Deck 7: Understanding and Reaching Global Consumers and Markets

Question 1

Which of the following statements accurately describes the global perspective on world trade?

A) Exports are of significantly greater importance than imports.
B) Imports are of significantly greater importance than exports.
C) Imports and exports should be complementary economic flows: a country's imports affect its exports and exports affect its imports.
D) Exports and imports should always be kept in a state of equilibrium.
E) Imports and exports should be controlled through extensive use of international tariffs, quotas, and other trade regulations.

Answer 1

C

Question 2

Malaysian government recently exchanged 20,000 tons of rice for an equivalent amount of Philippine corn.This is an example of (a)

A) competitive advantage.
B) countertrade.
C) balance of trade.
D) quota.
E) trade feedback.

Answer 2

B

Question 3

percentage of world trade involves countertrade?

A) 5 percent to 10 percent
B) 15 percent to 20 percent
C) 25 percent to 30 percent
D) roughly 50 percent
E) Countertrade is so pervasive that it cannot accurately be calculated.

Answer 3

B

Question 4

established its company primarily with direct telephone-and Internet-based sales.In terms of Dell's global expansion strategy,which of the following statements is most accurate?

A) Dell will continue to use its direct buy strategy but will require all new employees in its sales force to be multilingual.
B) Dell will open "shop-in-a-shop" counters in selected retailers in India where customers can reduce purchase anxiety by using the computers before they buy.
C) Dell will establish call centers in all major international cities so that customers may deal directly with native-born speakers.
D) Dell will issue its own credit card through microfinance-oriented banks, making it possible for customers who would not normally qualify for credit to do so.
E) Dell will maintain the exact same strategies that brought it this far because it sees no reason to "mess with success."

Question 5

what way is Dell's expansion into the global arena a departure from its prior marketing practices?

A) All Dell products were manufactured in the countries within which they were sold.
B) Dell sold its products to emerging markets using the telephone and Internet sales strategy that was so successful in the United States.
C) Dell opened stores in selected retailers in India.
D) Dell sold only laptops in China whereas it sold both desktops and laptops in India due to trade restrictions in China.
E) Dell designed and distributed the same products globally to take advantage of economies of scale.

Question 6

Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them.It accepted payment in oil,which it then sold for cash to pay for media advertising in the United States.This is an example of

A) a quota.
B) countertrade.
C) balance of trade.
D) competitive advantage.
E) a trade feedback effect.

Question 7

Which of the following countries is the world's leading importer?

A) United States
B) China
C) India
D) Germany
E) Japan

Question 8

Which of the following countries is the world's leading exporter?

A) United States
B) China
C) India
D) Germany
E) Japan

Question 9

Which of the following statements about the dynamics of world trade is most accurate?

A) Manufactured goods and commodities account for only 10 percent of world trade.
B) Three-fourths of world trade includes services such as telecommunications, transportation, and banking.
C) World trade will likely exceed $25 trillion by 2015.
D) All nations participate equally in world trade.
E) There is still greater growth potential in developed countries than emerging ones.

Question 10

Countertrade refers to

A) the illegal agreement of one country to buy products exclusively from another.
B) the legal agreement of one country to buy products exclusively with another.
C) the practice of using barter rather than money for making global sales.
D) the sale of industrial goods from a brick and mortar outlet rather than directly from the manufacturer.
E) the use of legal tender in making global sales.

Question 11

established its company primarily with direct telephone-and Internet-based sales.In terms of Dell's global expansion strategy,which of the following statements is most accurate?

A) Dell will sell its computers in "traveling" stores, consisting of custom-made trailers with solar energy panels that will allow them to reach remote marketplaces.
B) Dell will partner with each country's largest department stores and sell its computers in the small appliance department.
C) Dell will issue its own credit card through multinational banks, making it possible for customers who would not normally qualify for credit to do so.
D) Dell will distribute its products through electronics retailers to reach more buyers quickly.
E) Dell will maintain the exact same strategies that brought it this far because it sees no reason to "mess with success."

Question 12

Which global perspective on world trade views exports and imports as complementary economic flows?

A) the balance of trade
B) quotas
C) the trade feedback effect
D) the competitive advantage of nations
E) tariffs

Question 13

Which of the following statements about the dynamics of world trade is most accurate?

