Question 1

An absolute advantage exists when a country has a monopoly on a natural resource.

Accepted Answer

A) True 
 B)False

Question 2

What is the primary reason that the owners of Audiotech are considering global expansion?

Accepted Answer

A)   No local interest in the company's products
B)   Stagnating growth
C)   The family is moving abroad
D)   Cheaper labor
E)   Declining salesF) A) and E)
G) None of the above

Question 3

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)

Accepted Answer

A)   quota.
B)   exchange control.
C)   trade deficit.
D)   embargo.
E)   free trade zone.F) None of the above
G) A) and B)

Question 4

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

Accepted Answer

Audiotech needs to assess whether there ...

Question 5

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) A) and C)
G) A) and B)

Question 6

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

Accepted Answer

A) True 
 B)False  True

Question 7

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)   the large amount of export taxes.F) B) and E)
G) All of the above B

Question 8

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on

Accepted Answer

A)   currency.
B)   gold.
C)   the metric system.
D)   bartering.
E)   color coding.F) B) and C)
G) A) and B)

Question 9

McDonald's had to adapt its menus to reflect local preferences in India because

Accepted Answer

A)   Indians do not like hamburgers.
B)   all Indians are vegetarians.
C)   Indians only like to eat diet food.
D)   cows are sacred to many Indians,and many are vegetarians.
E)   McDonald's had a bad reputation before opening franchises in India.F) C) and D)
G) A) and C)

Question 10

Only small firms are mobile enough to engage in international business.

Accepted Answer

A) True 
 B)False

Question 11

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Accepted Answer

A) True 
 B)False

Question 12

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) C) and D)
G) A) and B)

Question 13

A major advantage of utilizing an export agent is that the company does not have to deal with

Accepted Answer

A)   a middleman.
B)   raising prices.
C)   foreign currencies and red tape.
D)   discounts.
E)   increasing volume.F) All of the above
G) C) and E)

Question 14

When a country devalues its currency,this encourages the sale of its

Accepted Answer

A)   imports.
B)   domestic goods to foreign countries.
C)   international goods.
D)   international services.
E)   debts.F) A) and E)
G) B) and C)

Question 15

Why does direct investment have a greater degree of commitment than a countertrade agreement?

Accepted Answer

Countertrade agreements merely involve b...

Question 16

When a nation imports more than it exports,it has a positive balance of trade.

Accepted Answer

A) True 
 B)False  False

Question 17

Globalization involves standardizing products for the whole world as if it were a single entity.

Accepted Answer

A) True 
 B)False

Question 18

The balance of payments includes all the following except

Accepted Answer

A)   a country's balance of trade.
B)   foreign investments.
C)   domestic investments.
D)   tourist expenditures.
E)   foreign aid and military expenditures.F) B) and D)
G) A) and B)

Question 19

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 B)
G) C) and D)

Question 20

Direct investment is the least risky and least expensive way to participate in foreign trade.

Accepted Answer

A) True 
 B)False

Exam 3: Business in a Borderless World

An absolute advantage exists when a country has a monopoly on a natural resource.

Correct AnswerverifiedShow Answer

What is the primary reason that the owners of Audiotech are considering global expansion?

Correct AnswerverifiedShow Answer

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)

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

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

Correct AnswerverifiedShow Answer

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

Correct AnswerverifiedTrue

The primary problem with a trade deficit is

Correct AnswerverifiedB

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on

Correct AnswerverifiedShow Answer

McDonald's had to adapt its menus to reflect local preferences in India because

Correct AnswerverifiedShow Answer

Only small firms are mobile enough to engage in international business.

Correct AnswerverifiedShow Answer

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A major advantage of utilizing an export agent is that the company does not have to deal with

Correct AnswerverifiedShow Answer

When a country devalues its currency,this encourages the sale of its

Correct AnswerverifiedShow Answer

Why does direct investment have a greater degree of commitment than a countertrade agreement?

Correct AnswerverifiedCountertrade agreements merely involve b...View AnswerShow Answer

When a nation imports more than it exports,it has a positive balance of trade.

Correct AnswerverifiedFalse

Globalization involves standardizing products for the whole world as if it were a single entity.

Correct AnswerverifiedShow Answer

The balance of payments includes all the following except

Correct AnswerverifiedShow Answer

Which countries were merged into one market by NAFTA?

Correct AnswerverifiedShow Answer

Direct investment is the least risky and least expensive way to participate in foreign trade.

Correct AnswerverifiedShow Answer

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Audiotech needs to assess whether there ...
View Answer

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True

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B

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Countertrade agreements merely involve b...
View Answer

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False

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