Question 1

The restrictive standards that detail exactly how a product must be sold in a country are examples of tariff barriers to global trade.

Accepted Answer

A) True 
 B)False

Question 2

Tim Hortons is an example of a Canadian multinational.

Accepted Answer

A) True 
 B)False

Question 3

The OECD has led global efforts to fight corruption.

Accepted Answer

A) True 
 B)False

Question 4

An American firm recently criticized a Chinese steel producer for charging a lower price for their products in Canada than they charge in China.If proven to be true,the Chinese firm has engaged in:

Accepted Answer

A)  industrial protectionism.
B)  dumping.
C)  a low labour cost strategy.
D)  exchange rate manipulation.E) B) and D)
F) A) and C)

Question 5

For a firm to be considered a multinational corporation,all the following conditions must be true except that:

Accepted Answer

A)  all transactions must be financed by the International Monetary Fund.
B)  it must have manufacturing facilities in different countries.
C)  it must have marketing facilities in different countries.
D)  the stock ownership must be multinational.E) C) and D)
F) All of the above

Question 6

NAFTA is an agreement between two countries: Canada and the United States.

Accepted Answer

A) True 
 B)False

Question 7

As a market for Canadian exports,China represents the only major business opportunity for Canadian firms today.

Accepted Answer

A) True 
 B)False

Question 8

A Mexican firm has agreed to trade petroleum to an American importer in return for Canadian made computers.This arrangement is an example of:

Accepted Answer

A)  a non tariff trade.
B)  countertrade.
C)  arbitrage.
D)  a letter of credit arrangement.E) A) and B)
F) A) and C)

Question 9

One reason countries trade with other countries is that even technologically advanced nations cannot produce all the products their people want and need.

Accepted Answer

A) True 
 B)False

Question 10

The World Bank is concerned with lending money to developed nations.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following terms describes a long-term partnership between two or more companies intended to help each firm build competitive market advantages? This arrangement does not call for the firms to share costs,risks,or management.

Accepted Answer

A)  Strategic alliances
B)  Export-trading affiliation
C)  Foreign subsidiaries
D)  Joint ventureE) None of the above
F) A) and C)

Question 12

Hewlett-Packard has established a relationship with Hitachi to help each company build a competitive market advantage.This is an example of a joint venture.

Accepted Answer

A) True 
 B)False

Question 13

Some governments may offer incentives to certain industries to sell goods in global markets for less than they sell them at home.

Accepted Answer

A) True 
 B)False

Question 14

Cartels are all contradictions to unrestricted free trade and letting the market set prices.

Accepted Answer

A) True 
 B)False

Question 15

Foreign investment in a country can be viewed as a sign of strength in the country's economy.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

A favourable balance of trade occurs when the value of a nation's exports exceeds its imports.

Accepted Answer

A) True 
 B)False

Question 18

Comparative advantage theory states that a country should sell to other countries those products that it produces most efficiently and buy from other countries those products it cannot produce as efficiently.

Accepted Answer

A) True 
 B)False

Question 19

is the selling of goods and services to other countries.

Accepted Answer

A)  In-trading
B)  Dumping
C)  Importing
D)  ExportingE) None of the above
F) B) and D)

Question 20

Which of the following statements best describes the theory of comparative advantage?

Accepted Answer

A)  Each nation should produce those goods that it can produce more efficiently than other nations,and buy the goods it cannot produce efficiently from other nations.
B)  A nation should produce those goods for which domestic demand is comparatively strong,and should import those goods for which domestic demand is comparatively weak.
C)  The best way for a nation to ensure full employment is to be totally self-sufficient rather than relying on other nations to obtain goods and services.
D)  The nation that has the largest reserves of gold and other natural resources will enjoy a position of comparative advantage in trade relationships.E) B) and C)
F) A) and B)

Exam 3: Competing in Global Markets

A favourable balance of trade occurs when the value of a nation's exports exceeds its imports.

Correct AnswerverifiedShow Answer

Hewlett-Packard has established a relationship with Hitachi to help each company build a competitive market advantage.This is an example of a joint venture.

Correct AnswerverifiedShow Answer

is the selling of goods and services to other countries.

Correct AnswerverifiedShow Answer

Which of the following terms describes a long-term partnership between two or more companies intended to help each firm build competitive market advantages? This arrangement does not call for the firms to share costs,risks,or management.

Correct AnswerverifiedShow Answer

The restrictive standards that detail exactly how a product must be sold in a country are examples of tariff barriers to global trade.

Correct AnswerverifiedShow Answer

The World Bank is concerned with lending money to developed nations.

Correct AnswerverifiedShow Answer

Some governments may offer incentives to certain industries to sell goods in global markets for less than they sell them at home.

Correct AnswerverifiedShow Answer

As a market for Canadian exports,China represents the only major business opportunity for Canadian firms today.

Correct AnswerverifiedShow Answer

NAFTA is an agreement between two countries: Canada and the United States.

Correct AnswerverifiedShow Answer

For a firm to be considered a multinational corporation,all the following conditions must be true except that:

Correct AnswerverifiedShow Answer

Foreign investment in a country can be viewed as a sign of strength in the country's economy.

Correct AnswerverifiedShow Answer

Comparative advantage theory states that a country should sell to other countries those products that it produces most efficiently and buy from other countries those products it cannot produce as efficiently.

Correct AnswerverifiedShow Answer

Tim Hortons is an example of a Canadian multinational.

Correct AnswerverifiedShow Answer

Which of the following statements best describes the theory of comparative advantage?

Correct AnswerverifiedShow Answer

Cartels are all contradictions to unrestricted free trade and letting the market set prices.

Correct AnswerverifiedShow Answer

One reason countries trade with other countries is that even technologically advanced nations cannot produce all the products their people want and need.

Correct AnswerverifiedShow Answer

An American firm recently criticized a Chinese steel producer for charging a lower price for their products in Canada than they charge in China.If proven to be true,the Chinese firm has engaged in:

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

A Mexican firm has agreed to trade petroleum to an American importer in return for Canadian made computers.This arrangement is an example of:

Correct AnswerverifiedShow Answer

The OECD has led global efforts to fight corruption.

Correct AnswerverifiedShow Answer

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