Question 1

Countries often use trade protectionism measures to protect their domestic industries from foreign competition.

Accepted Answer

A) True 
 B)False

Question 2

________ occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries.

Accepted Answer

A)   Comparative advantage
B)   Absolute advantage
C)   Complete advantage
D)   Dumping advantageE) None of the above
F) A) and D)

Question 3

A "second wave" of offshore outsourcing involves sizable numbers of skilled, well-educated, middle-income workers in service-sector jobs.

Accepted Answer

A) True 
 B)False

Question 4

The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because

Accepted Answer

A)   the yen is gaining strength compared to the U.S. dollar, making it cheaper for Japanese customers to buy American products.
B)   the yen is down against the U.S. dollar, making it cheaper for Japanese customers to buy American products.
C)   it was traditionally against Japanese culture to ride bicycles, so the U.S. bike company would be dealing with a niche market.
D)   the Japanese do not permit foreign direct investment. American companies will make all the bikes in the U.S., which creates more jobs on American soil.E) A) and D)
F) None of the above

Question 5

A(n)  ________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

Accepted Answer

A)   trade cartel
B)   multinational corporation
C)   host company
D)   import trading companyE) C) and D)
F) None of the above

Question 6

Monique's Unique Boutique sells clothing from around the world in the U.S. Monique regularly travels overseas to find the best and most unusual shirts, dresses, and pants that foreign producers have to offer. Monique is a(n)

Accepted Answer

A)   importer.
B)   licensee.
C)   dumper.
D)   exporter.E) B) and D)
F) All of the above

Question 7

U.S. exports boost the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Compare and contrast comparative and absolute advantage in global markets. Provide examples.

Accepted Answer

Comparative advantage theory states that...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The largest importer in the global market today is

Accepted Answer

A)   Japan.
B)   Russia.
C)   Germany.
D)   the United States.E) A) and D)
F) None of the above

Question 12

Though not as specific or formal as tariffs, nontariff barriers can be just as detrimental to free trade.

Accepted Answer

A) True 
 B)False

Question 13

China's one-party political system, its past human rights abuses, and issues related to counterfeiting of products continue to concern some U.S. firms about doing business there.

Accepted Answer

A) True 
 B)False

Question 14

Define offshore outsourcing and explain its pros and cons.

Accepted Answer

Offshore outsourcing is the purchase of ...

Question 15

A major concern voiced by U.S. critics of the North American Free Trade Agreement (NAFTA)  was that it would result in

Accepted Answer

A)   higher prices for consumer goods.
B)   loss of jobs in the U.S. economy.
C)   national security problems.
D)   increased illegal immigration from Mexico.E) B) and D)
F) B) and C)

Question 16

Rhett spoke with a Korean company that said it might be interested in producing his products in their market. They would pay him a royalty for what they sold and would bear all the start-up expenses of this effort. This Korean company is proposing a(n)

Accepted Answer

A)   subsidiary agreement.
B)   joint venture.
C)   export trading company.
D)   licensing agreement.E) All of the above
F) B) and D)

Question 17

The federal government created ________ to help small and medium-sized businesses get involved in exporting.

Accepted Answer

A)   the World Trade Organization
B)   Federal Export Loan Banks
C)   Export Assistance Centers
D)   the Federal Trade Promotion CommissionE) None of the above
F) B) and C)

Question 18

A firm looking to enter a foreign market with a limited investment should consider licensing.

Accepted Answer

A) True 
 B)False

Question 19

Having recently found sources of oil on their own land, the newly established nation of Brotherton enacted a tariff on imported petroleum in order to raise money for their new government. This trade restriction is an example of a ________ tariff.

Accepted Answer

A)   revenue
B)   protective
C)   percentage
D)   fixedE) None of the above
F) B) and C)

Question 20

The value of goods imported into Spain exceeds the value of Spanish exports. This indicates that Spain

Accepted Answer

A)   has an exchange rate decrease.
B)   utilizes high tariffs.
C)   has a budget deficit.
D)   has a trade deficit.E) A) and C)
F) A) and B)

Exam 3: Doing Business in Global Markets

The largest importer in the global market today is

Correct AnswerverifiedShow Answer

A "second wave" of offshore outsourcing involves sizable numbers of skilled, well-educated, middle-income workers in service-sector jobs.

Correct AnswerverifiedShow Answer

Countries often use trade protectionism measures to protect their domestic industries from foreign competition.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The value of goods imported into Spain exceeds the value of Spanish exports. This indicates that Spain

Correct AnswerverifiedShow Answer

Though not as specific or formal as tariffs, nontariff barriers can be just as detrimental to free trade.

Correct AnswerverifiedShow Answer

China's one-party political system, its past human rights abuses, and issues related to counterfeiting of products continue to concern some U.S. firms about doing business there.

Correct AnswerverifiedShow Answer

A firm looking to enter a foreign market with a limited investment should consider licensing.

Correct AnswerverifiedShow Answer

Rhett spoke with a Korean company that said it might be interested in producing his products in their market. They would pay him a royalty for what they sold and would bear all the start-up expenses of this effort. This Korean company is proposing a(n)

Correct AnswerverifiedShow Answer

________ occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries.

Correct AnswerverifiedShow Answer

Define offshore outsourcing and explain its pros and cons.

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

Monique's Unique Boutique sells clothing from around the world in the U.S. Monique regularly travels overseas to find the best and most unusual shirts, dresses, and pants that foreign producers have to offer. Monique is a(n)

Correct AnswerverifiedShow Answer

A(n) ________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

Correct AnswerverifiedShow Answer

A major concern voiced by U.S. critics of the North American Free Trade Agreement (NAFTA) was that it would result in

Correct AnswerverifiedShow Answer

The federal government created ________ to help small and medium-sized businesses get involved in exporting.

Correct AnswerverifiedShow Answer

Having recently found sources of oil on their own land, the newly established nation of Brotherton enacted a tariff on imported petroleum in order to raise money for their new government. This trade restriction is an example of a ________ tariff.

Correct AnswerverifiedShow Answer

The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because

Correct AnswerverifiedShow Answer

U.S. exports boost the U.S. economy.

Correct AnswerverifiedShow Answer

Compare and contrast comparative and absolute advantage in global markets. Provide examples.

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Offshore outsourcing is the purchase of ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Comparative advantage theory states that...
View Answer