A) As the largest international marketer, the United States accounts for 85 percent of world trade.
B) World trade refers exclusively to the exchange of money for goods or services.
C) An estimated 35 percent of world trade involves countertrade.
D) European intratrade is smaller but more powerful than for any of the other world regions.
E) The United States, Western Europe, Canada, China, and Japan together account for more than two-thirds of world trade in manufactured goods and commodities.

Question 14

Tahitian pearl market might never have existed were it not for Salvador Assael,the "pearl king" of the South Seas.Assael got into the pearl business at the end of World War II.Tahiti had thousands of Swiss watches but suddenly had no GIs to buy them.Assael observed that the Japanese were desperate for watches but had no cash,and also,that the Japanese still had a pearl industry.So,Assael oversaw the swapping of watches for pearls,which were then sold to the Australian and U.S.markets.This international barter is an example of

A) a reciprocity agreement.
B) balance of trade.
C) cross-cultural commerce.
D) countertrade.
E) a trade feedback effect.

Question 15

has Dell,Inc.,embarked on a global growth initiative?

A) National sales have decreased.
B) Dell was recently purchased by Lenovo, a major Chinese competitor.
C) There was too much competition in Dell's direct marketing channel.
D) There are fewer restrictions in computer technology outside the United States.
E) Emerging economies offer significant growth potential.

Question 16

Figure 7-1
According to Figure 7-1 above,which of the following countries is the world's leading exporter?

A) United States
B) France
C) China
D) Germany
E) Japan

Question 17

trade feedback effect is one argument for

A) decreasing a nation's exports.
B) free trade agreements.
C) increased tariffs and quotas.
D) international trade associations.
E) decreasing a nation's imports.

Question 18

Figure 7-1
According to Figure 7-1 above,which of the following countries is the world's leading importer?

A) France
B) Germany
C) Japan
D) United States
E) China

Question 19

practice of using barter rather than money for making global sales is referred to as

A) trade balancing.
B) tariffs.
C) the trade feedback effect.
D) countertrade.
E) currency forbearance.

Question 20

Recipco and Tradaq are both companies that connect international companies who want to barter the products they make for the products they need without using cash or credit.Recipco and Tradaq assist international companies in making

A) countertrades.
B) quota exchanges.
C) trading exchanges.
D) balances of trade.
E) WTO trade arrangements.

Question 21

Which of the following statements about world trade flows is most accurate?

A) The United States is tied with China and Japan as the world's leaders in exports.
B) The U.S. percentage share of world exports has shifted downwards over the past 30 years.
C) The United States has maintained a steady percentage share of world imports.
D) The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E) The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.

Question 22

Which of the following statements best describes what has happened to U.S.exports versus imports over the last 30 years?

A) No accurate data have been made available from the WTO for trade imports and exports.
B) The volume of imports and exports has consistently decreased.
C) U.S. imports and U.S. exports have been about equal, indicating balanced trade.
D) U.S. exports have exceeded U.S. imports, indicating a continuing trade surplus.
E) The volume of both U.S. exports and U.S. imports has increased significantly.

Question 23

monetary value of all goods and services produced in a country during one year is referred to as the

A) gross national production.
B) national monetary reserve.
C) gross domestic product.
D) monetary domestic product.
E) annual national product.

Question 24

Which of the following statements about world trade flows is most accurate?

A) The EU (European Union) is the world leader in terms of GDP (gross domestic product).
B) The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.
C) The United States is running a continuing trade surplus because it has the world's largest gross domestic product.
D) The United States' relative role as an exporter remains strong in the area of aerospace.
E) During the past 30 years, the relative position of the United States in terms of GDP has remained stable despite the fact that actual value of products and services has increased.

Question 25

Changes in the products Americans buy and sell,additional jobs,and an improved standard of living are all effects of

A) an increase in imports and an increase of exports.
B) an increase in imports and a decrease in exports.
C) a decrease in imports and a decrease in exports.
D) a state of equilibrium between imports and exports.
E) the reversal of importance between the services sector and the manufacturing sector.

Question 26

Which of the following statements about world trade flows is most accurate?

A) The EU (European Union) is the world leader in terms of GDP (gross domestic product).
B) The relative position of the United States as a supplier to the world has increased despite an absolute growth in exports.
C) The United States' role as a marketplace for the world has increased, especially for automobiles, oil, textiles, and consumer electronics.
D) The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E) The United States' relative role as an exporter changed dramatically when it became a service-oriented economy.

