Question 1

A U.S.company,3M Inc.,owns a film-manufacturing facility in Italy.This is an example of:

Accepted Answer

A)  strategic alliance.
B)  a direct investment.
C)  a joint venture.
D)  licensing.
E)  exporting.F) C) and D)
G) B) and E)

Question 2

A specific amount of money levied on each unit of a product brought into a country is termed as a(n) _____.

Accepted Answer

A)  ad valorem tariff
B)  value-added tariff
C)  fixed tariff
D)  prohibitive tariff
E)  zero tariffF) A) and E)
G) All of the above

Question 3

Identify the correct statement regarding trading companies.

Accepted Answer

A)  They handle manufacturing activities.
B)  They handle marketing research for other companies.
C)  They rarely offer warehousing facilities.
D)  Their activities do not encompass advertising for other companies.
E)  They refrain from handling consulting activities.F) D) and E)
G) B) and E)

Question 4

Muslim generally nations forbid the importation of alcoholic beverages on _____ grounds.

Accepted Answer

A)  religious
B)  political
C)  economic
D)  geographical
E)  technologicalF) B) and D)
G) A) and C)

Question 5

A(n) _____ can be best defined as a group of nations or companies that agrees to act together as a monopoly and not compete with each other in order to generate a competitive advantage in world market .

Accepted Answer

A)  conglomerate
B)  licensor
C)  cartel
D)  embargo
E)  licenseeF) B) and D)
G) None of the above

Question 6

A fixed tariff differs from an ad valorem tariff because an ad valorem tariff:

Accepted Answer

A)  is a specific amount of money levied on each unit of a product sold by a country.
B)  is a specific amount of money levied on each unit of a product brought into a country.
C)  is based on the value of an item.
D)  prohibits trade in a particular product.
E)  limits the number of units of a particular product that can be imported into a country.F) B) and D)
G) B) and C)

Question 7

A multinational strategy involves customizing products,promotion,and distribution according to cultural,technological,regional,and national differences.

Accepted Answer

A) True 
 B)False

Question 8

The country of Southernberg is the only producer of oil.This gives Southernberg a(n) _____.

Accepted Answer

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

Question 9

_____ can be best defined as a partnership formed to create competitive advantage on a worldwide basis.

Accepted Answer

A)  A joint venture
B)  Licensing
C)  A direct investment
D)  Contract manufacturing
E)  A strategic allianceF) A) and C)
G) C) and D)

Question 10

Identify the correct statement about dumping.

Accepted Answer

A)  Dumping occurs when the country of origin has products with the latest technologically that are in high demand in overseas markets.
B)  Dumping occurs when a business sells products at much more than what it costs to produce them.
C)  Dumping occurs when the domestic market for a firm's product is too big for match the level of production.
D)  Quotas cannot be imposed based on suspicion of dumping unless proven.
E)  Dumping permits quick entry into a market.F) B) and E)
G) A) and D)

Question 11

Which of the following is true of franchising?

Accepted Answer

A)  Franchising is a form of foreign direct investment.
B)  The franchisee uses its own logo in the business.
C)  A firm has to spend a huge sum of money to enter the international marketplace through franchising.
D)  Franchising is especially advantageous for large manufacturers.
E)  Franchising minimizes problems associated with shipping costs,tariffs,and trade restrictions.F) D) and E)
G) A) and C)

Question 12

Colombia can produce coffee much more efficiently than it can produce other items; this gives Colombia a(n) _____ advantage.

Accepted Answer

A)  absolute
B)  competitive
C)  domestic
D)  marginal
E)  comparativeF) None of the above
G) A) and B)

Question 13

Which of the following terms can be best defined as the purchase of goods and services from foreign sources?

Accepted Answer

A)  Licensing
B)  Franchising
C)  Dumping
D)  Exporting
E)  ImportingF) A) and B)
G) C) and E)

Question 14

Exporting is the purchase of products from another nation.

Accepted Answer

A) True 
 B)False

Question 15

Which is one of the implications of trade deficits?

Accepted Answer

A)  The success of businesses
B)  The import of more products
C)  The loss of jobs
D)  The export of more services
E)  A higher standard of livingF) B) and E)
G) C) and D)

Question 16

Which of the following is true of multinational corporations (MNCs) ?

