Question 1

In an effort to protect domestic jobs,some countries will place a limit on the number of certain types of products that can be imported.These limits are called:

Accepted Answer

A)   revenue tariffs.
B)   protective tariffs.
C)   import quotas.
D)   tariffs.E) A) and B)
F) All of the above

Question 2

When foreign firms build production facilities in the United States,they are engaging in:

Accepted Answer

A)   exporting.
B)   foreign direct investment.
C)   importing.
D)   countertrading.E) All of the above
F) A) and D)

Question 3

Labor unions and businesses in the heavy equipment industry have asked the U.S.Congress to place a tax on imported equipment in order to make it more expensive.They hope that this will allow U.S.producers to be more competitive.The U.S.heavy equipment industry appears to be seeking a(n) :

Accepted Answer

A)   injunction.
B)   revenue tariff.
C)   nontariff barrier.
D)   protective tariff.E) A) and D)
F) A) and C)

Question 4

The U.S.government continues to be committed to free-trade agreements,as evidenced by the more recent passage of CAFTA.The future goal of U.S.free trade advocates is:

Accepted Answer

A)   A goal to make South and Central American nations the textile hubs of the world,while U.S.focuses on the advancement of services.
B)   A large free trade area that would include all nations of South and North America.
C)   Unmonitored free trade across all international borders.
D)   Standardized import quotas among participating nations.E) B) and C)
F) A) and B)

Question 5

An influential foreign government official approached your firm requesting a large sum of money.In return for this bribe,the official promises that your firm will receive preferential treatment in future government contracts.You refuse the request,explaining that the _________ Act of the United States prohibits you from making such payments.

Accepted Answer

A)   Federal Trade Commission
B)   Sherman Anti-trust
C)   Foreign Corrupt Practices
D)   Celler-KefauverE) All of the above
F) None of the above

Question 6

Jill works as a flight attendant for an international airline.While in China,it is convenient for Jill to find look-alikes in famous brands of watches,purses,clothing,and golf clubs.In fact,she does her Christmas shopping there and even buys good quality items for auctioning at her son's pre-school events back in the U.S.Jill's actions:

Accepted Answer

A)   Demonstrate a continual problem with product piracy in China.
B)   Demonstrate how expensive it is to trade with China.Persons who travel there are really the only ones who can benefit from China trade.
C)   Demonstrate the low level of economic development in China,and the fact that only tourists can afford to purchase name brand goods in that nation.
D)   Demonstrate the World Trade Organization's encouragement of China to increase its production of counterfeit goods because there is a high demand for these globally.E) A) and B)
F) All of the above

Question 7

One of the purposes of Export Assistance Centers is to:

Accepted Answer

A)   help multinational corporations reach agreements with foreign governments.
B)   provide subsidies to domestic firms hurt by dumping by foreign firms.
C)   provide trade-finance support for small and medium-sized firms involved in direct exporting.
D)   encourage domestic firms to become more competitive by forming keiretsu-like organizations,much like those found in Japan.E) C) and D)
F) A) and B)

Question 8

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

Accepted Answer

A) True 
 B)False

Question 9

Rosa's aunt was taking a cruise to Brazil.She suggested to Rosa that she would be glad to buy her some jewelry while in port in Rio de Janeiro because the exchange rate would be to her benefit.This means:

Accepted Answer

A)   The currency in Rosa's home country is weak against the Brazilian currency.
B)   The currency in Rosa's home country will be almost equal to the Brazilian currency;otherwise it would not be a good exchange.
C)   The currency in Rosa's home country is devalued.
D)   The currency in Rosa's home country has strength against the Brazilian currency.E) B) and C)
F) A) and D)

Question 10

As a business strategy,the strategy behind "dumping" is to ___________.

Accepted Answer

A)   gain a foothold in a new market
B)   better utilize e-commerce opportunities
C)   avoid trade protectionist laws
D)   achieve eligibility for foreign aidE) C) and D)
F) B) and C)

Question 11

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

Accepted Answer

A) True 
 B)False

Question 12

With GDP totaling more than $570 billion,the common market known as COMESCA is:

Accepted Answer

A)   a subset of the Mercosur trading bloc.
B)   a subset of the European Union.
C)   composed of Southern African and Eastern African nations.
D)   composed of Ecuador,San Simeon,Chile,and Argentina.E) None of the above
F) A) and B)

Question 13

While franchising is popular in the United States,it is not an accepted strategy for firms in the global market.

Accepted Answer

A) True 
 B)False

Question 14

Profitable opportunities in global markets are diminishing for small and medium sized businesses.

Accepted Answer

A) True 
 B)False

Question 15

In order to prevent dumping,U.S.law stipulates that foreign firms selling similar products as domestic firms to U.S.customers must charge at least 10% more than what U.S.firms charge.

Accepted Answer

A) True 
 B)False

Question 16

Companies may have several reasons for creating joint ventures.Which of the following statements is one reason why firms may decide to form a joint venture?

