Question 1

Which of the following companies are based primarily in one country but transact business in other countries?
A)International companies
B)Multinational companies
C)Subsidies
D)Franchises

Accepted Answer

A

Question 2

A direct tax on imports to make them more expensive is known as a __________.
A)tariff
B)embargo
C)subsidy
D)quota

Accepted Answer

A direct tax on imports is known as a tariff. An embargo is a complete ban on trade, a subsidy is a financial assistance given by the government to encourage local production, and a quota is a limit on the quantity of imports allowed.

Question 3

A(n) __________ has ownership in operations in two or more countries.
A)international company
B)global company
C)multinational corporation
D)multicountry company

Accepted Answer

A multinational corporation is a company that has ownership in operations in two or more countries. The term "global company" is often used interchangeably with multinational corporation, but "international company" and "multicountry company" do not necessarily imply ownership in multiple countries.

Question 4

Which of the following replaced the General Agreement on Tariffs and Trade (GATT)?
A)CAFTA-DR
B)NAFTA
C)WTO
D)UNASUR

Accepted Answer

The World Trade Organization (WTO) replaced the General Agreement on Tariffs and Trade (GATT) as the international organization that oversees and regulates global trade. CAFTA-DR (Central American Free Trade Agreement-Dominican Republic), NAFTA (North American Free Trade Agreement), and UNASUR (Union of South American Nations) are all regional trade agreements and organizations that do not replace GATT.

Question 5

Which of the following is not considered to be a trade barrier?
A)Dumping
B)Embargo
C)Quota
D)Tariffs

Accepted Answer

Dumping is not considered to be a trade barrier because it is a practice of exporting goods at a price lower than their normal value in the exporting country, which can potentially harm domestic industries in the importing country. Other options, such as Embargo, Quota, and Tariffs, are all considered to be trade barriers as they restrict and regulate the flow of goods and services between countries.

Question 6

Which trade barrier uses a tax method?
A)Tariffs
B)Quotas
C)Embargos
D)Subsidies

Accepted Answer

Tariffs are taxes on imported products, which can make them more expensive and less competitive in the domestic market.

Question 7

Which of the following refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographical area?
A)Purchasing power
B)Balance of trade
C)Standard of living
D)Exchange rate

Accepted Answer

Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographical area. Purchasing power refers to the amount of goods or services that can be purchased with a unit of currency. Balance of trade refers to the difference between the value of a country's exports and imports. Exchange rate refers to the value of one currency in relation to another.

Question 8

__________ set a limit on the number or volume of a product that can be imported or exported during a set period.
A)Subsidies
B)Tariffs
C)Quotas
D)Embargos

Accepted Answer

Quotas set a limit on the amount of a product that can be imported or exported within a specific time frame. It is usually implemented as a trade policy measure to protect domestic industries, manage the balance of payments, or address political objectives.

Question 9

ASEAN stands for __________.
A)Association of Southeast Asian Nations
B)Association of Standard Ethics in Asian Nations
C)All South East Asian Nations
D)Alliance of Southeastern Asian Nations

Accepted Answer

ASEAN stands for Association of Southeast Asian Nations.

Question 10

A(n) __________ company eliminates artificial geographic boundaries by not having a singular national headquarters.
A)global
B)international
C)subsidiary
D)transnational

Accepted Answer

A transnational company operates in multiple countries and eliminates artificial geographic boundaries by not having a singular national headquarters. This allows for greater flexibility and adaptability in the global market.

Question 11

__________ is the buying and selling of goods and services among different countries.
A)Global networking
B)Global business
C)Global enterprise
D)Global marketing

Accepted Answer

Global business refers to the buying and selling of goods and services among different countries, which involves international trade, foreign investment, and cross-border transactions. Global networking, global enterprise, and global marketing are related concepts but do not fully encapsulate the idea of buying and selling across borders.

Question 12

The __________ is how much of one country's currency one gets for that of another country.
A)balance of trade
B)purchasing power
C)standard of living
D)exchange rate

Accepted Answer

The exchange rate is the value of one currency in terms of another. It is the rate at which one currency can be exchanged for another.

