Question 1

In some countries,it may be legal to bribe businesses and government officials,but this practice is illegal in Canada.This barrier to international trade is known as
A)imposing tariffs.
B)quotas.
C)local content laws.
D)business practice laws.
E)cartelling.

Accepted Answer

Bribing businesses and government officials is considered an illegal business practice in Canada. This can act as a barrier to international trade for companies from countries where bribery may be legal.

Question 2

Canada prohibits the importing of ivory from any foreign nation.This is a(n)
A)local content law.
B)subsidy.
C)tariff.
D)quota.
E)embargo.

Accepted Answer

An embargo is a government-imposed restriction on trade with a particular country or in a particular product. In this case, Canada has imposed an embargo on the import of ivory from any foreign nation.

Question 3

Sometimes foreign companies have many problems in complying with stringent and often changing regulations and bureaucratic obstacles known as
A)business practice laws.
B)cartels.
C)dumping.
D)local content laws.
E)local practices.

Accepted Answer

The answer of Sometimes foreign companies have many problems in...

Question 4

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?
A)Independent agent
B)Licensing agreement
C)Foreign direct investment
D)Branch office
E)Strategic alliance

Accepted Answer

If Montrose Corp. purchases tangible assets in Germany, it is engaging in foreign direct investment, which involves direct ownership and control of assets in a foreign country.

Question 5

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)
A)subsidy.
B)local content law.
C)quota.
D)embargo.
E)tariff.

Accepted Answer

A tax of $1.00 per unit is known as a tariff.

Question 6

In marketing a new product in a foreign nation,Mega Computer was surprised to see the very low prices of its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n)________ is.
A)subsidy
B)tariff
C)embargo
D)local content law
E)quota

Accepted Answer

A subsidy is financial assistance provided by the government to local businesses, allowing them to offer lower prices than foreign competitors.

Question 7

If the Mexican government puts a limit on the ounces of tequila being imported into Mexico,what has occurred?
A)The government has installed a protection plan for its own tequila producers and is encouraging imports.
B)The government has installed both a protection plan for its own tequila producers and a quota.
C)The government has installed a quota and an embargo.
D)The government is encouraging imports and installed an embargo.
E)The government installed an embargo and a protection plan.

Accepted Answer

The Mexican government has installed both a protection plan for its own tequila producers and a quota by limiting the amount of tequila being imported into the country.

Question 8

International trade improves peoples' standard of living,yet countries often put up trade barriers? Why is this?
A)Goods that are imported compete with domestic products and put pressure on domestic businesses.
B)The quality of imported products is usually lower than the quality of domestically produced products.
C)Generating government revenue is often more economically valuable than free trade.
D)It is an effort to keep a country's currency strong.
E)International trade causes political tensions to develop.

Accepted Answer

Domestic businesses may feel threatened by foreign competition and may pressure their government to put up trade barriers to protect their industries. However, this ultimately harms consumers by limiting their choices and increasing prices.

Question 9

Which of the following is correct with regard to social and cultural differences?
A)Canadians make fewer trips to supermarkets than Europeans do.
B)Most differences between cultures are pretty obvious.
C)Clothing manufacturers do not have to worry too much about cultural differences because fashion trends have rapidly become worldwide.
D)Countries with growing populations tend to have a disproportionate number of older people.
E)All of these are correct.

Accepted Answer

This statement presents a specific difference between Canadians and Europeans in regards to their shopping habits, and is therefore a correct statement.

Answer: B is incorrect because not all cultural differences are obvious and may require deeper understanding and research.

Answer: C is incorrect because cultural differences can greatly influence fashion trends, such as modesty and color preferences in different regions.

Answer: D is incorrect as it presents a different topic not related to social and cultural differences.

Therefore, the correct answer is A.

Question 10

Arguments for and against protectionism include all of the following except
A)tariffs and quotas protect domestic firms and jobs.
B)tariffs and quotas reduce competition and drive up prices.
C)tariffs and quotas adversely affect the exchange rate.
D)that while some jobs and industries would be protected with tariffs and quotas,all countries would be better off without them as jobs in other industries would expand.
E)tariffs and quotas are in response to actions of other governments.

Accepted Answer

The other four choices are arguments for or against protectionism, while choice C simply states a potential consequence of protectionist policies.

Question 11

Investment Canada's mandate is
A)to focus on the promotion of Canadian goods to other countries.
B)to focus on attracting foreign investment to Canada.
C)to track investment money to overseas banks.
D)to focus on aiding Canadian businesses in collecting money from their customers in foreign countries.
E)to promote the investment of Canadian dollars into foreign business operations.

Accepted Answer

Investment Canada's mandate is to review foreign investment transactions to determine whether they are of net benefit to Canada, and to promote and facilitate foreign investment in Canada. Therefore, option B, "to focus on attracting foreign investment to Canada," is the correct answer.

Question 12

Many governments require that products sold in their country be at least partly made there.This policy involves ________ laws.
A)quota
B)local content
C)business practice
D)free trade
E)subsidy

Accepted Answer

Local content laws require that a certain percentage of a product be made domestically, promoting local industry and employment.

Question 13

When Bob began exporting his famous barbecue beef,he found that one country would let him bring only 1000 pounds of beef into the country each year.Bob had just discovered a(n)
A)embargo.
B)local content law.
C)quota.
D)tariff.
E)subsidy.

Accepted Answer

A quota is a limit on the quantity of a product that can be imported or exported to a country. In this case, Bob is only allowed to bring 1000 pounds of beef into the country each year, indicating the presence of a quota. Embargo refers to a complete ban on trade with a particular country, while local content law, tariff, and subsidy are not relevant to the given scenario.

