Question 1

​Apple is an example of a company that makes products using international resources.This company is an example of international

Accepted Answer

A)   ​interconnectedness and independence.
B)   ​cooperation.
C)   ​friction.
D)   ​economic derailing.E) C) and D)
F) All of the above

Question 2

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica,Germany has

Accepted Answer

A)   an overall favorable balance of trade.
B)   an overall unfavorable balance of trade.
C)   a favorable balance of trade with Jamaica.
D)   neither a favorable nor an unfavorable balance of trade with Jamaica.
E)   an unfavorable balance of trade with Jamaica.F) A) and D)
G) C) and D)

Question 3

Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?

Accepted Answer

A)   He would argue that by encouraging competition with trade restrictions,prices are likely to decrease.
B)   He would argue that restrictions would cause greater competition and therefore lead to higher prices.
C)   He would say that trade restrictions have no impact on prices,but they do restrict consumers' choices.
D)   He would say that restrictions reduce competition and therefore cause an increase in prices.
E)   He would argue that trade restrictions increase prices because they break up domestic monopolies.F) A) and E)
G) C) and D)

Question 4

How was the World Trade Organization (WTO)created? Why was it established?

Accepted Answer

The World Trade Organization (WTO)was cr...

Question 5

The New United Motor Manufacturing,Inc.,formed by Toyota and General Motors to make cars,is an example of a(n)

Accepted Answer

A)   strategic alliance.
B)   licensing agreement.
C)   exporting agency.
D)   trading company.
E)   countertrade.F) C) and E)
G) D) and E)

Question 6

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following represents the highest level of involvement in international business?

Accepted Answer

A)   Strategic alliance
B)   Totally owned facilities
C)   Multinational firm
D)   Joint ventures
E)   ExportingF) None of the above
G) B) and E)

Question 8

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Accepted Answer

A) True 
 B)False

Question 9

Devaluation increases the cost of foreign goods,while it decreases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 10

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n) ____ agreement.

Accepted Answer

A)   exporting
B)   strategic alliance
C)   licensing
D)   countertrade
E)   bill of ladingF) B) and D)
G) B) and C)

Question 11

During a stormy meeting of computer software firms,several company presidents said that without tariff cushions,many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Accepted Answer

A)   infant-industry argument.
B)   goal of equalizing the nation's balance of payments.
C)   national self-sufficiency argument.
D)   goal of protecting the health of citizens.
E)   goals of retaliating for another nation's trade restrictions.F) All of the above
G) A) and E)

Question 12

U.S.exports to developing and newly industrialized countries

Accepted Answer

A)   have remained stable.
B)   have declined in recent years.
C)   are on the rise.
D)   are prohibited by the U.S.government.
E)   were scheduled to begin in 2009.F) A) and C)
G) B) and D)

Question 13

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 14

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A)   embargo.
B)   stoppage.
C)   stay.
D)   closure.
E)   barricade.F) A) and D)
G) C) and E)

Question 15

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Accepted Answer

A)   A multilateral development bank
B)   The International Development Bank
C)   An international bank
D)   The Federal Reserve
E)   The International Monetary FundF) A) and D)
G) D) and E)

Question 16

Thomas Bernerd,Inc.Thomas Bernerd,Inc.,manufactures and sells reclining furniture.The company currently operates in the United States but wishes to expand overseas.The company managers have been contemplating the best way to enter the foreign market.At first,the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty.The managers recognized,however,that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market.As such,the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.After all the research was completed,the senior managers realized that they wanted to export their product.The managers decided that the transport carrier would notify them when the merchandise was shipped.This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Thomas Bernerd,Inc.Which of the following options is not one of the steps needed for entering an international market?

