Question 1

The island nation of Hasalot exports $350 of goods and services and imports $180 of goods and services. Hasalot has an unfavorable balance of trade of $170.

Accepted Answer

A) True 
 B)False

Question 2

The global market is ________ potential customers.

Accepted Answer

A)   over 7 billion
B)   over 300 million
C)   under 200 billion
D)   under 30 billionE) A) and D)
F) A) and C)

Question 3

The purpose of the General Agreement on Tariffs and Trade (GATT)  is to

Accepted Answer

A)   facilitate global trade.
B)   create common market arrangements in specific geographical regions.
C)   negotiate an end to civil wars.
D)   establish a set of international property right laws.E) B) and C)
F) All of the above

Question 4

The U.S. government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Accepted Answer

A) True 
 B)False

Question 5

U.S. recording studios are feeling the pinch in profits due to the fact that artists' music is copied and sold overseas within 24 hours of the music selling in the U.S. market. As a student who is now aware of the challenges businesses face in global trade, which of the following statements do you think is an accurate representation of this situation?

Accepted Answer

A)   The copying and selling of the artist's original music is illegal and enforceable by international copyright law.
B)   The copying and selling of the artist's music is legal due to the fact that are no online copyright laws.
C)   United States copyright laws do not necessarily apply globally.
D)   Copyright laws only protect the artist, but not the recording studios.E) A) and B)
F) None of the above

Question 6

For a firm to be considered a multinational corporation, which of the following conditions must be true?

Accepted Answer

A)   It must have manufacturing facilities and a physical presence in several countries.
B)   Its marketing arm must be based at the company's world corporate headquarters.
C)   Stock ownership must be domestic.
D)   All transactions must be financed by the International Monetary Fund.E) B) and D)
F) All of the above

Question 7

The Foreign Corrupt Practices Act of 1978 created an advantage for American businesspeople to compete in global markets.

Accepted Answer

A) True 
 B)False

Question 8

The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the

Accepted Answer

A)   Foreign Corrupt Practices Act.
B)   Foreign Anti-trust Act.
C)   Multinational Collusion law.
D)   Global Good Conduct law.E) A) and D)
F) A) and C)

Question 9

The World Trade Organization (WTO) was established to mediate trade disputes among nations.

Accepted Answer

A) True 
 B)False

Question 10

________ 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) B) and D)
F) C) and D)

Question 11

Small businesses are less involved in global trade today than in the past.

Accepted Answer

A) True 
 B)False

Question 12

Free trade results in a mutually beneficial exchange between and among nations.

Accepted Answer

A) True 
 B)False

Question 13

________ describes an attitude held by some American businesspeople that American culture is superior to all others.

Accepted Answer

A)   Primary culture
B)   Ethnocentricity
C)   Cultural institutionalism
D)   Social myopiaE) B) and C)
F) A) and B)

Question 14

Halpert Hardware Pros, an American retail store, buys most of its inventory from Asian countries. Halpert Hardware Pros would benefit if the value of the dollar ________ relative to the currencies of the countries from which Halpert imports.

Accepted Answer

A)   rose
B)   fell
C)   remained constant
D)   floated unpredictablyE) B) and D)
F) A) and B)

Question 15

Export trading companies

Accepted Answer

A)   enter into joint ventures with firms wanting to export goods and services.
B)   are government-owned businesses that help companies go global.
C)   connect sellers in the U.S. with buyers in other nations, and help with customs, documentation, and payments.
D)   are similar to a corporation that sells franchises.E) A) and D)
F) All of the above

Question 16

Taubestan produces nearly 97% of the quinoa consumed around the world, and most of it is sold to wealthy nations. Although there are other areas where the seed will grow, including some areas in wealthier nations, the majority of the quinoa sold is imported from Taubestan. This country has a(n)  ________ in the production of quinoa.

Accepted Answer

A)   absolute advantage
B)   comprehensive advantage
C)   comparative advantage
D)   tertiary advantageE) A) and B)
F) B) and C)

Question 17

A fast-growing form of foreign direct investment is ________, which are government-controlled investments in foreign companies.