Question 27

difference between the monetary value of a nation's exports and imports is called its

A) countertrade.
B) trade feedback effect.
C) balance of trade.
D) gross domestic product.
E) tariffs.

Question 28

Which of the following statements about world trade flows is most accurate?

A) The United States is the world leader in terms of GDP (gross domestic product).
B) The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.
C) The United States is running a continuing trade surplus because it has the world's largest gross domestic product.
D) The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E) During the past 30 years, the relative position of the United States in terms of GDP has remained stable despite the fact that actual value of products and services has increased.

Question 29

Gross domestic product refers to

A) the monetary value of all goods and services produced by a single manufacturer during one year.
B) the monetary value of all domestic exports of a nation during one year.
C) the monetary value of all goods and services produced in a country during one year.
D) the monetary value of all domestic imports of a nation during one year.
E) the difference between all domestic exports and imports for any nation during the course of one fiscal year.

Question 30

World trade flows to and from the United States reflect __________ for goods and services among nations and industries.

A) demand and supply interdependencies
B) disparities between supply and demand
C) positive and negative synergistic trade
D) a negative currency exchange
E) an ethnocentric bias

Question 31

four largest exporters to the United States are

A) Canada, China, Japan, and Mexico.
B) Japan, Germany, Brazil, and Canada.
C) China, Brazil, Japan, and Germany.
D) Mexico, Argentina, Brazil, and Venezuela.
E) England, Canada, Australia, and New Zealand.

Question 32

China,Japan,and South Korea combine for about _________ percent of the total U.S.balance of trade deficit.

A) 30
B) 50
C) 65
D) 80
E) 95

Question 33

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions; __________; related and supporting industries; and company strategy,structure,and rivalry.

A) demand conditions
B) ethnocentrism
C) barriers to entry
D) governmental regulation
E) suppliers

Question 34

Balance of trade refers to

A) the sum of all a nation's imports and exports.
B) the difference between the monetary value of a nation's exports and imports.
C) the comparison of total exports from one country to another.
D) the difference between projected sales and actual sales for a nation's exports.
E) the state of equilibrium when two neighboring nations participate in countertrade.

Question 35

Which of the following statements about world trade flows is most accurate?

A) China is the world leader in terms of GDP (gross domestic product).
B) The relative position of the United States as a supplier to the world has increased because of an absolute growth in exports.
C) The relative position of the United States as a supplier to the world has diminished despite an absolute growth in exports.
D) The United States' relative role as an exporter has decreased in the area of aerospace during the past five years.
E) It is impossible to compare GDPs of different nations since it is an internal measurement of economic activity.

Question 36

Which of the following statements about world trade flows is most accurate?

A) The United States is tied with China and Japan as the world's leaders in exports.
B) The U.S. percentage share of world exports has shifted upwards over the past 30 years.
C) The United States has maintained a steady percentage share of world imports.
D) The relative position of the United States as a supplier to the world has diminished despite an absolute growth in exports.
E) The United States' relative role as an exporter has decreased in areas of aerospace, chemical, pharmaceutical, and information technology industries within the past five years.

Question 37

Which of the following statements best describes the relationship between the imports into the United States and the exports from the United States during the last 30 years?

A) No accurate data has been made available from the WTO on trade imports and exports.
B) The volume of both imports and exports has consistently decreased.
C) Imports into the United States and exports have been about equal, indicating balanced trade.
D) Exports have exceeded imports, indicating a continuing trade surplus.
E) Imports have exceeded exports, indicating a continuing trade deficit.

Question 38

Michael Porter has identified four key elements in a nation's competitive advantage: __________; demand conditions; related and supporting industries; and company strategy,structure and rivalry.

A) industry composition
B) size of market
C) governmental regulation
D) suppliers
E) factor conditions

Question 39

four largest importers of U.S.goods and services are

A) Japan, Germany, China, and Canada.
B) Canada, China, Japan, and Mexico.
C) China, Brazil, Japan, and Germany.
D) Mexico, Canada, Europe, and China.
E) England, Canada, Australia, and New Zealand.

