Question 1

In most countries,participation in international business is restricted to large corporations.

Accepted Answer

A) True 
 B)False

Question 2

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Accepted Answer

A) True 
 B)False

Question 3

Tiffany & Co.learned that more attentive customer service was necessary in order to succeed in Japan.This is an example of a(n) _____ barrier.

Accepted Answer

A)  technological
B)  political
C)  legal
D)  social
E)  economicF) B) and C)
G) C) and E)

Question 4

A(n) _____ exists when a country is the only source or producer of an item.

Accepted Answer

A)  comparative advantage
B)  comparative disadvantage
C)  absolute advantage
D)  absolute disadvantage
E)  domestic advantageF) A) and E)
G) B) and C)

Question 5

Multinational corporations (MNCs)are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Exporting may occur through _____,which involve bartering products for other products rather than currency.

Accepted Answer

A)  export agencies
B)  free-trade agreements
C)  direct selling contracts
D)  countertrade agreements
E)  outsourcing agreementsF) B) and C)
G) A) and D)

Question 7

The effective translation of product names can be crucial to the success in foreign markets because of:

Accepted Answer

A)  political barriers.
B)  cultural barriers.
C)  legal barriers.
D)  the presence of export quotas.
E)  the differences in body language.F) A) and B)
G) A) and C)

Question 8

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Accepted Answer

A) True 
 B)False  True

Question 9

The country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the value of the imported TV sets.Thelisia is paying a(n) _____.

Accepted Answer

A)  sales tax
B)  transactional tax
C)  ad valorem tariff
D)  fixed tariff
E)  export tariffF) A) and B)
G) None of the above C

Question 10

Which of the following can be best defined as a corporation that operates in several countries but without significant ties to any of them?

Accepted Answer

A)  A licensor
B)  An exporter
C)  A monopolist corporation
D)  A multinational corporation
E)  A contract manufacturing corporationF) A) and B)
G) B) and D)

Question 11

An intermediary who handles international transactions for other firms is acting as a(n) :

Accepted Answer

A)  licensing agent.
B)  franchising agent.
C)  export agent.
D)  contract manufacturer.
E)  direct investor.F) C) and D)
G) A) and D)

Question 12

International business involves the buying,selling,and trading of goods and services across national boundaries.

Accepted Answer

A) True 
 B)False

Question 13

When compared to all other countries,the country called Theoria can produce wheat in the most efficient manner.This gives Theoria a(n) _____.

Accepted Answer

A)  comparative advantage
B)  comparative disadvantage
C)  absolute advantage
D)  absolute disadvantage
E)  domestic advantageF) A) and B)
G) A) and C) C

Question 14

The relocation of business processes by a company or subsidiary to another country,in which the company retains control of the process,is called _____.

Accepted Answer

A)  contract manufacturing
B)  licensing
C)  direct investment
D)  offshoring
E)  outsourcingF) None of the above
G) B) and E)

Question 15

Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

Accepted Answer

A) True 
 B)False

Question 16

Agro Corp.,based in the country of Arahonia,is a company that produces agricultural products.The domestic market of Arahonia is not sufficient to support Agro Corp.'s large-scale level of production because Arahonia is a small but highly industrialized country.Thus,Agro Corp.decides to sell its products to the agriculture-based country of Petinberg at less than their production cost.This process is termed as _____.

Accepted Answer

A)  dumping
B)  offshoring
C)  outsourcing
D)  monopolizing
E)  franchisingF) A) and E)
G) None of the above

Question 17

The usefulness of the International Monetary Fund (IMF) for developed countries is limited because:

Accepted Answer

A)  these countries rely extensively on the public market.
B)  the IMF does not provide short-term loans.
C)  the IMF does not aid countries with balance-of-payment deficits.
D)  the IMF was forced to decrease its funds to emerging economies.
E)  these countries use private markets as a major source of capital.F) A) and E)
G) C) and D)

Question 18

Identify the industrialized nation from among the following.

Accepted Answer

A)  Iraq
B)  Myanmar
C)  Pakistan
D)  North Korea
E)  JapanF) A) and B)
G) A) and C)

Question 19

Identify the true statement about tariffs and trade restrictions.

