Question 1

The European Union created a single monetary unit to replace the national currencies of eighteen member nations.This new common currency is known as the:

Accepted Answer

A)  e-dollar.
B)  euro.
C)  mark.
D)  pound.E) B) and C)
F) None of the above

Question 2

Many of the toy products sold in Canada are imported from Taiwan because the Taiwanese can produce these products more effectively and efficiently than we can in Canada.This is an example of:

Accepted Answer

A)  a bilateral free trade agreement.
B)  a multilateral resource priority.
C)  the theory of absolute advantage.
D)  the theory of comparative advantage.E) A) and B)
F) C) and D)

Question 3

Trade protectionism is the use of government regulations to encourage the import of goods and services.

Accepted Answer

A) True 
 B)False

Question 4

The three countries participating in NAFTA are:

Accepted Answer

A)  Canada,Mexico,and the United States.
B)  Canada,Nicaragua,and Mexico.
C)  Canada,Panama,and the United States.
D)  Mexico,Panama,and the United States.E) B) and C)
F) C) and D)

Question 5

Which of the following statements best describes the possibilities for small businesses in global markets?

Accepted Answer

A)  Small businesses already dominate global business.In fact,most multinational corporations are actually quite small.
B)  Small businesses are often better prepared to enter global markets than large,bureaucratic corporations.
C)  Small businesses have little chance of competing against giant multinational corporations in global markets.
D)  The main problem faced by small businesses in global markets is that franchise arrangements favoured by small business owners are illegal in most countries.E) B) and D)
F) B) and C)

Question 6

As a business strategy,dumping can be used to:

Accepted Answer

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

Question 7

An exchange rate is the value of one nation's currency relative to the currencies of other nations.

Accepted Answer

A) True 
 B)False

Question 8

The EU debt crisis was triggered by a small number of European countries overspending and over-borrowing.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  negotiate an end to civil wars.
B)  create common market arrangements in specific geographical regions.
C)  establish a set of international property right laws.
D)  facilitate global trade.E) None of the above
F) A) and D)

Question 10

What do franchises have to do to ensure their products are appropriate for the global market they serve? Give an example.

Accepted Answer

Franchisors have to be careful to adapt ...

Question 11

A strategic alliance allows Nike to utilize a German firm to produce their shoes in Europe.

Accepted Answer

A) True 
 B)False

Question 12

A________is a partnership in which companies from two different countries join to undertake a major project.

Accepted Answer

A)  joint venture
B)  franchisee transfer
C)  recruit affiliation
D)  multinational cooperativeE) B) and C)
F) A) and B)

Question 13

The country where a parent firm is located is known as what?

Accepted Answer

A)  Host country
B)  Subsidiary country
C)  Home country
D)  Parent countryE) B) and D)
F) A) and D)

Question 14

Canada has import quotas on a number of products.Give an example of one of those products.What is the purpose of an import quota?

Accepted Answer

Textiles and clothing,agricult...

Question 15

In which of the following products does Canada enjoy a comparative advantage in global trading?

Accepted Answer

A)  Computer chips
B)  Forestry products
C)  Shoes
D)  IPodsE) C) and D)
F) A) and D)

Question 16

Xanadu Enterprises wants to sell its products in the centrally planned economy of North Vietnam,but the Vietnamese government will allow Xanadu entry into its markets only if it enters into a major partnership with Vietnamese producers.The Vietnamese government is requiring Xanadu to enter into a joint venture arrangement.

Accepted Answer

A) True 
 B)False

Question 17

All of the following are objectives of the North American Free Trade Agreement (NAFTA) except:

Accepted Answer

A)  creation of a single currency to compete with the euro.
B)  provision of protection for intellectual property rights.
C)  increment in investment opportunities in each of the member nations.
D)  elimination of trade barriers between member nations.E) None of the above
F) A) and B)

Question 18

In a licensing agreement,who pays for marketing the product?

Accepted Answer

A)  The government
B)  The licensor
C)  The licensee
D)  The franchisorE) C) and D)
F) B) and C)

Question 19

Foreign direct investment refers to the buying of goods produced in another country.