Question 40

Michael Porter has identified four key elements to explain why some companies and industries succeed globally while others fail.These four elements are collectively referred as

A) the balance of trade wheel.
B) the points of difference effect.
C) the trade feedback effect.
D) the international trade pyramid.
E) the diamond of national competitive advantage.

Question 41

Figure 7-2
According to Michael Porter's diamond in Figure 7-2 above,quadrant "C" represents

A) factor conditions.
B) related and supporting industries.
C) demand conditions.
D) managerial conditions.
E) company strategy, structure, and rivalry.

Question 42

become leaders in the world market,countries need related and supporting industries because

A) collaborative suppliers can generate revenue for further investment.
B) they can eliminate the need to import materials from other countries.
C) clusters of strong suppliers can accelerate innovation.
D) most countries still believe strongly in protectionism.
E) their union lessens financial vulnerability and increases buying power.

Question 43

According to Michael Porter's diamond of national competitive advantage,both the number and sophistication of domestic customers for an industry's product are examples of

A) structural conditions.
B) demand conditions.
C) sociocultural conditions.
D) competitive conditions.
E) factor conditions.

Question 44

out of every 10 diamonds sold in the world pass through India,making diamonds that country's largest export at $6.6 billion a year.One of the reasons for its success is the nation's 2,500 trading firms,banks,airlines,customers' offices,and courier services that make sure the diamonds are safely delivered.According to Michael Porter's theory about national competitive advantage,India's success in the diamond industry is due in part to its

A) company strategy, structure, and rivalry.
B) absence of competition.
C) related and supporting industries.
D) factor conditions.
E) demand conditions.

Question 45

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

A) Clusters of strong suppliers can interfere with entry into a global market.
B) A firm that succeeds in global markets often has first succeeded in its domestic market.
C) A country's natural resources, education, and infrastructure often pose obstacles that cannot be overcome.
D) The first goal of a global marketer is to actively educate a nation's domestic customers.
E) A nation's domestic workforce is more motivated to work for foreign corporations than its own.

Question 46

Figure 7-2
According to Michael Porter's diamond in Figure 7-2 above,quadrant "A" represents

A) factor conditions.
B) related and supporting industries.
C) demand conditions.
D) managerial conditions.
E) company strategy, structure, and rivalry.

Question 47

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions; demand conditions; __________; and company strategy,structure,and rivalry.

A) consumer behavior
B) workforce education and skill levels
C) related and supporting industries
D) governmental regulation
E) ethnocentrism

Question 48

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

A) Clusters of strong suppliers can accelerate innovation.
B) A firm that succeeds in global markets has often left a domestic market because it was too competitive.
C) A country's natural resources, education, and infrastructure can represent obstacles that are often difficult to overcome.
D) The first goal of a global marketer is to actively educate a nation's domestic customers.
E) A nation's domestic workforce is more motivated to work for foreign corporations than its own.

Question 49

Figure 7-2
According to Michael Porter's diamond in Figure 7-2 above,quadrant "B" represents

A) factor conditions.
B) related and supporting industries.
C) demand conditions.
D) managerial conditions.
E) company strategy, structure, and rivalry.

Question 50

Austria has been described as "the very heartland of European coffee culture." These "coffee-knowledgeable" Austrians drink 21.5 liters of coffee per person annually.Starbucks wanted to open coffee houses in Austria and sell Starbucks coffee there.For Starbucks,the Austrian level of coffee-drinking sophistication would be an example of

A) structural conditions.
B) demand conditions.
C) sociocultural conditions.
D) competitive conditions.
E) factor conditions.

Question 51

Italian shoe industry has become a world leader because of intense domestic competition among firms such as Bruno Magli and Rossimoda.According to Michael Porter's theory about national competitive advantage,Italy's success in the shoe industry is due in part to its

A) company strategy, structure, and rivalry.
B) absence of competition.
C) related and supporting industries.
D) factor conditions.
E) demand conditions.

Question 52

Which of the following is an element of related and supporting industries?

A) media exposure of products
B) existence of supplier clusters
C) sophistication of consumers
D) intensity of competition
E) aggregation of markets

Question 53

Which of the following is an example of a demand condition?

