Question 1

Lever Brothers changed the formula of its bar soap to match different countries' water conditions and washing habits.This exemplifies a(n) :

Accepted Answer

A)  globalization strategy.
B)  outsourcing strategy.
C)  strategic alliance.
D)  multinational strategy.
E)  joint venture.F) A) and C)
G) C) and D)

Question 2

A negative balance of trade exists when a country:

Accepted Answer

A)  imports more than it exports.
B)  exports more than it imports.
C)  has more assets than debt liabilities.
D)  spends more than it saves.
E)  saves more than it spends.F) D) and E)
G) B) and E)

Question 3

Absolute advantage exists when a country is the only source of an item.

Accepted Answer

A) True 
 B)False

Question 4

Choose the international organization based in Geneva,Switzerland,that was created in 1995 by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) ,which deals with the rules of trade between nations.

Accepted Answer

A)  The European Union
B)  The World Trade Organization
C)  The World Bank
D)  The Association of Southeast Asian Nations
E)  The Asia-Pacific Economic CooperationF) A) and E)
G) B) and E)

Question 5

The difference between the flow of money into and out of a country is called its _____.

Accepted Answer

A)  balance of trade
B)  domestic gain
C)  balance of payments
D)  credit balance
E)  exchange rateF) B) and D)
G) C) and E)

Question 6

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

Accepted Answer

A) True 
 B)False

Question 7

The U.S.set up maquiladoras in China.

Accepted Answer

A) True 
 B)False

Question 8

The _____ is the closest thing the world has to an international central bank.

Accepted Answer

A)  International Monetary Fund
B)  World Bank
C)  Citicorp Bank
D)  Organization for Economic Cooperation and Development
E)  World Trade OrganizationF) A) and C)
G) C) and D)

Question 9

Which is the true statement about managing the challenges of global business?

Accepted Answer

A)  The network of CIBERs consist of a wide variety of US firms,especially for small and medium-sized firms.
B)  The network of CIBERs can provide small-sized firms knowledge of the internationalization process.
C)  The Commercial Service conducts its work through leading business schools in the United States.
D)  More and more companies are moving from this global strategy to a multinational strategy.
E)  Companies doing business internationally have traditionally used a standardized strategy.F) A) and C)
G) A) and D)

Question 10

On which of the following grounds are multinational corporations (MNCs) often criticized by antiglobalization activists?

Accepted Answer

A)  They increase unemployment in the host country.
B)  They bring in technology that is unknown to the host country.
C)  They use capital-intensive mode of production.
D)  They are liable to pay the taxes levied by the government of the host country.
E)  They increase the gap between rich and poor nations.F) B) and D)
G) A) and C)

Question 11

Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

Accepted Answer

A) True 
 B)False

Question 12

_____ can be best defined as the act of a country or business selling products at less than what it costs to produce them.

Accepted Answer

A)  Franchising
B)  Monopolizing
C)  Outsourcing
D)  Offshoring
E)  DumpingF) B) and D)
G) None of the above

Question 13

Which is the correct statement regarding tariffs and trade restrictions?

Accepted Answer

A)  Supporters of protective tariffs say they insulate new domestic industries against well-established foreign competitors.
B)  Tariffs are part of a country's legal structure,and thus,cannot established or removed for political reasons.
C)  Countries cannot control their foreign trade by forcing businesspeople to buy and sell foreign products through central banks.
D)  Embargoes are created to encourage the trade of particular products.
E)  Items purchased in different countries cannot have different tariffs if the items are identical.F) B) and C)
G) A) and B)

Question 14

Because of an unfavorable political situation between the countries,the country of Thetasia has placed a government order to prohibit the trade of private vehicles with the country of Calibria.Thetasia has maintained a(n) _____ with Calibria.

