Question 1

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Accepted Answer

A strategic alliance involves companies, often from different countries, collaborating by pooling resources, knowledge, and capabilities to achieve mutual goals and benefits, such as entering new markets or developing new products.

Question 2

Centralized decision making allows Wentworth Productions,a multinational film production company,to be more sensitive to local market conditions in other nations.

Accepted Answer

Centralized decision making concentrates decision authority at the higher levels of an organization, which can make it harder for a company to respond quickly and effectively to local market conditions in other nations.

Question 3

Most U.S.companies are attracted to international contract manufacturing,or outsourcing,because of high shipping,material,and marketing costs in the United States.

Accepted Answer

Most U.S. companies are attracted to international contract manufacturing or outsourcing primarily because of lower labor costs, reduced production costs, and sometimes less stringent regulations in other countries, not because of high shipping, material, and marketing costs in the United States.

Question 4

Foreign direct investment,which is generally the most expensive commitment that a company can make to an overseas market,is usually driven by the size and attractiveness of the market.

Accepted Answer

Foreign direct investment (FDI) often represents a significant financial commitment by a company to enter or expand in an overseas market, and decisions to make such investments are typically influenced by the size and attractiveness of the target market, among other factors.

Question 5

A strategic alliance between a U.S.firm and a German firm can result in enhanced marketing efforts,improved products,and the reduction of production and distribution costs.

Accepted Answer

Strategic alliances between firms from different countries, such as a U.S. firm and a German firm, can lead to synergies that enhance marketing efforts, improve products, and reduce production and distribution costs through shared resources, expertise, and market access.

Question 6

If a country buys more goods and services than it sells over a specified period of time,it has a _____.
A)trade surplus
B)trade deficit
C)unfavorable balance of payments
D)favorable balance of trade

Accepted Answer

When a country buys more goods and services than it sells, it is spending more on imports than it is earning from exports, resulting in a trade deficit.

Question 7

When nations continue to experience large and ever-growing trade deficits:
A)they will ultimately produce so much output that other countries will lose domestic jobs.
B)creditor nations will eventually stop taking IOUs and trade will cease.
C)their economy will automatically go bankrupt.
D)their currencies will eventually be worthless.

Accepted Answer

Creditor nations may eventually become reluctant to continue financing a country's trade deficits, fearing that the debtor nation might not be able to repay its debts. This could lead to a cessation of trade as creditor nations refuse to accept more IOUs, seeking to mitigate their risk.

Question 8

Under a franchising agreement between a U.S.
based company and a foreign firm,in return for the rights to use its brand name and sell its products,the U.S.franchiser requires the foreign company to adhere to an established business model.

Accepted Answer

In a franchising agreement, the franchiser (in this case, the U.S. based company) grants the franchisee (the foreign firm) the rights to use its brand name and sell its products or services, in return for adherence to an established business model and usually a fee. This model ensures consistency in brand experience and quality across different locations.

Question 9

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years,the stability of its _____ may be in jeopardy.
A)government
B)economy
C)currency
D)international relations

Accepted Answer

An unfavorable balance of payments can lead to a depletion of foreign reserves, which can destabilize a country's currency.

Question 10

The country of East Anglia exports domestically made products and imports products that aren't available locally.When exports are compared to imports,the resulting _____,which shows that more dollar value is exported than imported,reveals a(n)_____.
A)balance of payments / trade deficit
B)balance of trade / trade deficit
C)balance of trade / trade surplus
D)balance of payments / accounting crisis

Accepted Answer

The correct term for comparing exports to imports in terms of dollar value is "balance of trade," and when a country exports more than it imports, it is referred to as having a "trade surplus."

Question 11

Generally speaking,nations tend to _____.
A)exploit their production and trade advantages
B)benefit from specialization
C)trade their output based on what they do best
D)do all of these things

Accepted Answer

Nations generally exploit their production and trade advantages, benefit from specialization, and trade their output based on what they do best, as these strategies lead to more efficient resource use and economic gains.

Question 12

Under an international licensing agreement,a foreign company pays a royalty fee to manufacture or sell your U.S.?
made products in its own country,using your name and your processes and perhaps your intellectual property.

Accepted Answer

In an international licensing agreement, a foreign company indeed pays a royalty fee to a domestic company for the rights to manufacture or sell the domestic company's products in the foreign company's country. This agreement often includes the use of the domestic company's name, processes, and intellectual property.

Question 13

It is parents' weekend and your parents will arrive at your dorm in an hour.There are two tasks left to be done: washing the dishes and vacuuming.You and your roommate have agreed to divide up the work.In the past,you have been able to do the dishes in 30 minutes and vacuum in 15 minutes.Your roommate takes 40 minutes to do the dishes and 60 minutes to vacuum.Based on this scenario:
A)you have an absolute advantage in both jobs and a comparative advantage in doing dishes.
B)your roommate has an absolute advantage in doing dishes and a comparative advantage in vacuuming.
C)you have an absolute advantage in both jobs and a comparative advantage in vacuuming.
D)neither of you has an absolute advantage in either tasks,and you have a comparative advantage in vacuuming.

Accepted Answer

The answer of It is parents' weekend and your parents...

Question 14

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n)____ advantage.
A)comparative
B)resource/input
C)absolute
D)hard-core technological

Accepted Answer

Cretonia has an absolute advantage in producing zhytan as it is the only source, and Fredonte has an absolute advantage in producing creosote as it can produce twice as much with the same resources.

Question 15

Although Fitness Esteem Products has formed a foreign subsidiary,the only two advantages that it can expect from this strategy are full access to local markets and tight controls over subsidiary operations.

