Question 1

Exporting is available only to large corporations.

Accepted Answer

A) True 
 B)False

Question 2

An intermediary,or middleman,who markets goods in another country is acting as a(n)

Accepted Answer

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

Question 3

Standardizing products for the whole world as if it were a single entity is a characteristic of which strategy?

Accepted Answer

A)  Global strategy
B)  Multilevel strategy
C)  Standardization strategy
D)  Marketing strategy
E)  National strategyF) B) and D)
G) A) and D)

Question 4

McDonald's had to adapt its menus to reflect local preferences in India because

Accepted Answer

A)  Indians do not like hamburgers.
B)  all Indians are vegetarians.
C)  Indians only like to eat diet food.
D)  cows are sacred to many Indians and many are vegetarians.
E)  McDonald's had a bad reputation before opening franchises in India.F) A) and E)
G) A) and C)

Question 5

When Nike has its athletic shoes produced by companies in Asia,the Nike name still appears on the shoes.This illustrates

Accepted Answer

A)  contract manufacturing.
B)  licensing.
C)  direct investment.
D)  exporting.
E)  importing.F) C) and D)
G) A) and E)

Question 6

Why does direct investment have a high degree of commitment than a countertrade agreement?

Accepted Answer

Countertrade agreements merely involve b...

Question 7

What are some of the unique problems that a small business might face in global expansion that larger firms would not?

Accepted Answer

Smaller firms are more likely to find th...

Question 8

Direct investment is the least risky and least expensive way to participate in foreign trade.

Accepted Answer

A) True 
 B)False

Question 9

A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by

Accepted Answer

A)  the General Agreement on Tariffs and Trade.
B)  a free trade zone.
C)  the World Bank.
D)  the Eximbank.
E)  the International Monetary Fund.F) A) and B)
G) C) and D)

Question 10

Exporting is the purchase of products from another nation.

Accepted Answer

A) True 
 B)False

Question 11

Because many countries do not permit foreign companies to purchase and operate facilities in their countries,a company wishing to do business in such a country may share the business costs with the host country by forming a

Accepted Answer

A)  direct investment.
B)  contract manufacturing arrangement.
C)  corporation.
D)  joint venture.
E)  sole proprietorship.F) B) and E)
G) None of the above

Question 12

Understanding that Arab businessmen tend to stand face to face when holding a conversation reveals the importance of knowing another culture's use of

Accepted Answer

A)  language.
B)  dialect.
C)  religious practices.
D)  manners.
E)  body language.F) A) and E)
G) A) and D)

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Sociocultural differences,such as variations in spoken language and body language,have no impact on international business.

Accepted Answer

A) True 
 B)False

Question 15

When a nation imports more than it exports,it has a positive balance of trade.

Accepted Answer

A) True 
 B)False

Question 16

Maquiladoras are possible under the Asia-Pacific Economic Cooperation.

Accepted Answer

A) True 
 B)False

Question 17

Companies doing business internationally have traditionally used a globalization strategy.

Accepted Answer

A) True 
 B)False

Question 18

The U.S.has a trade deficit because

Accepted Answer

A)  American companies sell more goods to other countries than foreign companies sell here.
B)  China stopped exporting goods to the United States.
C)  America imports more products than it exports.
D)  American consumers stopped buying Chinese goods and services.
E)  American consumers buy far more domestic goods and services than foreign goods and services.F) A) and B)
G) B) and D)

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Why was the World Bank formed?

Accepted Answer

A)  Because developed nations realized that developing nations do not have any banks
B)  Because national banks do not have large enough cash reserves sometimes
C)  To act as a global policing service
D)  To loan money to underdeveloped and developing countries
E)  To help developed nations obtain money to start businessesF) B) and E)
G) C) and D)

Exam 3: Business in a Borderless World

When a nation imports more than it exports,it has a positive balance of trade.

Correct AnswerverifiedShow Answer

An intermediary,or middleman,who markets goods in another country is acting as a(n)

Correct AnswerverifiedShow Answer

Why was the World Bank formed?

Correct AnswerverifiedShow Answer

Direct investment is the least risky and least expensive way to participate in foreign trade.

Correct AnswerverifiedShow Answer

McDonald's had to adapt its menus to reflect local preferences in India because

Correct AnswerverifiedShow Answer

A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by

Correct AnswerverifiedShow Answer

Companies doing business internationally have traditionally used a globalization strategy.

Correct AnswerverifiedShow Answer

When Nike has its athletic shoes produced by companies in Asia,the Nike name still appears on the shoes.This illustrates

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Standardizing products for the whole world as if it were a single entity is a characteristic of which strategy?

Correct AnswerverifiedShow Answer

Because many countries do not permit foreign companies to purchase and operate facilities in their countries,a company wishing to do business in such a country may share the business costs with the host country by forming a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Maquiladoras are possible under the Asia-Pacific Economic Cooperation.

Correct AnswerverifiedShow Answer

Exporting is available only to large corporations.

Correct AnswerverifiedShow Answer

What are some of the unique problems that a small business might face in global expansion that larger firms would not?

Correct AnswerverifiedSmaller firms are more likely to find th...View AnswerShow Answer

Exporting is the purchase of products from another nation.

Correct AnswerverifiedShow Answer

The U.S.has a trade deficit because

Correct AnswerverifiedShow Answer

Why does direct investment have a high degree of commitment than a countertrade agreement?

Correct AnswerverifiedCountertrade agreements merely involve b...View AnswerShow Answer

Understanding that Arab businessmen tend to stand face to face when holding a conversation reveals the importance of knowing another culture's use of

Correct AnswerverifiedShow Answer

Sociocultural differences,such as variations in spoken language and body language,have no impact on international business.

Correct AnswerverifiedShow Answer

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Smaller firms are more likely to find th...
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Countertrade agreements merely involve b...
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