Accepted Answer

A)  trade tariff
B)  trade embargo
C)  quota limit
D)  fixed tariff
E)  ad valorem tariffF) B) and E)
G) A) and B)

Question 15

While offering its usual menu,McDonald's in Vietnam is specifically adapting its menu because:

Accepted Answer

A)  Vietnamese people do not like hamburgers.
B)  all Vietnamese people are vegetarians.
C)  Vietnamese people prefer a low-fat diet.
D)  it recognizes that Vietnamese consumers have their own preferences.
E)  McDonald's had a bad reputation before opening franchises in Vietnam.F) D) and E)
G) B) and E)

Question 16

Which of the following is likely to be a reason for some U.S.companies to bring their outsourced production processes back to the United States?

Accepted Answer

A)  Increasing labor unionization in the United States
B)  Increased government regulation of business in the United States
C)  Increasingly strict enforcement of intellectual property rights in Asian countries
D)  High cost of transporting products to the home country
E)  Increase in labor turnover rates in the United StatesF) A) and B)
G) None of the above

Question 17

Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations?

Accepted Answer

A)  General Agreement on Tariffs and Trade (GATT) 
B)  Asia-Pacific Economic Cooperation (APE
C)  
C)  North American Free Trade Agreement (NAFT
A)  
D)  European Union (EU) 
E)  Association of Southeast Asian Nations (ASEAN) F) C) and E)
G) A) and B)

Question 18

A favorable balance of trade exists when a country:

Accepted Answer

A)  imports more than it exports.
B)  exports more than it imports.
C)  has more debt liabilities than assets.
D)  spends more than it saves.
E)  saves more than it spends.F) A) and C)
G) B) and D)

Question 19

Which of the following is one of the most common reasons for setting quotas or tariffs?

Accepted Answer

A)  To increase licensing
B)  To increase sales
C)  To relax embargoes
D)  To prohibit dumping
E)  To encourage franchisingF) A) and E)
G) B) and E)

Question 20

Even when products are standardized,advertising often has to be modified to adapt to local cultures.

Accepted Answer

A) True 
 B)False

Exam 3: Business in a Borderless World

The U.S.set up maquiladoras in China.

Correct AnswerverifiedShow Answer

Which of the following is one of the most common reasons for setting quotas or tariffs?

Correct AnswerverifiedShow Answer

Choose the international organization based in Geneva,Switzerland,that was created in 1995 by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) ,which deals with the rules of trade between nations.

Correct AnswerverifiedShow Answer

Which is the true statement about managing the challenges of global business?

Correct AnswerverifiedShow Answer

The _____ is the closest thing the world has to an international central bank.

Correct AnswerverifiedShow Answer

Even when products are standardized,advertising often has to be modified to adapt to local cultures.

Correct AnswerverifiedShow Answer

While offering its usual menu,McDonald's in Vietnam is specifically adapting its menu because:

Correct AnswerverifiedShow Answer

Which of the following is likely to be a reason for some U.S.companies to bring their outsourced production processes back to the United States?

Correct AnswerverifiedShow Answer

A negative balance of trade exists when a country:

Correct AnswerverifiedShow Answer

_____ can be best defined as the act of a country or business selling products at less than what it costs to produce them.

Correct AnswerverifiedShow Answer

Lever Brothers changed the formula of its bar soap to match different countries' water conditions and washing habits.This exemplifies a(n) :

Correct AnswerverifiedShow Answer

The difference between the flow of money into and out of a country is called its _____.

Correct AnswerverifiedShow Answer

Which is the correct statement regarding tariffs and trade restrictions?

Correct AnswerverifiedShow Answer

Because of an unfavorable political situation between the countries,the country of Thetasia has placed a government order to prohibit the trade of private vehicles with the country of Calibria.Thetasia has maintained a(n) _____ with Calibria.

Correct AnswerverifiedShow Answer

Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations?

Correct AnswerverifiedShow Answer

Licensing allows a company to enter the international marketplace without spending large amounts of money abroad.

Correct AnswerverifiedShow Answer

A favorable balance of trade exists when a country:

Correct AnswerverifiedShow Answer

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

Correct AnswerverifiedShow Answer

On which of the following grounds are multinational corporations (MNCs) often criticized by antiglobalization activists?

Correct AnswerverifiedShow Answer

Absolute advantage exists when a country is the only source of an item.

Correct AnswerverifiedShow Answer

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