Question 1

The impetus behind trade protectionism is:

Accepted Answer

A)   to limit accelerated growth of GDP,that would cause inflation to escalate.
B)   to facilitate the belief that it will keep one's nation disease free.
C)   to increase the positive economic consequences of one's trade position.
D)   solely for the protection of nuclear attack.E) B) and C)
F) B) and D)

Question 2

The theory of _______________ states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods from other nations that they produce more efficiently.

Accepted Answer

A)   comparative advantage
B)   absolute advantage
C)   mercantilism
D)   bilateral advantageE) A) and B)
F) None of the above

Question 3

An example of a U.S.import would be the purchase of oil by U.S.companies from Saudi Arabia.

Accepted Answer

A) True 
 B)False

Question 4

One objective of NAFTA is:

Accepted Answer

A)   increase trade barriers between the countries involved.
B)   decrease investment opportunities in the countries involved.
C)   promote conditions of fair competition for the three trading partners.
D)   improve working conditions in Central America.E) None of the above
F) All of the above

Question 5

The value of goods imported into France exceeds the value of French exports.This indicates that France:

Accepted Answer

A)   Has an exchange rate decrease.
B)   Utilizes high tariffs.
C)   Has a budget deficit.
D)   Has a trade deficit.E) A) and B)
F) C) and D)

Question 6

Brett,a U.S.student,is preparing for a trip to Thailand in the near future.He read in the Wall Street Journal that the dollar has strength against the Thai Baht (Thailand's currency) .Which of the following would be an exchange that would indicate this currency situation?

Accepted Answer

A)   $10 U.S.dollar for 1 Baht.
B)   $1 U.S.dollar for 1 Baht.
C)   $1 U.S.dollar for .22 Baht.
D)   $1 U.S.dollar for 34.78 Baht.E) A) and C)
F) A) and B)

Question 7

Adam's Apple Corporation ships all of the apples from its orchards in Washington to a single buyer in Japan.The firm's entire profits are derived from this international transaction.Adam's Apple Corporation:

Accepted Answer

A)   is an example of a multinational corporation.
B)   is not a multinational corporation.
C)   is contributing to the U.S.balance of trade deficit.
D)   will benefit greatly from the establishment of NAFTA.E) None of the above
F) A) and B)

Question 8

The second wave of offshore outsourcing is having a more negative effect on the U.S.job market.

Accepted Answer

A) True 
 B)False

Question 9

As a form of franchising,sovereign wealth funds are getting very little attention as a strategy for doing business in foreign markets.

Accepted Answer

A) True 
 B)False

Question 10

Many U.S.companies fail to think globally.

Accepted Answer

A) True 
 B)False

Question 11

A favorable balance of trade occurs when the value of:

Accepted Answer

A)   imports equal the value of exports.
B)   the cash inflows equal the value of the cash outflows.
C)   the value of imports is less than the value of exports.
D)   the value of the dollar is greater than the value of the Euro.E) None of the above
F) C) and D)

Question 12

When a firm agrees to license its product,it gains notoriety but gives up all revenues.

Accepted Answer

A) True 
 B)False

Question 13

____________ describes an attitude held by some American business people that American culture is superior to all others.

Accepted Answer

A)   Primary culture
B)   Ethnocentricity
C)   Cultural institutionalism
D)   Social myopiaE) None of the above
F) All of the above

Question 14

ExxonMobil Corporation refines and markets its petroleum products in many different nations.In addition,Exxon's stockholders and managers come from many different nations.If some of the nations where it operates decided to take over the assets of the company,this act would constitute:

Accepted Answer

A)   patent infringement.
B)   expropriation.
C)   illegal activity.
D)   hostile takeover.E) A) and B)
F) C) and D)

Question 15

Sociocultural differences that affect global businesses include customs,language,and religion.

Accepted Answer

A) True 
 B)False

Question 16

Export trading companies:

Accepted Answer

A)   enter into joint ventures with firms wanting to export goods and services.
B)   are government owned businesses that help companies go global.
C)   connect sellers in the U.S.with buyers in other nations,and help with customs,documentation and payments.
D)   is similar to a corporation that sells franchises.E) None of the above
F) A) and D)

Question 17

___________ is the use of government regulations to limit the import of goods and services.

Accepted Answer

A)   Trade protectionism
B)   Fiscal policy
C)   Countertrade policy
D)   Monetary policyE) A) and C)
F) None of the above

Question 18

Foreign direct investment refers to the buying of goods produced in another country.

Accepted Answer

A) True 
 B)False

Question 19

In order to enjoy the highest standard of living possible,comparative advantage theory states that all nations should strive to become self-sufficient.

Accepted Answer

A) True 
 B)False

Question 20

A __________ is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project.

Accepted Answer

A)   multinational cooperative
B)   joint venture
C)   franchisee transfer
D)   recruit affiliationE) A) and B)
F) B) and D)

Exam 3: Doing Business in Global Markets

Sociocultural differences that affect global businesses include customs,language,and religion.

Correct AnswerverifiedShow Answer

In order to enjoy the highest standard of living possible,comparative advantage theory states that all nations should strive to become self-sufficient.

Correct AnswerverifiedShow Answer

A __________ is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project.

Correct AnswerverifiedShow Answer

The second wave of offshore outsourcing is having a more negative effect on the U.S.job market.

Correct AnswerverifiedShow Answer

The impetus behind trade protectionism is:

Correct AnswerverifiedShow Answer

An example of a U.S.import would be the purchase of oil by U.S.companies from Saudi Arabia.

Correct AnswerverifiedShow Answer

When a firm agrees to license its product,it gains notoriety but gives up all revenues.

Correct AnswerverifiedShow Answer

As a form of franchising,sovereign wealth funds are getting very little attention as a strategy for doing business in foreign markets.

Correct AnswerverifiedShow Answer

Brett,a U.S.student,is preparing for a trip to Thailand in the near future.He read in the Wall Street Journal that the dollar has strength against the Thai Baht (Thailand's currency) .Which of the following would be an exchange that would indicate this currency situation?

Correct AnswerverifiedShow Answer

Export trading companies:

Correct AnswerverifiedShow Answer

Foreign direct investment refers to the buying of goods produced in another country.

Correct AnswerverifiedShow Answer

___________ is the use of government regulations to limit the import of goods and services.

Correct AnswerverifiedShow Answer

Many U.S.companies fail to think globally.

Correct AnswerverifiedShow Answer

One objective of NAFTA is:

Correct AnswerverifiedShow Answer

A favorable balance of trade occurs when the value of:

Correct AnswerverifiedShow Answer

____________ describes an attitude held by some American business people that American culture is superior to all others.

Correct AnswerverifiedShow Answer

Adam's Apple Corporation ships all of the apples from its orchards in Washington to a single buyer in Japan.The firm's entire profits are derived from this international transaction.Adam's Apple Corporation:

Correct AnswerverifiedShow Answer

The value of goods imported into France exceeds the value of French exports.This indicates that France:

Correct AnswerverifiedShow Answer

ExxonMobil Corporation refines and markets its petroleum products in many different nations.In addition,Exxon's stockholders and managers come from many different nations.If some of the nations where it operates decided to take over the assets of the company,this act would constitute:

Correct AnswerverifiedShow Answer

The theory of _______________ states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods from other nations that they produce more efficiently.

Correct AnswerverifiedShow Answer

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