Question 1

A ________ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.

Accepted Answer

A)  protective
B)  restrictive
C)  progressive
D)  revenueE) A) and B)
F) C) and D)

Question 2

Patrick's Products has a manufacturing plant near Calgary.The plant specializes in compact washers and dryers for countries in which consumers have less living space.Patrick's Products participates in the global market through:

Accepted Answer

A)  importing.
B)  dumping.
C)  exporting.
D)  balancing trade.E) A) and B)
F) None of the above

Question 3

China presents enormous trade opportunities.However,due to political risks in that country,little progress on trade has been made.

Accepted Answer

A) True 
 B)False

Question 4

Currency fluctuations can cause problems to firms trading in the global market.

Accepted Answer

A) True 
 B)False

Question 5

Absolute advantage is the basis for most global trade.

Accepted Answer

A) True 
 B)False

Question 6

Japanese automobile producers sold more of their production overseas than they sold in Japan.Their business strategy emphasizes:

Accepted Answer

A)  importing
B)  licensing
C)  dumping
D)  exportingE) A) and D)
F) B) and D)

Question 7

Free trade between nations generally results in:

Accepted Answer

A)  industrialized nations gaining at the expense of developing nations.
B)  the loss of jobs in developing nations.
C)  mutually beneficial exchange relationships.
D)  higher prices for goods that are imported.E) A) and D)
F) None of the above

Question 8

Tokyo Disneyland is an example of an export trading company.

Accepted Answer

A) True 
 B)False

Question 9

Explain how socio-cultural differences can create trade difficulties in trading in world markets.

Accepted Answer

Cultural differences clearly exist among...

Question 10

Global trade includes the exchange of goods and services across national borders.

Accepted Answer

A) True 
 B)False

Question 11

In measuring the effectiveness of global trade,nations carefully follow which two key indicators?

Accepted Answer

Balance of...

Question 12

In global markets,no central system of laws exists.

Accepted Answer

A) True 
 B)False

Question 13

Foreign travel can help in identifying global business opportunities.

Accepted Answer

A) True 
 B)False

Question 14

Paula,a Canadian businessperson who closely follows international business conditions,recently read a newspaper article predicting that the value of the dollar will soon fall.If this article is correct,Paula should expect:

Accepted Answer

A)  prices of imported goods to rise,and prices of Canadian goods sold overseas to rise as well.
B)  prices of imported goods to rise,but prices of Canadian goods sold overseas to fall.
C)  prices of imported goods to fall,and prices of Canadian goods sold overseas to fall as well.
D)  prices of imported goods to fall,but prices of Canadian goods sold overseas to rise.E) A) and D)
F) All of the above

Question 15

_______ involves the production of private-label goods by a foreign company to which a company then attaches its brand name or trademark.

Accepted Answer

A)  Franchising
B)  Contract manufacturing
C)  Import trading
D)  Export tradingE) None of the above
F) B) and D)

Question 16

One goal of the World Trade Organization (WTO)is to increase national subsidies on agricultural products.

Accepted Answer

A) True 
 B)False

Question 17

The principle of mercantilism encouraged nations to keep economics separate from politics.

Accepted Answer

A) True 
 B)False

Question 18

Effective management styles are transferable from one culture to another.

Accepted Answer

A) True 
 B)False

Question 19

A nation has a ___________ in the production of a good if it can produce that good more effectively or efficiently than it can produce other goods.

Accepted Answer

A)  supreme advantage
B)  primary efficiency
C)  qualified advantage
D)  comparative advantageE) C) and D)
F) B) and D)

Question 20

One advantage of foreign licensing is that the licensor spends little or no money to produce and market their product

Accepted Answer

A) True 
 B)False

Exam 3: Competing in Global Markets

Tokyo Disneyland is an example of an export trading company.

Correct AnswerverifiedShow Answer

Global trade includes the exchange of goods and services across national borders.

Correct AnswerverifiedShow Answer

A nation has a ___________ in the production of a good if it can produce that good more effectively or efficiently than it can produce other goods.

Correct AnswerverifiedShow Answer

Free trade between nations generally results in:

Correct AnswerverifiedShow Answer

Paula,a Canadian businessperson who closely follows international business conditions,recently read a newspaper article predicting that the value of the dollar will soon fall.If this article is correct,Paula should expect:

Correct AnswerverifiedShow Answer

A ________ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.

Correct AnswerverifiedShow Answer

In global markets,no central system of laws exists.

Correct AnswerverifiedShow Answer

In measuring the effectiveness of global trade,nations carefully follow which two key indicators?

Correct AnswerverifiedBalance of...View AnswerShow Answer

The principle of mercantilism encouraged nations to keep economics separate from politics.

Correct AnswerverifiedShow Answer

China presents enormous trade opportunities.However,due to political risks in that country,little progress on trade has been made.

Correct AnswerverifiedShow Answer

Foreign travel can help in identifying global business opportunities.

Correct AnswerverifiedShow Answer

_______ involves the production of private-label goods by a foreign company to which a company then attaches its brand name or trademark.

Correct AnswerverifiedShow Answer

One advantage of foreign licensing is that the licensor spends little or no money to produce and market their product

Correct AnswerverifiedShow Answer

Patrick's Products has a manufacturing plant near Calgary.The plant specializes in compact washers and dryers for countries in which consumers have less living space.Patrick's Products participates in the global market through:

Correct AnswerverifiedShow Answer

Currency fluctuations can cause problems to firms trading in the global market.

Correct AnswerverifiedShow Answer

Absolute advantage is the basis for most global trade.

Correct AnswerverifiedShow Answer

Japanese automobile producers sold more of their production overseas than they sold in Japan.Their business strategy emphasizes:

Correct AnswerverifiedShow Answer

Effective management styles are transferable from one culture to another.

Correct AnswerverifiedShow Answer

One goal of the World Trade Organization (WTO)is to increase national subsidies on agricultural products.

Correct AnswerverifiedShow Answer

Explain how socio-cultural differences can create trade difficulties in trading in world markets.

Correct AnswerverifiedCultural differences clearly exist among...View AnswerShow Answer

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Balance of...
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Cultural differences clearly exist among...
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