Accepted Answer

A)  Countries are not allowed to levy tariffs for political reasons.
B)  Protective tariffs allow more expensive domestic goods to compete with foreign ones.
C)  Critics of protective tariffs argue that their use inhibits free trade and competition.
D)  Countries cannot allow citizens traveling abroad to bring home merchandise without paying an import tariff.
E)  Quotas cannot be established by voluntary agreements.F) A) and E)
G) B) and C)

Question 20

_____ is the single largest trading partner of the United States.

Accepted Answer

A)  Mexico
B)  India
C)  China
D)  Japan
E)  CanadaF) A) and B)
G) B) and E)

Exam 3: Business in a Borderless World

In most countries,participation in international business is restricted to large corporations.

Correct Answer
verified

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Correct Answer
verified

Tiffany & Co.learned that more attentive customer service was necessary in order to succeed in Japan.This is an example of a(n) _____ barrier.

Correct Answer
verified

A(n) _____ exists when a country is the only source or producer of an item.

Correct Answer
verified

Multinational corporations (MNCs)are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

Correct Answer
verified

Exporting may occur through _____,which involve bartering products for other products rather than currency.

Correct Answer
verified

The effective translation of product names can be crucial to the success in foreign markets because of:

Correct Answer
verified

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Correct Answer
verified
True

The country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the value of the imported TV sets.Thelisia is paying a(n) _____.

Correct Answer
verified
C

Which of the following can be best defined as a corporation that operates in several countries but without significant ties to any of them?

Correct Answer
verified

An intermediary who handles international transactions for other firms is acting as a(n) :

Correct Answer
verified

International business involves the buying,selling,and trading of goods and services across national boundaries.

Correct Answer
verified

When compared to all other countries,the country called Theoria can produce wheat in the most efficient manner.This gives Theoria a(n) _____.

Correct Answer
verified
C

The relocation of business processes by a company or subsidiary to another country,in which the company retains control of the process,is called _____.

Correct Answer
verified

Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

Correct Answer
verified

Correct Answer
verified

The usefulness of the International Monetary Fund (IMF) for developed countries is limited because:

Correct Answer
verified

Identify the industrialized nation from among the following.

Correct Answer
verified

Identify the true statement about tariffs and trade restrictions.

Correct Answer
verified

_____ is the single largest trading partner of the United States.

Correct Answer
verified

Exam 3: Business in a Borderless World

In most countries,participation in international business is restricted to large corporations.

Correct AnswerverifiedShow Answer

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Correct AnswerverifiedShow Answer

Tiffany & Co.learned that more attentive customer service was necessary in order to succeed in Japan.This is an example of a(n) _____ barrier.

Correct AnswerverifiedShow Answer

A(n) _____ exists when a country is the only source or producer of an item.

Correct AnswerverifiedShow Answer

Multinational corporations (MNCs)are often criticized on the grounds that they adversely affect production in the host countries and also contribute to higher unemployment.

Correct AnswerverifiedShow Answer

Exporting may occur through _____,which involve bartering products for other products rather than currency.

Correct AnswerverifiedShow Answer

The effective translation of product names can be crucial to the success in foreign markets because of:

Correct AnswerverifiedShow Answer

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Correct AnswerverifiedTrue

The country of Thelisia pays a 12 percent duty on imported TV sets which is calculated as a fixed percentage of the value of the imported TV sets.Thelisia is paying a(n) _____.

Correct AnswerverifiedC

Which of the following can be best defined as a corporation that operates in several countries but without significant ties to any of them?

Correct AnswerverifiedShow Answer

An intermediary who handles international transactions for other firms is acting as a(n) :

Correct AnswerverifiedShow Answer

International business involves the buying,selling,and trading of goods and services across national boundaries.

Correct AnswerverifiedShow Answer

When compared to all other countries,the country called Theoria can produce wheat in the most efficient manner.This gives Theoria a(n) _____.

Correct AnswerverifiedC

The relocation of business processes by a company or subsidiary to another country,in which the company retains control of the process,is called _____.

Correct AnswerverifiedShow Answer

Protective tariffs raise the price of foreign goods to allow expensive domestic goods to compete with foreign ones.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The usefulness of the International Monetary Fund (IMF) for developed countries is limited because:

Correct AnswerverifiedShow Answer

Identify the industrialized nation from among the following.

Correct AnswerverifiedShow Answer

Identify the true statement about tariffs and trade restrictions.

Correct AnswerverifiedShow Answer

_____ is the single largest trading partner of the United States.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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True

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C

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C

Correct Answer
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Correct Answer
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