Question 1

Which of the following is not something that the International Monetary Fund does?

Accepted Answer

A)  Provides short-term loans to member countries
B)  Functions as a world central bank
C)  Eliminates trade barriers between nations
D)  Fosters international financial cooperation
E)  Provides individual home and auto loansF) B) and D)
G) None of the above

Question 2

Globalization refers only to products,not promotion or distribution.

Accepted Answer

A) True 
 B)False

Question 3

Protective tariffs raise the price of foreign goods to allow competition with more expensive domestic goods.

Accepted Answer

A) True 
 B)False

Question 4

When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits,this is an example of a

Accepted Answer

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

Question 5

A change in administration in a foreign government that is hostile to foreign trade is an example of a

Accepted Answer

A)  political barrier.
B)  cultural barrier.
C)  exchange barrier.
D)  export quota.
E)  body language.F) A) and D)
G) A) and C)

Question 6

The primary problem with a trade deficit is

Accepted Answer

A)  that a country is exporting more than it is importing.
B)  that more cash is leaving the country than is entering.
C)  that a country is spending more than saving.
D)  that a country is saving more than spending.
E)  export taxes.F) All of the above
G) A) and B)

Question 7

Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?

Accepted Answer

A)  Foreign Credit Insurance Association
B)  General Agreement on Tariffs and Trade
C)  World Bank
D)  Eximbank
E)  International Monetary FundF) A) and D)
G) None of the above

Question 8

The law that allows selected American firms desiring international trade to form monopolies to compete with foreign cartels is the

Accepted Answer

A)  Webb-Pomerene Export Trade Act.
B)  Bretton Woods Agreement.
C)  GATT.
D)  Foreign Corrupt Practices Act.
E)  Sherman Antitrust Act.F) A) and E)
G) A) and D)

Question 9

A trade advantage with the best chance of surviving is one based on

Accepted Answer

A)  worker know-how.
B)  technology.
C)  a monopoly of a resource.
D)  production efficiency.
E)  lack of a resource.F) A) and E)
G) C) and D)

Question 10

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

Accepted Answer

A)  balance of trade.
B)  imbalance of trade.
C)  balance of payments.
D)  trade payment balance.
E)  exchange rate.F) C) and E)
G) B) and E)

Question 11

A group of nations or companies that band together to act as a monopoly is known as a

Accepted Answer

A)  conglomerate.
B)  licensor.
C)  cartel.
D)  multinational.
E)  licensee.F) D) and E)
G) A) and B)

Question 12

In international trade,what is the difference between an absolute advantage and a comparative advantage?

Accepted Answer

An absolute advantage in trade exists wh...

Question 13

Which of the following countries was an original member nation of APEC?

Accepted Answer

A)  Belgium
B)  Mexico
C)  China
D)  Japan
E)  ChileF) A) and D)
G) None of the above

Question 14

Trading companies offer all of the following services except

Accepted Answer

A)  consulting.
B)  advertising.
C)  manufacturing.
D)  warehousing.
E)  foreign exchange.F) All of the above
G) A) and C)

Question 15

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?

Accepted Answer

A)  Legal
B)  Political
C)  Cultural
D)  Economic
E)  ScientificF) A) and C)
G) All of the above

Question 16

When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis,this exemplifies a

Accepted Answer

A)  direct investment.
B)  contract manufacturing deal.
C)  cartel.
D)  joint venture.
E)  strategic alliance.F) A) and E)
G) C) and E)

Question 17

When a firm's products are standardized in all countries,

Accepted Answer

A)  advertising cannot be used.
B)  only publicity can be used for promotion.
C)  different ads are illegal.
D)  distribution is more expensive.
E)  advertising may have to be modified.F) B) and E)
G) A) and E)

Question 18

Which countries were merged into one market by NAFTA?

Accepted Answer

A)  Canada,the U.S. ,and Mexico
B)  North America and South America
C)  Mexico,the U.S. ,and Brazil
D)  Canada and the U.S.
E)  Canada and MexicoF) A) and E)
G) A) and B)

Question 19

The Webb-Pomerene Export Trade Act allows selected American firms desiring international trade to form monopolies to compete with foreign cartels.

Accepted Answer

A) True 
 B)False

Question 20

What are the key issues that need to be considered in determining global expansion?

Accepted Answer

Audiotech needs to assess whether there ...

Exam 3: Business in a Borderless World

A trade advantage with the best chance of surviving is one based on

Correct AnswerverifiedShow Answer

Trading companies offer all of the following services except

Correct AnswerverifiedShow Answer

A group of nations or companies that band together to act as a monopoly is known as a

Correct AnswerverifiedShow Answer

Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?

Correct AnswerverifiedShow Answer

The law that allows selected American firms desiring international trade to form monopolies to compete with foreign cartels is the

Correct AnswerverifiedShow Answer

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?

Correct AnswerverifiedShow Answer

Which countries were merged into one market by NAFTA?

Correct AnswerverifiedShow Answer

When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits,this is an example of a

Correct AnswerverifiedShow Answer

Which of the following is not something that the International Monetary Fund does?

Correct AnswerverifiedShow Answer

Globalization refers only to products,not promotion or distribution.

Correct AnswerverifiedShow Answer

Protective tariffs raise the price of foreign goods to allow competition with more expensive domestic goods.

Correct AnswerverifiedShow Answer

The primary problem with a trade deficit is

Correct AnswerverifiedShow Answer

When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis,this exemplifies a

Correct AnswerverifiedShow Answer

Which of the following countries was an original member nation of APEC?

Correct AnswerverifiedShow Answer

In international trade,what is the difference between an absolute advantage and a comparative advantage?

Correct AnswerverifiedAn absolute advantage in trade exists wh...View AnswerShow Answer

When a firm's products are standardized in all countries,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the key issues that need to be considered in determining global expansion?

Correct AnswerverifiedAudiotech needs to assess whether there ...View AnswerShow Answer

A change in administration in a foreign government that is hostile to foreign trade is an example of a

Correct AnswerverifiedShow Answer

The Webb-Pomerene Export Trade Act allows selected American firms desiring international trade to form monopolies to compete with foreign cartels.

Correct AnswerverifiedShow Answer

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An absolute advantage in trade exists wh...
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Audiotech needs to assess whether there ...
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Correct Answer
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