Question 1

Casey is typical of many U.S.businesspeople.Casey feels the U.S.culture defines the model for the rest of the world,and that the "American way" of doing things is the best.Casey is guilty of:

Accepted Answer

A)  ethnic plagiarism.
B)  ethnocentricity.
C)  culture shock.
D)  counter culture.E) All of the above
F) None of the above

Question 2

Explain and provide examples of the difference between comparative and absolute advantage in global markets.

Accepted Answer

Comparative advantage theory states that...

Question 3

As a market for U.S.exports,China represents the only major business opportunity on the continent of Asi
A.

Accepted Answer

A) True 
 B)False

Question 4

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 D)
F) A) and B)

Question 5

Under mercantilism,the basic economic idea was to achieve a favorable balance of trade.

Accepted Answer

A) True 
 B)False

Question 6

Fred Bergsten of the Institute for International Economics estimates that every $1 billion of U.S.exports:

Accepted Answer

A)  replaces 250 service sector jobs with 25 manufacturing jobs in the U.S.
B)  causes lost revenues for the U.S.federal government.
C)  results in reduced profits for U.S.businesses.
D)  generates over 7,000 jobs in the U.S.E) C) and D)
F) B) and D)

Question 7

Products made in Canada are sold in the U.S.because these two nations agree to eliminate economic and political barriers between nations.They participate in free trade.

Accepted Answer

A) True 
 B)False

Question 8

Rhett heard predictions that the value of the U.S.dollar is likely to decline substantially over the next six months.This should:

Accepted Answer

A)  hurt his overseas efforts since his prices will be very high.
B)  stop overseas efforts because dollars will not be negotiable.
C)  help his overseas efforts since his prices will be lower.
D)  force him into accepting no other currency except the dollar.E) A) and D)
F) A) and C)

Question 9

Traders in the 18th century were encouraged to focus on selling their nation's goods in the global market to create a favorable balance of trade.Nations attempted to sell more goods to other nations than they bought from other nations.This approach to global trading is called:

Accepted Answer

A)  Ethnocentrism.
B)  Mercantilism.
C)  Protectionism.
D)  Isolationism.E) C) and D)
F) B) and D)

Question 10

Define offshore outsourcing and explain its pros and cons.

Accepted Answer

Offshore outsourcing is the purchase of ...

Question 11

An advantage of forming a joint venture is:

Accepted Answer

A)  no shared costs or risk.
B)  a perpetual arrangement.
C)  it's a good strategy for entering new markets where you have never had a presence.
D)  it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture.E) None of the above
F) B) and D)

Question 12

Global trade with China is:

Accepted Answer

A)  too risky and not worth the effort.
B)  illegal based on World Trade Organization WTO) rulings.
C)  an emerging business opportunity for several companies.
D)  dependent upon the success of multinational corporations.E) A) and C)
F) A) and B)

Question 13

Kodak contracts with a firm in Taiwan to manufacture Kodak digital cameras.This is an example of a joint venture.

Accepted Answer

A) True 
 B)False

Question 14

If your business has an outstanding product,exporting offers a quick,easy,no hassle way to improve your profitability.

Accepted Answer

A) True 
 B)False

Question 15

__________ is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country.

Accepted Answer

A)  Deflating
B)  Countertrading
C)  Inflating
D)  DumpingE) None of the above
F) All of the above

Question 16

Today,over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.

Accepted Answer

A) True 
 B)False

Question 17

A favorable balance of trade occurs when the value of a country's exports exceeds the value of its exports.

Accepted Answer

A) True 
 B)False

Question 18

A free trade agreement is likely to result in:

Accepted Answer

A)  an increase in imported goods and services.
B)  an absolute advantage.
C)  less competition.
D)  productivity increases in all product categories,for all participating nations.E) A) and B)
F) A) and C)

Question 19

When the U.S.provides foreign aid to Israel and Egypt,a balance of payments outflow occurs.

Accepted Answer

A) True 
 B)False

Question 20

India and Russia are emerging markets that present enormous business opportunities.

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

When the U.S.provides foreign aid to Israel and Egypt,a balance of payments outflow occurs.

Correct AnswerverifiedShow Answer

__________ is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country.

Correct AnswerverifiedShow Answer

A favorable balance of trade occurs when the value of a country's exports exceeds the value of its exports.

Correct AnswerverifiedShow Answer

If your business has an outstanding product,exporting offers a quick,easy,no hassle way to improve your profitability.

Correct AnswerverifiedShow Answer

Explain and provide examples of the difference between comparative and absolute advantage in global markets.

Correct AnswerverifiedComparative advantage theory states that...View AnswerShow Answer

Rhett heard predictions that the value of the U.S.dollar is likely to decline substantially over the next six months.This should:

Correct AnswerverifiedShow Answer

As a market for U.S.exports,China represents the only major business opportunity on the continent of Asi A.

Correct AnswerverifiedShow Answer

Under mercantilism,the basic economic idea was to achieve a favorable balance of trade.

Correct AnswerverifiedShow Answer

Define offshore outsourcing and explain its pros and cons.

Correct AnswerverifiedOffshore outsourcing is the purchase of ...View AnswerShow Answer

The impetus behind trade protectionism is:

Correct AnswerverifiedShow Answer

Kodak contracts with a firm in Taiwan to manufacture Kodak digital cameras.This is an example of a joint venture.

Correct AnswerverifiedShow Answer

Fred Bergsten of the Institute for International Economics estimates that every $1 billion of U.S.exports:

Correct AnswerverifiedShow Answer

Casey is typical of many U.S.businesspeople.Casey feels the U.S.culture defines the model for the rest of the world,and that the "American way" of doing things is the best.Casey is guilty of:

Correct AnswerverifiedShow Answer

A free trade agreement is likely to result in:

Correct AnswerverifiedShow Answer

Traders in the 18th century were encouraged to focus on selling their nation's goods in the global market to create a favorable balance of trade.Nations attempted to sell more goods to other nations than they bought from other nations.This approach to global trading is called:

Correct AnswerverifiedShow Answer

Global trade with China is:

Correct AnswerverifiedShow Answer

Today,over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.

Correct AnswerverifiedShow Answer

An advantage of forming a joint venture is:

Correct AnswerverifiedShow Answer

Products made in Canada are sold in the U.S.because these two nations agree to eliminate economic and political barriers between nations.They participate in free trade.

Correct AnswerverifiedShow Answer

India and Russia are emerging markets that present enormous business opportunities.

Correct AnswerverifiedShow Answer

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Comparative advantage theory states that...
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Offshore outsourcing is the purchase of ...
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Traders in the 18^th century were encouraged to focus on selling their nation's goods in the global market to create a favorable balance of trade.Nations attempted to sell more goods to other nations than they bought from other nations.This approach to global trading is called:

Correct Answer
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Correct Answer
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