Deck 4: Competing in World Markets

Question 1

Which of the following are more valued in Europe?

A) bonuses
B) employee benefits
C) business efficiency
D) salary

Answer 1

B

Question 2

Domestically produced goods and services sold in other countries are called

A) international goods.
B) expat.
C) exports.
D) goods.

Answer 2

C

Question 3

Which of the following does not guarantee economic prosperity?

A) low wages
B) lack of products
C) population size
D) development stage

Answer 3

C

Question 4

Which of the following is a social or cultural difference between countries?

A) language
B) values
C) both
D) neither

Question 5

The difference between a nation's imports and its exports is called the

A) balance of trade.
B) exchange rate.
C) balance of payments.
D) budget deficit

Question 6

Which of the following is one area that has no international regulations?

A) oil production
B) the use and protection of water supplies
C) shipping
D) factory conditions

Question 7

The basic systems of communication, transportation and energy facilities are referred to as

A) commanding heights.
B) industry sectors.
C) factors of production.
D) infrastructure.

Question 8

Which of the following is a limit on the amounts of particular products that can be imported?

A) tariff
B) quota
C) embargo
D) exchange control

Question 9

Nations trade:

A) only with smaller countries.
B) in order to avoid domestic taxation.
C) to provide markets for products and access to needed resources.
D) because it increases employment opportunities and guarantees profits.

Question 10

A total ban on importing specific products or a total stop to trading with a particular country is referred to as a(n)

A) quota.
B) tariff.
C) embargo.
D) import restriction.

Question 11

Canada's top export in 2014 was:

A) energy products.
B) food products.
C) consumer goods.
D) forestry products.

Question 12

Business decisions to operate abroad depend on which of the following basic factors of production in the other country?

A) availability of, price and quality of labour
B) capital
C) trade agreements
D) materials

Question 13

A balance-of-payments surplus means that:

A) more money has moved into a country than out of it.
B) exports are larger than imports.
C) imports are greater than exports.
D) more money has gone out of the country than has entered it.

Question 14

________ occurs when there is a drop in a currency's value relative to other currencies or a fixed standard.

A) Exchange rate
B) Payment deficit
C) Imbalance of payments
D) Devaluation

Question 15

Why does Spain have an absolute advantage in growing saffron?

A) Spain has some of the lowest labour rates in the world so the time-consuming harvesting process is less expensive.
B) Treaties limit which country can produce saffron.
C) The spice is relatively inexpensive so other countries are not interested in growing it.
D) Saffron thrives in Spain's climate and soil but does not do as well elsewhere.

Question 16

Taxes, surcharges and duties on foreign products are referred to as:

A) quotas.
B) tariffs.
C) embargos.
D) import restrictions.

Question 17

A country has a(n) ___________ in making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor.

A) trade surplus
B) trade deficit
C) absolute advantage
D) comparative advantage

Question 18

Which of the following is true about exchange rates?

A) Exchange rates are fixed by treaty.
B) Exchange rate changes can quickly create a competitive advantage.
C) Exchange rates do not change much over time.
D) Exchange rates are simpler for currencies such as the Russian ruble.

Question 19

Where does Canada rank on the list of richest countries based on per-capita GDP?

A) 4th
B) 19th
C) 25th
D) 11th

Question 20

The top five nations that Canada trades with are:

A) United States, China, United Kingdom, European Union, and Japan.
B) Mexico, Russia, Spain, Germany, and Ireland.
C) Japan, Korea, United States, Ireland, and Russia.
D) United States, Japan, the Federal Republic of Germany, Russia, and China.

Question 21

Trade restrictions create what kind of barrier to international trade?

A) legal and political
B) economic
C) social
D) cultural

Question 22

Which of the following describes a barter agreement whereby trade between two or more nations involves payment made in the form of local products instead of currency?

A) exchange
B) product trade
C) countertrade
D) licensing

Question 23

In what ways does NAFTA/CUSMA benefit Canada, the United States, and Mexico?

A) It eliminates competition between the countries.
B) The three nations can trade without tariffs or other trade barriers.
C) It created a common currency.
D) Regulations were strengthened in banking and reduced for intellectual property.

Question 24

The _________ has substantially reduced worldwide tariffs and other trade barriers.

A) General Agreement on Tariffs and Trade (GATT)
B) World Bank
C) International Monetary Fund (IMF)
D) World Trade Organization (WTO)

Question 25

What is the second most widely spoken language in the world?

A) Spanish
B) English
C) Mandarin Chinese
D) Hindustani

Question 26

Which organization was formed to lend money to less-developed and developing countries primarily to fund infrastructure projects?

A) World Bank
B) World Trade Organization
C) International Monetary Fund
D) United Nations

Question 27

An organization with many operations and marketing activities outside its home country is a

A) global company.
B) transnational organization.
C) multinational corporation.
D) multicounty company.

Question 28

The ________ was created to promote trade through financial cooperation and eliminate barriers by making short-term loans to member nations.

A) World Bank
B) International Bank
C) International Monetary Fund
D) Global Assistance Fund

Question 29

_____ allows another firm to produce and sell a company's product abroad.

A) A foreign license agreement
B) An international franchise
C) Subcontracting
D) A joint venture

Question 30

Which is the most commonly spoken language in the world?

A) English
B) Hindustani
C) Spanish
D) Mandarin Chinese

Question 31

One example of a free-trade area that is enacted by the United States, Canada, and Mexico is called

A) Common market.
B) North American Free Trade Agreement/CUSMA.
C) Central American Free Trade Agreement.
D) European Union.

Question 32

_______allow companies to partner and share risks, costs, profits, and management with host-country nationals.

A) Franchises
B) Offshoring
C) Multinational corporations
D) Joint ventures

Question 33

The best known example of a common market is the:

A) European Union.
B) North American Free Trade Agreement.
C) Central American Free Trade Agreement.
D) Asia-Pacific Agreement.

Question 34

Which organization was formed to monitor GATT agreements?

A) The International Monetary Fund
B) The World Bank
C) The United Nations
D) The World Trade Organization

Question 35

Bombardier, a Canadian company, sells jetliners in Asia. The jets would be considered _______ in Canada.

A) foreign licensing
B) trade
C) exports
D) direct investment

Question 36

Selling products in other countries at prices below production costs, or below typical prices in the home market, to capture market share from domestic competitors is called

A) lowballing.
B) dumping.
C) penetration pricing.
D) international regulations.

Question 37

Which form of international involvement typically has the least amount of risk?

A) direct investment
B) franchising
C) exporting or importing
D) subcontracting

Question 38

Canadian law forbids Canadian companies from bribing foreign officials, political candidates, or government representatives. This act prescribes fines and jail time.

A) Anti-Corruption Laws
B) Corruption of Foreign Public Officials Act
C) Human Resources Act
D) International regulations

Question 39

Which statement is true about less developed countries?

A) They have little access to imports.
B) Their share of the world population will increase in the coming years.
C) They do not participate in the global marketplace.
D) The size of their populations is enough to create a market for goods and services.

Question 40

The growth in offshoring has resulted in:

A) increased production costs.
B) loss of Canadian jobs.
C) guaranteed quality enhancement.
D) ease in coordinating distribution.

Question 41

This is a business strategy that involves standardized products offered worldwide and sold in similar manner in domestic and foreign markets.

A) multidomestic business strategy
B) global business strategy
C) domesticated marketing
D) common market approach

Question 42

An approach in developing and marketing products to serve different needs and tastes of separate national markets is called a

A) multidomestic business strategy.
B) joint venture.
C) global business strategy.
D) diversified vision.