A) available natural resources
B) existence of supplier clusters
C) sophistication of consumers
D) intensity of competition
E) competitive wage rates

Question 54

Although there are many factors contributing to the success of major global marketers,a common theme seems to be that they

A) first became involved with a formalized trade organization, such as the WTO.
B) specialized in services rather than consumer goods.
C) employed a multicultural or multinational staff.
D) first succeeded in intense domestic competition.
E) were the largest companies in their industry.

Question 55

day,in a third-class carriage of the express train that runs between Bombay and Ahmadabad,plainly dressed couriers carry precious cargo: diamonds.Rough gems are imported to Bombay from dealers in London,Antwerp,Tel Aviv,and New York.Couriers then take these gems to cutting and polishing centers in Gujarat state and then carry them back to Bombay to be reexported to the world.This system,based on trust,secrecy,and skilled low-cost labor,has worked for half a century.It has helped make India the world's premier center for diamond cutting and polishing.Nine out of every 10 stones sold in the world pass through India,making diamonds that country's largest export.India's ability to use its skilled labor as a resource is an example of what Michael Porter would term

A) structural conditions.
B) demand conditions.
C) factor conditions.
D) competitive conditions.
E) sociocultural conditions.

Question 56

Figure 7-2
According to Michael Porter's diamond in Figure 7-2 above,quadrant "D" represents

A) factor conditions.
B) related and supporting industries.
C) demand conditions.
D) managerial conditions.
E) company strategy, structure, and rivalry.

Question 57

Michael Porter has identified four key elements in a nation's competitive advantage: factor conditions; demand conditions; related and supporting industries; and __________.

A) consumer behavior
B) workforce education and skill levels
C) governmental regulation
D) company strategy, structure, and rivalry
E) suppliers

Question 58

Dutch lead the world in the cut-flower industry because of their research in flower cultivation,packaging,and shipping.Using this knowledge as a resource is an example of what Michael Porter would term

A) structural conditions.
B) demand conditions.
C) sociocultural conditions.
D) competitive conditions.
E) factor conditions.

Question 59

Which of the following is an element of company strategy,structure,and rivalry?

A) sales of companies in an industry
B) size of market
C) number of suppliers
D) intensity of competition
E) number of sophisticated consumers

Question 60

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

A) Clusters of strong suppliers can interfere with entry into a global market.
B) A firm that succeeds in global markets has often left a domestic market because it was too competitive.
C) A country's natural resources, education, and infrastructure can be turned into a competitive advantage.
D) The first goal of a global marketer is to actively educate a nation's domestic customers.
E) A nation's domestic workforce is more motivated to work for foreign corporations than its own.

Question 61

trends in the past decade have significantly influenced the landscape of global marketing.One of them is:

A) an increase in economic protectionism and a decline free trade.
B) a more aggressive attitude towards initiating international tariffs and quota systems.
C) a decrease in most countries' GDPs and a renewal of nationalism.
D) emergence of networked global marketspace.
E) an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.

Question 62

Competitive advantage for global firms grows out of __________,innovation,and change.

A) product quality
B) continuous improvement
C) employment of a multicultural or multinational staff
D) membership in a formalized trade organization
E) market research

Question 63

estimated cost of economic espionage to firms in the United States is estimated to be

A) $10 billion per year.
B) $250 billion per year.
C) $750 billion per year.
D) $900 billion per year.
E) exceeding $1 trillion per year.

Question 64

Economic Espionage Act

A) allows the World Court in The Hague to adjudicate trade disputes on behalf of United Nations' members and requires the home country to impose any penalties.
B) imposes a personal fine on a convicted U.S. citizen of up to $10 million.
C) targets espionage activities that are commonplace in any industry that holds governmental contracts.
D) makes the theft of trade secrets by foreign entities a federal crime in the United States.
E) is well-intended in theory, but is virtually impossible to enforce.

Question 65

trends in the past decade have significantly influenced the landscape of global marketing.One of them is:

A) an increase in economic protectionism and a decline in free trade.
B) a more aggressive attitude towards initiating international tariffs and quota systems.
C) a decrease in most countries' GDPs and a renewal of nationalism.
D) global competition among global companies for global customers.
E) an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.

Question 66

Those in favor of protectionism advocate that protectionism

A) helps reduce tariffs and quotas.
B) encourages the development of domestic industries.
C) encourages economic reliance on foreign countries.
D) creates opportunities for the outsourcing of domestic jobs.
E) creates a more favorable environment for a global economy.

