Question 1

Complete the following using the terms listed below.
-Countries establish a ______ where they can trade among themselves without trade barriers.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) dumping 
E) imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)devaluation
K)exchange rate
L)absolute advantage
M)global strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)Comparative advantage

Question 2

The hypothetical country of Austrica requires foreign companies that buy and sell Austrica products to use only Austrica currency in these transactions. Austrica is using ______ as a means of controlling international trade.

Accepted Answer

A)  governmentally granted rights 
B)  exchange control 
C)  international currency trading 
D)  local banks

Question 3

Complete the following using the terms listed below.
-A country has ______ in the marketing of a product if it has a monopolistic position or it produces the product at the lowest cost.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) dumping 
E) imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)devaluation
K)exchange rate
L)absolute advantage
M)global strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)Comparative advantage

Question 4

A global strategy and a multidomestic strategy are the same.

Accepted Answer

A) True 
 B)False

Question 5

The International Monetary Fund (IMF) was created to promote trade through financial cooperation.

Accepted Answer

A) True 
 B)False

Question 6

A superior education system can lead to a comparative advantage in human resources.

Accepted Answer

A) True 
 B)False

Question 7

Explain the advantages and disadvantages of imposing trade restrictions.

Accepted Answer

The answer of Explain the advantages and disadvantages of imposing...

Question 8

When firms develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets, they are using a ______.

Accepted Answer

A)  global strategy 
B)  free trade strategy 
C)  uniform strategy 
D)  multidomestic strategy

Question 9

Tariffs and quotas are the same.

Accepted Answer

A) True 
 B)False

Question 10

An American electronics firm sets up a venture capital firm to fund promising British and Irish startup companies. This is an example of ______.

Accepted Answer

A)  a licensing agreement 
B)  subcontracting 
C)  a direct investment 
D)  a joint venture

Question 11

Economically speaking, unlike countries included in the EU, Canada is a national market with a single economy.

Accepted Answer

A) True 
 B)False

Question 12

The EU bans imports of any U.S. agricultural product that has been treated with growth hormones. In response, the United States triples tariffs on imports of selected European products. This would be an example of a protective tariff.

Accepted Answer

A) True 
 B)False

Question 13

In order to use a global business strategy, XYZ Inc. should ensure that ______.

Accepted Answer

A)  the company's process are low compared to similar products 
B)  the company's products are of high quality 
C)  the company's product appeals to market segments that are common to many nations 
D)  the company's product is unique to the domestic market

Question 14

Less-developed countries represent a lucrative market for Canadian firms because of their huge population.

Accepted Answer

A) True 
 B)False

Question 15

The country Artesia exported products totaling $86 billion last year. During the year, Artesia imported products valued at $43 billion. Artesia has a(n) ______.

Accepted Answer

A)  exchange rate of 2 to 1 
B)  trade deficit of $43 billion 
C)  trade surplus of $43 billion 
D)  unfavourable balance of payments

Question 16

Which of the following should be a key consideration when making the decision to trade internationally?

Accepted Answer

A)  availability of the factors of production in the other country 
B)  management training opportunities in the other country 
C)  availability of investors in the other country 
D)  the stock market

Question 17

Nearshoring is the best way to enter international markets.

Accepted Answer

A) True 
 B)False

Question 18

Complete the following using the terms listed below.
-A(n) _____ develops and markets products to serve different needs and tastes of separate national markets.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) dumping 
E) imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)devaluation
K)exchange rate
L)absolute advantage
M)global strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)Comparative advantage

Question 19

One effect of the North American Free Trade Agreement (NAFTA) is

Accepted Answer

A)  an increase in the number of low-wage jobs in the United States. 
B)  an increase in trade among the NAFTA member nations. 
C)  an increase in trade restrictions among the member nations. 
D)  a decrease in trade among NAFTA member nations.

Question 20

If the value of the Canadian dollar falls relative to the U.S. dollar, Canadian exports to the United States should increase.

Accepted Answer

A) True 
 B)False

Exam 4: Competing in World Markets

Complete the following using the terms listed below. -Countries establish a ______ where they can trade among themselves without trade barriers.

The hypothetical country of Austrica requires foreign companies that buy and sell Austrica products to use only Austrica currency in these transactions. Austrica is using ______ as a means of controlling international trade.

Complete the following using the terms listed below. -A country has ______ in the marketing of a product if it has a monopolistic position or it produces the product at the lowest cost.

A global strategy and a multidomestic strategy are the same.

The International Monetary Fund (IMF) was created to promote trade through financial cooperation.

A superior education system can lead to a comparative advantage in human resources.

Explain the advantages and disadvantages of imposing trade restrictions.

When firms develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets, they are using a ______.

Tariffs and quotas are the same.

An American electronics firm sets up a venture capital firm to fund promising British and Irish startup companies. This is an example of ______.

Economically speaking, unlike countries included in the EU, Canada is a national market with a single economy.

The EU bans imports of any U.S. agricultural product that has been treated with growth hormones. In response, the United States triples tariffs on imports of selected European products. This would be an example of a protective tariff.

In order to use a global business strategy, XYZ Inc. should ensure that ______.

Less-developed countries represent a lucrative market for Canadian firms because of their huge population.

The country Artesia exported products totaling $86 billion last year. During the year, Artesia imported products valued at $43 billion. Artesia has a(n) ______.

Which of the following should be a key consideration when making the decision to trade internationally?

Nearshoring is the best way to enter international markets.

Complete the following using the terms listed below. -A(n) _____ develops and markets products to serve different needs and tastes of separate national markets.

One effect of the North American Free Trade Agreement (NAFTA) is

If the value of the Canadian dollar falls relative to the U.S. dollar, Canadian exports to the United States should increase.