Accepted Answer

A) True 
 B)False

Question 20

For firms interested in global markets,investments in China are considered to be:

Accepted Answer

A)  an emerging business opportunity.
B)  illegal based on World Trade Organization (WTO) rulings.
C)  dependent on Yao Ming's success in the National Basketball Association.
D)  too risky and not worth the effort.E) A) and D)
F) B) and C)

Exam 3: Competing in Global Markets

Many of the toy products sold in Canada are imported from Taiwan because the Taiwanese can produce these products more effectively and efficiently than we can in Canada.This is an example of:

Correct Answer
verified

A________is a partnership in which companies from two different countries join to undertake a major project.

Correct Answer
verified

Canada has import quotas on a number of products.Give an example of one of those products.What is the purpose of an import quota?

Correct Answer
verified
Textiles and clothing,agricult...
View Answer

Foreign direct investment refers to the buying of goods produced in another country.

Correct Answer
verified

The country where a parent firm is located is known as what?

Correct Answer
verified

The three countries participating in NAFTA are:

Correct Answer
verified

A strategic alliance allows Nike to utilize a German firm to produce their shoes in Europe.

Correct Answer
verified

What do franchises have to do to ensure their products are appropriate for the global market they serve? Give an example.

Correct Answer
verified
Franchisors have to be careful to adapt ...
View Answer

In which of the following products does Canada enjoy a comparative advantage in global trading?

Correct Answer
verified

All of the following are objectives of the North American Free Trade Agreement (NAFTA) except:

Correct Answer
verified

Trade protectionism is the use of government regulations to encourage the import of goods and services.

Correct Answer
verified

For firms interested in global markets,investments in China are considered to be:

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements best describes the possibilities for small businesses in global markets?

Correct Answer
verified

As a business strategy,dumping can be used to:

Correct Answer
verified

The European Union created a single monetary unit to replace the national currencies of eighteen member nations.This new common currency is known as the:

Correct Answer
verified

The EU debt crisis was triggered by a small number of European countries overspending and over-borrowing.

Correct Answer
verified

An exchange rate is the value of one nation's currency relative to the currencies of other nations.

Correct Answer
verified

In a licensing agreement,who pays for marketing the product?

Correct Answer
verified

Exam 3: Competing in Global Markets

Many of the toy products sold in Canada are imported from Taiwan because the Taiwanese can produce these products more effectively and efficiently than we can in Canada.This is an example of:

Correct AnswerverifiedShow Answer

A________is a partnership in which companies from two different countries join to undertake a major project.

Correct AnswerverifiedShow Answer

Canada has import quotas on a number of products.Give an example of one of those products.What is the purpose of an import quota?

Correct AnswerverifiedTextiles and clothing,agricult...View AnswerShow Answer

Foreign direct investment refers to the buying of goods produced in another country.

Correct AnswerverifiedShow Answer

The country where a parent firm is located is known as what?

Correct AnswerverifiedShow Answer

The three countries participating in NAFTA are:

Correct AnswerverifiedShow Answer

A strategic alliance allows Nike to utilize a German firm to produce their shoes in Europe.

Correct AnswerverifiedShow Answer

What do franchises have to do to ensure their products are appropriate for the global market they serve? Give an example.

Correct AnswerverifiedFranchisors have to be careful to adapt ...View AnswerShow Answer

In which of the following products does Canada enjoy a comparative advantage in global trading?

Correct AnswerverifiedShow Answer

All of the following are objectives of the North American Free Trade Agreement (NAFTA) except:

Correct AnswerverifiedShow Answer

Trade protectionism is the use of government regulations to encourage the import of goods and services.

Correct AnswerverifiedShow Answer

For firms interested in global markets,investments in China are considered to be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements best describes the possibilities for small businesses in global markets?

Correct AnswerverifiedShow Answer

As a business strategy,dumping can be used to:

Correct AnswerverifiedShow Answer

The European Union created a single monetary unit to replace the national currencies of eighteen member nations.This new common currency is known as the:

Correct AnswerverifiedShow Answer

The EU debt crisis was triggered by a small number of European countries overspending and over-borrowing.

Correct AnswerverifiedShow Answer

An exchange rate is the value of one nation's currency relative to the currencies of other nations.

Correct AnswerverifiedShow Answer

In a licensing agreement,who pays for marketing the product?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Textiles and clothing,agricult...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Franchisors have to be careful to adapt ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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