Accepted Answer

Forming a foreign subsidiary can offer a range of advantages beyond full access to local markets and tight controls over subsidiary operations, such as tax benefits, closer proximity to customers, local market insights, and potentially lower labor costs.

Question 16

Having set up factories,sales offices,and branch stores in several foreign nations,U.S.
based Crenco has gone global through a form of expansion called a "joint venture."

Accepted Answer

Crenco has gone global through a form of expansion called "direct investment," which involves setting up factories, sales offices, and branch stores in foreign nations. A "joint venture" refers to a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, which is not described in the scenario provided.

Question 17

Many multinational corporations (MNCs)have adopted the motto "Think globally and act locally."

Accepted Answer

This motto reflects the strategy of adapting global business practices to fit local cultures, regulations, and market needs, allowing MNCs to effectively operate and compete in diverse environments.

Question 18

Japan's production and exporting expertise lies in the areas of _____.
A)electronics and automobiles
B)industrial goods and airplane parts
C)business services and computer encryption
D)soy products and plastic goods

Accepted Answer

Japan is renowned for its production and exporting of electronics and automobiles, with many globally recognized brands in these sectors.

Question 19

The difference between a country's total outflows and inflows of money over a period of time is its _____.
A)balance of payments
B)balance of trade
C)domestic fluctuation
D)international trade balance

Accepted Answer

The balance of payments is a comprehensive record of a country's total outflows and inflows of money over a period of time, encompassing all transactions between its residents and the rest of the world.

Question 20

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Accepted Answer

Strategic alliances can vary widely in their scope and nature, including informal partnerships where companies cooperate in certain areas, to more formal arrangements like joint ventures where two or more companies create a separate business entity to pursue shared objectives.

Quiz 9: Business in a Global Environment

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Centralized decision making allows Wentworth Productions,a multinational film production company,to be more sensitive to local market conditions in other nations.

Most U.S.companies are attracted to international contract manufacturing,or outsourcing,because of high shipping,material,and marketing costs in the United States.

Foreign direct investment,which is generally the most expensive commitment that a company can make to an overseas market,is usually driven by the size and attractiveness of the market.

A strategic alliance between a U.S.firm and a German firm can result in enhanced marketing efforts,improved products,and the reduction of production and distribution costs.

If a country buys more goods and services than it sells over a specified period of time,it has a _____.

When nations continue to experience large and ever-growing trade deficits:

Under a franchising agreement between a U.S. based company and a foreign firm,in return for the rights to use its brand name and sell its products,the U.S.franchiser requires the foreign company to adhere to an established business model.

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years,the stability of its _____ may be in jeopardy.

The country of East Anglia exports domestically made products and imports products that aren't available locally.When exports are compared to imports,the resulting _,which shows that more dollar value is exported than imported,reveals a(n) _.

Generally speaking,nations tend to _____.

Under an international licensing agreement,a foreign company pays a royalty fee to manufacture or sell your U.S.? made products in its own country,using your name and your processes and perhaps your intellectual property.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n) ____ advantage.

Although Fitness Esteem Products has formed a foreign subsidiary,the only two advantages that it can expect from this strategy are full access to local markets and tight controls over subsidiary operations.

Having set up factories,sales offices,and branch stores in several foreign nations,U.S. based Crenco has gone global through a form of expansion called a "joint venture."

Many multinational corporations (MNCs)have adopted the motto "Think globally and act locally."

Japan's production and exporting expertise lies in the areas of _____.

The difference between a country's total outflows and inflows of money over a period of time is its _____.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Quiz 9: Business in a Global Environment

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Centralized decision making allows Wentworth Productions,a multinational film production company,to be more sensitive to local market conditions in other nations.

Most U.S.companies are attracted to international contract manufacturing,or outsourcing,because of high shipping,material,and marketing costs in the United States.

Foreign direct investment,which is generally the most expensive commitment that a company can make to an overseas market,is usually driven by the size and attractiveness of the market.

A strategic alliance between a U.S.firm and a German firm can result in enhanced marketing efforts,improved products,and the reduction of production and distribution costs.

If a country buys more goods and services than it sells over a specified period of time,it has a _____.

When nations continue to experience large and ever-growing trade deficits:

Under a franchising agreement between a U.S. based company and a foreign firm,in return for the rights to use its brand name and sell its products,the U.S.franchiser requires the foreign company to adhere to an established business model.

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years,the stability of its _____ may be in jeopardy.

The country of East Anglia exports domestically made products and imports products that aren't available locally.When exports are compared to imports,the resulting _____,which shows that more dollar value is exported than imported,reveals a(n) _____.

Generally speaking,nations tend to _____.

Under an international licensing agreement,a foreign company pays a royalty fee to manufacture or sell your U.S.? made products in its own country,using your name and your processes and perhaps your intellectual property.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors.The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources.Both nations enjoy a(n) ____ advantage.

Although Fitness Esteem Products has formed a foreign subsidiary,the only two advantages that it can expect from this strategy are full access to local markets and tight controls over subsidiary operations.

Having set up factories,sales offices,and branch stores in several foreign nations,U.S. based Crenco has gone global through a form of expansion called a "joint venture."

Many multinational corporations (MNCs)have adopted the motto "Think globally and act locally."

Japan's production and exporting expertise lies in the areas of _____.

The difference between a country's total outflows and inflows of money over a period of time is its _____.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

The country of East Anglia exports domestically made products and imports products that aren't available locally.When exports are compared to imports,the resulting _,which shows that more dollar value is exported than imported,reveals a(n) _.