Question 67

Competitive advantage for global firms grows out of continuous improvement,innovation,and __________.

A) accountability
B) change
C) product quality
D) company size
E) location

Question 68

trends in the past decade have significantly influenced the landscape of global marketing.One of them is:

A) an increase in economic protectionism and a decline in free trade.
B) a more aggressive attitude towards initiating international tariffs and quota systems.
C) a decrease in most countries' GDPs and a renewal of nationalism.
D) the formal economic integration and free trade among nations.
E) an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.

Question 69

practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas is referred to as

A) domestic imperialism.
B) protectionism.
C) blocked competition.
D) import taxation.
E) trade restrictions.

Question 70

Protectionism refers to

A) the practice of purchasing products exclusively from a domestic market in order to shore up a nation's economy.
B) the use of tariffs, quotas, and boycotts with the express intention of putting foreign competitors out of business.
C) the practice of shielding one or more sectors of a country's economy from foreign competition through the use of tariffs or quotas.
D) a form of domestic imperialism that holds that only those products manufactured within one's home nation are of sufficient quality to warrant purchase.
E) the practice of purchasing products exclusively from a foreign developing country in order to develop its industries and economic infrastructure.

Question 71

Competitive advantage for global firms grows out of continuous improvement,__________,and change.

A) product quality
B) employment of a multicultural or multinational staff
C) membership in a formalized trade organization
D) market research
E) innovation

Question 72

prescribed penalty for individuals found guilty of the theft of trade secrets is

A) up to 15 years in prison and fines up to $500,000.
B) up to 25 years in prison and fines up to $10 million.
C) life in prison with chance of parole after 25 years.
D) expulsion from the United States and/or revocation of citizenship.
E) 30 years in prison and fines to be determined by the courts.

Question 73

prescribed penalty for agents of foreign governments found guilty of economic espionage is

A) up to 15 years in prison and fines up to $500,000.
B) life in prison with chance of parole after 25 years.
C) 25 years in prison and a $10 million fine.
D) permanent expulsion from the United States.
E) 30 years in prison and fines proportional to the damage caused.

Question 74

trends in the past decade have significantly influenced the landscape of global marketing.One of them is:

A) an increase in most countries' GDPs coupled with an increased degree of consumer ethnocentrism.
B) a significant increase in economic protectionism and a decline in free trade.
C) a more aggressive attitude toward initiating international tariffs and quota systems.
D) a decrease in most countries' GDPs and a renewal of nationalism.
E) a gradual decline in economic protectionism by individual countries.

Question 75

Economic espionage is the clandestine collection of trade secrets or __________.

A) government economic information
B) industrial intelligence
C) proprietary information about competitors
D) government weapons information
E) banking lists

Question 76

According to economists,protectionism

A) protects a nation's political security.
B) encourages economic reliance on foreign countries.
C) inhibits the development of domestic industries.
D) creates opportunities for the outsourcing of domestic jobs.
E) creates a more favorable environment for a global economy.

Question 77

clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as

A) trade piracy.
B) transnational fraud.
C) economic espionage.
D) competitive duplicity.
E) transnational espionage.

Question 78

Figure 7-3
box with the "?" in Figure 7-3 above leads to which of the following as a result of the imposition of tariffs and quotas based on protectionist policies of a country?

A) an increase in world trade
B) a decrease in world trade
C) a limit on exports
D) a limit on imports
E) countertrade

Question 79

Beginning January 1,2005,China lifted the import quotas and lowered tariffs on automobiles.This removal of the quotas and the lowering of tariffs is an example of

A) relaxing the rule of eminent domain.
B) reducing ethnocentrism.
C) enhancing domestic imperialism.
D) reducing protectionism.
E) enhancing countertrade.

Question 80

Which of the following statements reflects Michael Porter's theory regarding national competitive advantage?

A) Clusters of strong suppliers can interfere with entry into a global market.
B) A firm that succeeds in global markets has often left a domestic market because it was too competitive.
C) A country's natural resources, education, and infrastructure can represent obstacles that are often difficult to overcome.
D) Conditions such as the number and sophistication of domestic customers can affect demand for an industry's product.
E) A nation's domestic workforce is more motivated to work for foreign corporations than its own.