Accepted Answer

A)   They may wish to contract manufacture with each other.
B)   They will save time to market if they pool their technological know-how.
C)   These arrangements are always less risky than strategic alliances.
D)   These arrangements avoid the temptation to tap into marketing and management expertise of the parent companies.E) A) and C)
F) None of the above

Question 17

Exporting is the selling of products to another country.

Accepted Answer

A) True 
 B)False

Question 18

American businesspersons often fail to adapt to foreign markets because they feel that American culture is superior to other cultures in the world.

Accepted Answer

A) True 
 B)False

Question 19

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Accepted Answer

A) True 
 B)False

Question 20

One advantage of franchising is that the parent corporation does not need to concern itself with adapting to the culture of another country.

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

One advantage of franchising is that the parent corporation does not need to concern itself with adapting to the culture of another country.

Correct Answer
verified

Exporting is the selling of products to another country.

Correct Answer
verified

Correct Answer
verified

In order to prevent dumping,U.S.law stipulates that foreign firms selling similar products as domestic firms to U.S.customers must charge at least 10% more than what U.S.firms charge.

Correct Answer
verified

While franchising is popular in the United States,it is not an accepted strategy for firms in the global market.

Correct Answer
verified

Correct Answer
verified

Labor unions and businesses in the heavy equipment industry have asked the U.S.Congress to place a tax on imported equipment in order to make it more expensive.They hope that this will allow U.S.producers to be more competitive.The U.S.heavy equipment industry appears to be seeking a(n) :

Correct Answer
verified

With GDP totaling more than $570 billion,the common market known as COMESCA is:

Correct Answer
verified

As a business strategy,the strategy behind "dumping" is to ___________.

Correct Answer
verified

Rosa's aunt was taking a cruise to Brazil.She suggested to Rosa that she would be glad to buy her some jewelry while in port in Rio de Janeiro because the exchange rate would be to her benefit.This means:

Correct Answer
verified

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Correct Answer
verified

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

Correct Answer
verified

The U.S.government continues to be committed to free-trade agreements,as evidenced by the more recent passage of CAFTA.The future goal of U.S.free trade advocates is:

Correct Answer
verified

One of the purposes of Export Assistance Centers is to:

Correct Answer
verified

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

Correct Answer
verified

Profitable opportunities in global markets are diminishing for small and medium sized businesses.

Correct Answer
verified

In an effort to protect domestic jobs,some countries will place a limit on the number of certain types of products that can be imported.These limits are called:

Correct Answer
verified

When foreign firms build production facilities in the United States,they are engaging in:

Correct Answer
verified

American businesspersons often fail to adapt to foreign markets because they feel that American culture is superior to other cultures in the world.

Correct Answer
verified

Companies may have several reasons for creating joint ventures.Which of the following statements is one reason why firms may decide to form a joint venture?

Correct Answer
verified

Exam 3: Doing Business in Global Markets

One advantage of franchising is that the parent corporation does not need to concern itself with adapting to the culture of another country.

Correct AnswerverifiedShow Answer

Exporting is the selling of products to another country.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In order to prevent dumping,U.S.law stipulates that foreign firms selling similar products as domestic firms to U.S.customers must charge at least 10% more than what U.S.firms charge.

Correct AnswerverifiedShow Answer

While franchising is popular in the United States,it is not an accepted strategy for firms in the global market.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labor unions and businesses in the heavy equipment industry have asked the U.S.Congress to place a tax on imported equipment in order to make it more expensive.They hope that this will allow U.S.producers to be more competitive.The U.S.heavy equipment industry appears to be seeking a(n) :

Correct AnswerverifiedShow Answer

With GDP totaling more than $570 billion,the common market known as COMESCA is:

Correct AnswerverifiedShow Answer

As a business strategy,the strategy behind "dumping" is to ___________.

Correct AnswerverifiedShow Answer

Rosa's aunt was taking a cruise to Brazil.She suggested to Rosa that she would be glad to buy her some jewelry while in port in Rio de Janeiro because the exchange rate would be to her benefit.This means:

Correct AnswerverifiedShow Answer

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Correct AnswerverifiedShow Answer

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

Correct AnswerverifiedShow Answer

The U.S.government continues to be committed to free-trade agreements,as evidenced by the more recent passage of CAFTA.The future goal of U.S.free trade advocates is:

Correct AnswerverifiedShow Answer

One of the purposes of Export Assistance Centers is to:

Correct AnswerverifiedShow Answer

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

Correct AnswerverifiedShow Answer

Profitable opportunities in global markets are diminishing for small and medium sized businesses.

Correct AnswerverifiedShow Answer

In an effort to protect domestic jobs,some countries will place a limit on the number of certain types of products that can be imported.These limits are called:

Correct AnswerverifiedShow Answer

When foreign firms build production facilities in the United States,they are engaging in:

Correct AnswerverifiedShow Answer

American businesspersons often fail to adapt to foreign markets because they feel that American culture is superior to other cultures in the world.

Correct AnswerverifiedShow Answer

Companies may have several reasons for creating joint ventures.Which of the following statements is one reason why firms may decide to form a joint venture?

Correct AnswerverifiedShow Answer

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