Question 1

Which of the following best explains why Japan's economic growth has slowed?

Accepted Answer

Japan's economy has slowed in part due to import restrictions, which have limited competition and stifled innovation in certain industries.

Question 2

Parker Manufacturing is considering relocating its headquarters from its current location in Vancouver, British Columbia. Executives at Parker want the firm to be located with the majority of other MNCs in the world. Which location would be most appropriate?

Accepted Answer

The answer of Parker Manufacturing is considering relocating its headquarters...

Question 3

A policy that encourages economic growth through export expansion is called ________.

Accepted Answer

Export promotion policies aim to increase the volume and value of exports in order to boost economic growth. These policies may include measures such as tax incentives, financial support for exporters, and efforts to improve the quality of export products. Export expansion and export substitution are related policies, but they focus more specifically on increasing the share of exports in the economy or replacing imported goods with domestically produced ones, respectively. Development stimulation is not specific enough to describe a policy related to export growth.

Question 4

Hawthorne Enterprises, an Australian firm, has plans to open a manufacturing facility in France next year. Some executives at the firm are unhappy with this decision, most likely because France ________.

Accepted Answer

The executives at Hawthorne Enterprises are likely unhappy with the decision to open a manufacturing facility in France because France promotes economic nationalism, which can make it difficult for foreign firms to do business in the country. Economic nationalism often involves policies that prioritize domestic companies and industries over foreign ones, which can create barriers to entry and make it harder for foreign firms to compete.

Question 5

ITX Enterprises, an electronics firm, plans to open a new manufacturing facility. Managers are considering building the new plant in Canada. Which of the following is a risk associated with a Canadian expansion?

Accepted Answer

Canada has a history of political instability related to language conflicts between French and English-speaking populations. This could pose a risk for ITX Enterprises if they were to expand their operations there.

Question 6

What region is sometimes called the cradle of civilization?

Accepted Answer

The Middle East is sometimes called the cradle of civilization because many early civilizations, such as Mesopotamia, developed in that region.

Question 7

A policy that attempts to stimulate development of local industry by discouraging imports through tariffs and nontariff barriers is called ________.

Accepted Answer

Import substitution is a strategy aimed at reducing a country's dependence on imports by promoting the production of goods domestically.

Question 8

China possesses the world's largest economy.

Accepted Answer

As of my last update, the United States has the world's largest economy based on nominal GDP, with China ranking second.

Question 9

Brampton Industries has a facility in a country that has been designated by the World Bank as middle-income. Which of the following is the most likely location of Brampton's plant?

Accepted Answer

The answer of Brampton Industries has a facility in a...

Question 10

The currency in which the sale of goods and services is denominated is the invoicing currency.

Accepted Answer

The invoicing currency refers to the currency in which a seller issues an invoice for the sale of goods or services to a buyer. This currency typically represents the agreed-upon price that the buyer will pay for the goods or services.

Question 11

Vandever Enterprises is considering expanding its operations into Asia. Managers at the firm are currently evaluating the income levels of three different Asian countries. Which of the following is LEAST likely to be determined by this analysis?

Accepted Answer

The government's ability to monitor corruption is not directly related to the income levels of citizens.

Question 12

Money sent out of a politically or economically unstable country to one perceived as a safe haven is known as protected capital.

Accepted Answer

Money sent out of a politically or economically unstable country to one perceived as a safe haven is known as flight capital.

Question 13

Which of the following controls the monetary policy for countries that use the euro?

Accepted Answer

The European Central Bank (ECB) controls the monetary policy for countries that use the euro. The ECB is based in Frankfurt, Germany and is responsible for maintaining price stability and making decisions on interest rates and other monetary policy measures for the eurozone countries. The World Bank and the Bank of London do not control monetary policy for the eurozone, and while the German Central Bank is an important central bank within the eurozone, it does not set policy for the entire region.

Question 14

The OECD's 30 members are all classified as high-income countries .

Accepted Answer

The OECD's 30 members are all considered high-income countries based on their gross domestic product (GDP) per capita.

Question 15

Executives at Oswego Enterprises, a U.S. textile company, are discussing the idea of expanding into the Asian market by opening a facility in Hong Kong. Which of the following is NOT a characteristic of Hong Kong?

Accepted Answer

While Hong Kong has a high degree of autonomy from China, it is not completely autonomous as it is a Special Administrative Region of China.

Question 16

Executives at Cornwall Industries, a U.S. firm, are considering expanding into Niger. As a manager at the firm you have been given the task of analyzing the advantages and disadvantages of Niger. Which of the following is the most likely problem associated with expanding into Niger?

Accepted Answer

The answer of Executives at Cornwall Industries, a U.S. firm,...

Question 17

International trade accounts for a major part of the U.S. economy.

Accepted Answer

International trade is significant but not the major part of the U.S. economy, as the U.S. economy is largely driven by domestic consumption.

Question 18

Which of the following religions was not born in the Middle East?

Accepted Answer

Buddhism originated in India and spread to other parts of Asia, but it did not begin in the Middle East. Christianity, Judaism, and Islam all have roots in the Middle East.

Question 19

Export promotion has been successfully applied by all the countries listed below except ________.

Accepted Answer

Taiwan, Hong Kong, and South Korea have all implemented successful export promotion strategies, resulting in a significant increase in their export volumes and economic growth. These countries focused on developing and promoting their export-oriented industries, offering incentives and support to local firms, and enhancing their trade infrastructure. However, Brazil's export performance has been limited, mainly due to factors such as bureaucracy, high taxes, and lack of investment in infrastructure. Therefore, option D is the correct answer.

Question 20

Carter Industries has a garment facility in Guatemala. Which of the following is most likely an issue faced by the firm?

Accepted Answer

Guatemala may face challenges with inadequate educational systems, which can impact the availability of skilled labor for industries like garment manufacturing.

Quiz 2: Global Marketplaces and Business Centers