Question 14

Associations of producers that control supply and prices are called
A)cartels.
B)foreign direct investments.
C)business offices.
D)quotas.
E)independent agents.

Accepted Answer

Cartels are groups of producers who come together to control the supply and prices of a particular product or service, usually to their advantage.

Question 15

Selling a product abroad for less than the cost of production is referred to as
A)direct foreign investment.
B)setting up a business office.
C)dumping.
D)imposing tariffs.
E)setting up quotas.

Accepted Answer

Selling a product abroad for less than the cost of production is known as dumping. This can harm domestic industries and can be considered illegal under international trade laws.

Question 16

Which of the following statements best describes the effects of subsidies?
A)A subsidy essentially lowers the prices of foreign goods rather than raising the prices of domestic goods.
B)A subsidy essentially raises the prices of domestic goods rather than lowering the prices of foreign goods.
C)A subsidy essentially lowers the prices of domestic goods rather than raising the prices of foreign goods.
D)A subsidy essentially raises the prices of foreign goods while also raising the prices of domestic goods.
E)A subsidy essentially lowers the prices of foreign goods while also lowering the prices of domestic goods.

Accepted Answer

A subsidy is a form of financial assistance given by the government to producers or consumers of certain goods or services. The goal of a subsidy is to encourage production, consumption, or investment in a particular industry. By providing financial assistance to domestic producers, a subsidy reduces their cost of production, which can lead to lower prices for consumers. This, in turn, can make domestic goods more attractive to consumers than foreign goods, which may be more expensive due to tariffs or other trade barriers. Therefore, a subsidy tends to lower the prices of domestic goods rather than raising the prices of foreign goods.

Question 17

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?
A)Consumers shopping on a daily basis
B)A younger population
C)An older population
D)Adjusted menus,ingredients,and hours of operation
E)Consumers that are shorter and slimmer than Canadian consumers

Accepted Answer

European consumers often shop more frequently, sometimes daily, due to smaller living spaces and refrigerators, which can affect purchasing patterns for appliances like refrigerators.

Question 18

Local content laws state that
A)products sold in a country should be at least partially made in that country.
B)an imported product must meet local standards before it can be brought in.
C)an imported product must include some raw materials from the domestic country.
D)an imported product must fit with the local culture before it can be brought in.
E)an imported product must abide by local bylaws before it can be brought in.

Accepted Answer

Local content laws require that products sold in a country should be at least partially made in that country. This is to promote local manufacturing and protect domestic industries from increased competition from imports.

Question 19

Which of the following is correct regarding the barriers to international trade?
A)Research clearly demonstrates that differences in culture are the most important barrier.
B)The two general categories where barriers exist are in command and market economies.
C)An embargo is an extreme form of a tariff.
D)Local content laws apply only to situations across international borders.
E)When Google agreed to pay $500 million to settle a case with the U.S.government over advertising revenue earned from Canadian online pharmacies,this was an example of business practice laws being violated.

Accepted Answer

Local content laws, embargoes, tariffs, and the distinction between command and market economies are all relevant to international trade barriers, but none of these options are described accurately in the choices provided. However, the case of Google agreeing to pay $500 million to settle a case with the U.S. government over advertising revenue earned from Canadian online pharmacies is an example of business practice laws being violated, which can be a barrier to international trade. This demonstrates how legal and regulatory frameworks can impact international business operations.

Question 20

Licensing arrangements are arrangements
A)by a creator of a musical or artistic work to allow another person to use,produce,distribute,or market it for a fee or royalty.
B)by a supplier to allow another company the right to install or modify products produced by the supplier for a fee or royalty.
C)by a general contractor to allow international subcontractors to build a building for a fee or royalty.
D)by an owner of a process or product to allow another business to produce,distribute,or market it for a fee or royalty.
E)by an owner of a patent to allow another business to produce,distribute,or market the product covered by the patent for a fee or royalty.

Accepted Answer

The answer of Licensing arrangements are arrangements
A)by a creator of...

Quiz 5: The Global Context of Business

In some countries,it may be legal to bribe businesses and government officials,but this practice is illegal in Canada.This barrier to international trade is known as

Canada prohibits the importing of ivory from any foreign nation.This is a(n)

Sometimes foreign companies have many problems in complying with stringent and often changing regulations and bureaucratic obstacles known as

If Montrose Corp.purchases tangible assets in Germany,which international organizational structure is it using?

Laura's Lights began shipping products to its new partner in a foreign nation only to find out that before the products would be let into the country a tax of $1.00 per unit had to be paid.This tax is known as a(n)

In marketing a new product in a foreign nation,Mega Computer was surprised to see the very low prices of its local competitor's models.Subsequent investigation revealed that the domestic businesses had received money from the government.Mega now knows what a(n) ________ is.

If the Mexican government puts a limit on the ounces of tequila being imported into Mexico,what has occurred?

International trade improves peoples' standard of living,yet countries often put up trade barriers? Why is this?

Which of the following is correct with regard to social and cultural differences?

Arguments for and against protectionism include all of the following except

Investment Canada's mandate is

Many governments require that products sold in their country be at least partly made there.This policy involves ________ laws.

When Bob began exporting his famous barbecue beef,he found that one country would let him bring only 1000 pounds of beef into the country each year.Bob had just discovered a(n)

Associations of producers that control supply and prices are called

Selling a product abroad for less than the cost of production is referred to as

Which of the following statements best describes the effects of subsidies?

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with?

Local content laws state that

Which of the following is correct regarding the barriers to international trade?

Licensing arrangements are arrangements