Question 13

Kayla works for Cellular World Company and is based in the United States.During a phone call with one of the company's German engineers, she told them that American engineering and quality was better than German engineering and that they should revise their processes and operations to match those of the plant in America.Kayla is showing __________.
A)parochialism
B)nationalism
C)ethnocentrism
D)protectionism

Accepted Answer

Kayla is exhibiting ethnocentrism by believing that her own culture's engineering and quality is superior to the German engineer's culture.

Question 14

A company selling products in one country at a high profit and selling the products in another country at a loss with intentions of driving out competitors is said to be __________.
A)diversifying
B)protective
C)dumping
D)embargoing

Accepted Answer

Dumping is a practice where a company exports its products to a foreign country at a lower price than the price it sells the same products in its domestic market. The intention of dumping is to price the domestic competitors out of the market in the foreign country. It is considered illegal in many countries and can lead to anti-dumping duties and trade barriers.

Question 15

If Smith and Wesson attempted to sell handguns directly to a distributor in another country and that country wanted to protect their domestic firearms industry, they would most likely be stopped by a(n) __________.
A)embargo
B)quota
C)subsidy
D)tariff

Accepted Answer

The answer of If Smith and Wesson attempted to sell...

Question 16

Which of the following is a company owned and controlled by another company?
A)Multinational
B)Parent company
C)Global company
D)Subsidiary

Accepted Answer

A subsidiary is a company that is owned and controlled by another company, known as the parent company. The parent company holds a controlling interest in the subsidiary, usually by owning at least 50% of its stock. This allows the parent company to influence the subsidiary's operations and decision-making.

Question 17

__________ decrease the supply of products and cause higher prices of imported products.
A)Tariffs
B)Embargos
C)Subsidies
D)Quotas

Accepted Answer

The answer of __________ decrease the supply of products and...

Question 18

Government grants, loans, and tax breaks given to domestic companies are considered to be __________.
A)quotas
B)subsidies
C)tariffs
D)embargos

Accepted Answer

Grants, loans, and tax breaks given to domestic companies are considered to be subsidies.

Question 19

Kayla works for Cellular World Company and has created an ad for the newest version of the U-Phone, using imagery of the American flag and an eagle to convey the idea that the phone gives its users increased freedom.Kayla is based in the United States but developed the ad for use worldwide.Citizens of other countries found the ads offensive and improper.In this scenario, by failing to consider the perspectives of international customers, Kayla was showing __________.
A)parochialism
B)ethnocentrism
C)protectionism
D)nationalism

Accepted Answer

Kayla's use of American symbols in an international ad campaign without considering how they might be perceived by other cultures demonstrates parochialism, which is the tendency to view the world solely through one's own cultural perspective.

Question 20

__________ are a total ban on the importing of a product from one or more countries.
A)Embargos
B)Quotas
C)Subsidies
D)Tariffs

Accepted Answer

Embargos are a total ban on the importing of a product from one or more countries, whereas quotas limit the amount of a product that can be imported. Subsidies are financial assistance given by a government or organization to support a particular industry or activity, and tariffs are taxes on imported goods.

Quiz 3: Managing Diversity in a Global Environment

Which of the following companies are based primarily in one country but transact business in other countries?

A direct tax on imports to make them more expensive is known as a __________.

A(n) __________ has ownership in operations in two or more countries.

Which of the following replaced the General Agreement on Tariffs and Trade (GATT) ?

Which of the following is not considered to be a trade barrier?

Which trade barrier uses a tax method?

Which of the following refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class in a certain geographical area?

__________ set a limit on the number or volume of a product that can be imported or exported during a set period.

ASEAN stands for __________.

A(n) __________ company eliminates artificial geographic boundaries by not having a singular national headquarters.

__________ is the buying and selling of goods and services among different countries.

The __________ is how much of one country's currency one gets for that of another country.

A company selling products in one country at a high profit and selling the products in another country at a loss with intentions of driving out competitors is said to be __________.

If Smith and Wesson attempted to sell handguns directly to a distributor in another country and that country wanted to protect their domestic firearms industry, they would most likely be stopped by a(n) __________.

Which of the following is a company owned and controlled by another company?

__________ decrease the supply of products and cause higher prices of imported products.

Government grants, loans, and tax breaks given to domestic companies are considered to be __________.

__________ are a total ban on the importing of a product from one or more countries.