Question 1

The European Union (EU)bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban encourages consumers in the EU to buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of:

Accepted Answer

The ban on imports of hormone-fed U.S. beef and bioengineered corn and soybeans is a protectionist policy aimed at promoting domestic production and consumption of these products within the EU. It is not related to the rule of protective domain, which is a principle that holds that a sovereign state has jurisdiction over the activities that take place within its borders. Similarly, it is not an example of ethnocentrism or domestic imperialism, as it is not motivated by a belief in the superiority of one's own culture or a desire to extend one's own influence over another country.

Question 2

Those in favour of protectionism would never say that protectionism:

Accepted Answer

Protectionism is a policy aimed at restricting imports from other countries through methods such as tariffs and quotas to protect domestic industries. Therefore, saying it helps reduce tariffs and quotas contradicts the fundamental principle of protectionism, which typically involves implementing or increasing tariffs and quotas to restrict imports.

Question 3

Nine 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, its banks, airlines, customers' offices, and courier services that make sure the diamonds are safely delivered. Most of these are members of the diamond trading bourse in Bombay. According to Michael Porter's theory about national competitive advantage, India's success in the diamond industry is due in part to its:

Accepted Answer

India's success in the diamond industry is due to the presence of related and supporting industries, such as its trading firms, banks, airlines, customers' offices, and courier services, that make sure the diamonds are safely delivered. This is in line with Michael Porter's theory about the importance of a strong and interconnected set of related and supporting industries in creating national competitive advantage.

Question 4

Huge international opportunities await Canadian businesses in emerging markets. The reason for this is that emerging markets are facing________challenges.

Accepted Answer

According to the statement, the emerging markets are facing challenges related to energy, water, and food. Therefore, option B is the best choice. Options A, C, and D do not accurately represent the challenges mentioned in the statement.

Question 5

In April 2001, the Japanese government, under pressure from its farm lobby, slapped government taxes on mushrooms, leeks, and the reeds used in tatami mats that were being imported from China. Japan levied:

Accepted Answer

Tariffs are government taxes on imported goods. This matches the description given in the scenario, where the Japanese government imposed taxes on specific imports from China. Quotas are limits on the quantity of imports, GATT taxes are not a recognized term, and foreign excise taxes are taxes related to specific goods or services.

Question 6

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

Accepted Answer

Michael Porter's theory of national competitive advantage suggests that a firm that has succeeded in intense domestic competition is more likely to succeed in global markets. According to Porter, a strong domestic competitive environment encourages firms to develop unique capabilities and advantages that can be leveraged in global markets. Therefore, statement D is the correct choice. Statements A, B, and C do not reflect Porter's theory of national competitive advantage.

Question 7

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

Accepted Answer

Many major global marketers first succeed in their domestic market before expanding internationally. This allows for the development of strong brand awareness and a proven track record of success before venturing into unfamiliar markets.

Question 8

Which industry in India represents an excellent opportunity for Canadian companies seeking to export their product?

Accepted Answer

The answer of Which industry in India represents an excellent...

Question 9

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

Accepted Answer

Company strategy, structure, and rivalry are represented by quadrant "B" in Michael Porter's diamond.

Question 10

Which of the following is NOT an element of company strategy, structure, and rivalry?

Accepted Answer

The existence of supplier clusters is related to the factor conditions and not directly to the strategy, structure, and rivalry of companies.

Question 11

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

Accepted Answer

Quadrant "A" in Michael Porter's diamond represents factor conditions, which includes natural resources, skilled labor, infrastructure, and technological advancements. These factors contribute to a region's ability to produce and compete in a particular industry. Therefore, the best choice is B, factor conditions.

Question 12

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

Accepted Answer

Quadrant "D" in Michael Porter's Diamond model represents "Related and Supporting Industries." This component of the model emphasizes the importance of domestic suppliers and related industries that are internationally competitive, which can spur innovation and provide cost-effective inputs, thereby enhancing the global competitiveness of firms.

Question 13

Canada's fastest growing exports are services and expertise. This is creating an opportunity for Canada to export services from a variety of resource and
Manufacturing sectors.

Accepted Answer

The answer of Canada's fastest growing exports are services and...

Question 14

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

Accepted Answer

Quadrant "C" represents demand conditions according to Michael Porter's diamond.

Question 15

When Bell, Telus, and Rogers, lobby and petition the Canada government to change the regulation rules with regards to foreign ownership of telecom companies. Bell, Telus, and Rogers are trying to create a veil of _________.

Accepted Answer

Protectionism refers to the practice of protecting domestic industries from foreign competition by imposing tariffs, quotas, or other restrictions on imports. In this case, Bell, Telus, and Rogers are attempting to protect their domestic telecom industry by lobbying for rules that limit foreign ownership.

Question 16

Canada's trade agreements create business opportunities in global markets. They are only the beginning however. Companies have to:

Accepted Answer

While trade agreements create business opportunities, companies still have to adapt to the specific needs of each market to be successful. This involves doing research on the local culture, regulations, and competitors to create products and services that are tailored to that specific market. Just waiting for further trade barriers to be removed or assuming that all products will be in demand in every market is not a viable strategy for success.

Question 17

According to Michael Porter, in most cases a firm that succeeds in global markets has first succeeded in ________competition.

Accepted Answer

Michael Porter's theory of competitive advantage suggests that a firm that succeeds in global markets has first succeeded in intense domestic competition. The firm has developed a strategy that has allowed it to become the leader in its home market and then leveraged this success to expand globally.

Question 18

Canada's major export market is the U.S.A. and while this has been an established relationship for a long time, growing competition is coming from _________.

Accepted Answer

China has been increasingly becoming a major exporter and is competing with Canada's traditional export markets, including the U.S.A.

Question 19

Deregulation in which industry in Mexico represents an excellent opportunity for Canadian companies seeking to export their product?

Accepted Answer

Deregulation in the telecommunications industry in Mexico has created opportunities for Canadian companies to export their products and services.

Question 20

According to economists, protectionism does each of the following except:

Accepted Answer

Protectionism is typically used to limit imports in order to protect domestic industries. Therefore, it would not encourage increased imports in protected industries. The other options are typically cited as potential benefits of protectionism.

Quiz 7: Reaching Global Markets