Accepted Answer

A)   Contact local government to see if taxes on trade can be waived.
B)   Establish an overseas distribution network.
C)   Set export prices and payment terms,methods,and techniques.
D)   Identify key foreign markets for the product.
E)   Identify exportable products.F) None of the above
G) B) and D)

Question 17

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.These are examples of

Accepted Answer

A)   members of the Dow Jones Industrial Average.
B)   global trading companies.
C)   internationally owned facilities.
D)   multinational enterprises.
E)   foreign-domestic corporations.F) A) and B)
G) A) and C)

Question 18

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Accepted Answer

A)   License the company's brand name and products to foreign manufacturers.
B)   Contact Sears World Trade to find foreign consumers.
C)   Open new facilities around the world.
D)   Form a joint venture with a complementary company in a foreign country.
E)   Sell the company's products to an export-import merchant.F) C) and E)
G) None of the above

Question 19

Which of the following scenarios would not be considered international business?

Accepted Answer

A)   A Chinese manufacturer sells toys to a large toy retailer in the United States.
B)   Intel sells its processors to a computer manufacturer in Korea.
C)   A large jewelry store in England purchases its diamonds from DeBeers in South Africa.
D)   A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky.
E)   French companies purchase crude oil from Saudi Arabia.F) A) and B)
G) None of the above

Question 20

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Accepted Answer

A)   exporting.
B)   shipping.
C)   importing.
D)   expelling.
E)   dumping.F) A) and B)
G) C) and E)

Exam 3: Global Business

During a stormy meeting of computer software firms,several company presidents said that without tariff cushions,many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Correct Answer
verified

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Correct Answer
verified

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Correct Answer
verified

Devaluation increases the cost of foreign goods,while it decreases the cost of domestic goods to foreign firms.

Correct Answer
verified

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct Answer
verified

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct Answer
verified

U.S.exports to developing and newly industrialized countries

Correct Answer
verified

Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?

Correct Answer
verified

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Correct Answer
verified

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Correct Answer
verified

Which of the following scenarios would not be considered international business?

Correct Answer
verified

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.These are examples of

Correct Answer
verified

How was the World Trade Organization (WTO)created? Why was it established?

Correct Answer
verified
The World Trade Organization (WTO)was cr...
View Answer

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n) ____ agreement.

Correct Answer
verified

Correct Answer
verified

Which of the following represents the highest level of involvement in international business?

Correct Answer
verified

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Correct Answer
verified

Apple is an example of a company that makes products using international resources.This company is an example of international

Correct Answer
verified

The New United Motor Manufacturing,Inc.,formed by Toyota and General Motors to make cars,is an example of a(n)

Correct Answer
verified

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica,Germany has

Correct Answer
verified

Exam 3: Global Business

During a stormy meeting of computer software firms,several company presidents said that without tariff cushions,many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Correct AnswerverifiedShow Answer

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Correct AnswerverifiedShow Answer

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Correct AnswerverifiedShow Answer

Devaluation increases the cost of foreign goods,while it decreases the cost of domestic goods to foreign firms.

Correct AnswerverifiedShow Answer

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct AnswerverifiedShow Answer

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct AnswerverifiedShow Answer

U.S.exports to developing and newly industrialized countries

Correct AnswerverifiedShow Answer

Franky believes that there should be no trade restrictions for any reason.What effect would Franky say that trade restrictions have on prices?

Correct AnswerverifiedShow Answer

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Correct AnswerverifiedShow Answer

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Correct AnswerverifiedShow Answer

Which of the following scenarios would not be considered international business?

Correct AnswerverifiedShow Answer

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.These are examples of

Correct AnswerverifiedShow Answer

How was the World Trade Organization (WTO)created? Why was it established?

Correct AnswerverifiedThe World Trade Organization (WTO)was cr...View AnswerShow Answer

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n) ____ agreement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following represents the highest level of involvement in international business?

Correct AnswerverifiedShow Answer

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Correct AnswerverifiedShow Answer

​Apple is an example of a company that makes products using international resources.This company is an example of international

Correct AnswerverifiedShow Answer

The New United Motor Manufacturing,Inc.,formed by Toyota and General Motors to make cars,is an example of a(n)

Correct AnswerverifiedShow Answer

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica,Germany has

Correct AnswerverifiedShow Answer

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Correct Answer
verified
The World Trade Organization (WTO)was cr...
View Answer

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verified

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Correct Answer
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Correct Answer
verified

Apple is an example of a company that makes products using international resources.This company is an example of international

Correct Answer
verified

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Correct Answer
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