Accepted Answer

A)  They are the highest level of international business involvement.
B)  They decrease the gap between rich and poor nations.
C)  They have significant ties to specific nations or regions.
D)  They usually have lesser assets than the countries in which they operate.
E)  They are less complicated than corporations.F) C) and D)
G) B) and C)

Question 17

Which of the following is likely to be an impact of a decrease in the value of yen in relation to the U.S.dollar?

Accepted Answer

A)  The Japanese imports of U.S.goods would increase.
B)  The number of Japanese tourists in the U.S.would increase.
C)  Trips to Japan would become more expensive for foreign tourists.
D)  Imports would become relatively expensive for Japanese consumers.
E)  The cost of Japanese goods abroad would become higher.F) A) and D)
G) B) and E)

Question 18

Why has outsourcing become a controversial practice in the United States?

Accepted Answer

A)  Many jobs have moved overseas where those tasks can be accomplished for lower costs.
B)  Outsourcing empowers the outsourcing company with more managerial control.
C)  The losses incurred out of the hidden costs of outsourcing are making companies go bankrupt.
D)  Delegation of several processes leaves the outsourcing company with much lesser time to concentrate on to its core business process.
E)  The outsourced products end up having sub-standard quality because their producers lack expertise.F) A) and E)
G) A) and B)

Question 19

Direct investment gives lesser power and is the least expensive way to participate in foreign trade.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following can be best defined as a trade agreement in which one company allows another company to use its company name,products,patents,brands,trademarks,raw materials,and/or production processes in exchange for a fee or royalty?

Accepted Answer

A)  Direct investment
B)  Strategic alliance
C)  Joint venture
D)  Outsourcing
E)  LicensingF) B) and E)
G) A) and C)

Exam 3: Business in a Borderless World

A specific amount of money levied on each unit of a product brought into a country is termed as a(n) _____.

Correct AnswerverifiedShow Answer

Identify the correct statement regarding trading companies.

Correct AnswerverifiedShow Answer

A fixed tariff differs from an ad valorem tariff because an ad valorem tariff:

Correct AnswerverifiedShow Answer

The country of Southernberg is the only producer of oil.This gives Southernberg a(n) _____.

Correct AnswerverifiedShow Answer

Which of the following terms can be best defined as the purchase of goods and services from foreign sources?

Correct AnswerverifiedShow Answer

Direct investment gives lesser power and is the least expensive way to participate in foreign trade.

Correct AnswerverifiedShow Answer

Which of the following is true of franchising?

Correct AnswerverifiedShow Answer

Which of the following is true of multinational corporations (MNCs) ?

Correct AnswerverifiedShow Answer

Which of the following can be best defined as a trade agreement in which one company allows another company to use its company name,products,patents,brands,trademarks,raw materials,and/or production processes in exchange for a fee or royalty?

Correct AnswerverifiedShow Answer

A multinational strategy involves customizing products,promotion,and distribution according to cultural,technological,regional,and national differences.

Correct AnswerverifiedShow Answer

Exporting is the purchase of products from another nation.

Correct AnswerverifiedShow Answer

_____ can be best defined as a partnership formed to create competitive advantage on a worldwide basis.

Correct AnswerverifiedShow Answer

Which is one of the implications of trade deficits?

Correct AnswerverifiedShow Answer

A U.S.company,3M Inc.,owns a film-manufacturing facility in Italy.This is an example of:

Correct AnswerverifiedShow Answer

Colombia can produce coffee much more efficiently than it can produce other items; this gives Colombia a(n) _____ advantage.

Correct AnswerverifiedShow Answer

Why has outsourcing become a controversial practice in the United States?

Correct AnswerverifiedShow Answer

Which of the following is likely to be an impact of a decrease in the value of yen in relation to the U.S.dollar?

Correct AnswerverifiedShow Answer

Identify the correct statement about dumping.

Correct AnswerverifiedShow Answer

Muslim generally nations forbid the importation of alcoholic beverages on _____ grounds.

Correct AnswerverifiedShow Answer

A(n) _____ can be best defined as a group of nations or companies that agrees to act together as a monopoly and not compete with each other in order to generate a competitive advantage in world market .

Correct AnswerverifiedShow Answer

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