Accepted Answer

A)   sovereign wealth funds
B)   multinational wealth funds
C)   government mutual funds
D)   government wealth management derivativesE) C) and D)
F) B) and D)

Question 18

Free trade between nations generally results in

Accepted Answer

A)   industrialized nations gaining at the expense of developing nations.
B)   an increase of jobs in developed nations.
C)   mutually beneficial exchange relationships.
D)   higher prices for imported goods.E) None of the above
F) A) and B)

Question 19

Jamieson Brothers, Inc. reported that it owns and operates 189 companies worldwide with 13% of its sales coming from Europe, 38% from Asia, 36% from the U.S., and 13% from other parts of the world. Clearly, Jamieson Brothers is

Accepted Answer

A)   a sovereign wealth fund.
B)   a multinational corporation.
C)   a foreign subsidiary.
D)   an expropriated organization.E) None of the above
F) A) and B)

Question 20

The United States is the largest exporter in the world.

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

Correct Answer
verified

The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the

Correct Answer
verified

A fast-growing form of foreign direct investment is ________, which are government-controlled investments in foreign companies.

Correct Answer
verified

The island nation of Hasalot exports $350 of goods and services and imports $180 of goods and services. Hasalot has an unfavorable balance of trade of $170.

Correct Answer
verified

Free trade results in a mutually beneficial exchange between and among nations.

Correct Answer
verified

For a firm to be considered a multinational corporation, which of the following conditions must be true?

Correct Answer
verified

The World Trade Organization (WTO) was established to mediate trade disputes among nations.

Correct Answer
verified

________ describes an attitude held by some American businesspeople that American culture is superior to all others.

Correct Answer
verified

________ 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 Answer
verified

Correct Answer
verified

The Foreign Corrupt Practices Act of 1978 created an advantage for American businesspeople to compete in global markets.

Correct Answer
verified

The global market is ________ potential customers.

Correct Answer
verified

The purpose of the General Agreement on Tariffs and Trade (GATT) is to

Correct Answer
verified

Export trading companies

Correct Answer
verified

Small businesses are less involved in global trade today than in the past.

Correct Answer
verified

The U.S. government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Correct Answer
verified

Halpert Hardware Pros, an American retail store, buys most of its inventory from Asian countries. Halpert Hardware Pros would benefit if the value of the dollar ________ relative to the currencies of the countries from which Halpert imports.

Correct Answer
verified

Jamieson Brothers, Inc. reported that it owns and operates 189 companies worldwide with 13% of its sales coming from Europe, 38% from Asia, 36% from the U.S., and 13% from other parts of the world. Clearly, Jamieson Brothers is

Correct Answer
verified

Free trade between nations generally results in

Correct Answer
verified

The United States is the largest exporter in the world.

Correct Answer
verified

Exam 3: Doing Business in Global Markets

Correct AnswerverifiedShow Answer

The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the

Correct AnswerverifiedShow Answer

A fast-growing form of foreign direct investment is ________, which are government-controlled investments in foreign companies.

Correct AnswerverifiedShow Answer

The island nation of Hasalot exports $350 of goods and services and imports $180 of goods and services. Hasalot has an unfavorable balance of trade of $170.

Correct AnswerverifiedShow Answer

Free trade results in a mutually beneficial exchange between and among nations.

Correct AnswerverifiedShow Answer

For a firm to be considered a multinational corporation, which of the following conditions must be true?

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO) was established to mediate trade disputes among nations.

Correct AnswerverifiedShow Answer

________ describes an attitude held by some American businesspeople that American culture is superior to all others.

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

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act of 1978 created an advantage for American businesspeople to compete in global markets.

Correct AnswerverifiedShow Answer

The global market is ________ potential customers.

Correct AnswerverifiedShow Answer

The purpose of the General Agreement on Tariffs and Trade (GATT) is to

Correct AnswerverifiedShow Answer

Export trading companies

Correct AnswerverifiedShow Answer

Small businesses are less involved in global trade today than in the past.

Correct AnswerverifiedShow Answer

The U.S. government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Correct AnswerverifiedShow Answer

Halpert Hardware Pros, an American retail store, buys most of its inventory from Asian countries. Halpert Hardware Pros would benefit if the value of the dollar ________ relative to the currencies of the countries from which Halpert imports.

Correct AnswerverifiedShow Answer

Jamieson Brothers, Inc. reported that it owns and operates 189 companies worldwide with 13% of its sales coming from Europe, 38% from Asia, 36% from the U.S., and 13% from other parts of the world. Clearly, Jamieson Brothers is

Correct AnswerverifiedShow Answer

Free trade between nations generally results in

Correct AnswerverifiedShow Answer

The United States is the largest exporter in the world.

Correct AnswerverifiedShow Answer

Correct Answer
verified

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