Question 1

Mariah Dover cashed her $100 traveler's check in Riga, the capital of Latvia.At the current _____ rate, she received $61.82 in Latvian currency from the bank teller who took her traveler's check.

Accepted Answer

The answer of Mariah Dover cashed her $100 traveler's check...

Question 2

_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered.
A)Multinational corporations
B)Borderless corporations
C)International monopolies
D)Cartels
E)Oligopolies

Accepted Answer

Multinational corporations operate in multiple countries and move resources, goods, services, and skills across national boundaries, often without regard to the country in which they are headquartered.

Question 3

_____ is the act of charging a lower price for a product in foreign markets than in its home market in order to win customers or get rid of a surplus.

Accepted Answer

The answer of _____ is the act of charging a...

Question 4

Which of the following is NOT one of the advantages associated with multinational corporations?
A)the capacity to tap into new technology from around the world
B)the ability to shift production from one plant to another as market conditions change
C)the ability to sidestep regulatory problems
D)a positive exchange rates
E)significant labor savings, even in highly unionized countries

Accepted Answer

A positive exchange rate is not an inherent advantage of multinational corporations, as exchange rates fluctuate and can be both advantageous and disadvantageous depending on the situation.

Question 5

_____ is the sense of national consciousness that boosts the culture and interests of one country over those of other countries.

Accepted Answer

The answer of _____ is the sense of national consciousness...

Question 6

Japan has limited the number of pounds of citrus fruit that can be imported into the country.This limitation is called a(n) _____.

Accepted Answer

The answer of Japan has limited the number of pounds...

Question 7

The _____, formerly the International Bank for Reconstruction and Development, is a bank that offers low-interest loans to developing nations.

Accepted Answer

The answer of The _____, formerly the International Bank for...

Question 8

_____ is a form of barter in which countries trade goods and services.

Accepted Answer

The answer of _____ is a form of barter in...

Question 9

A country's _____ is its set of shared beliefs, values, and social norms in a society.

Accepted Answer

The answer of A country's _____ is its set of...

Question 10

_____ is a legal process whereby a domestic firm gives a foreign firm the right to use its patents, trademarks, brands, products, and company name.The foreign firm will pay a royalty or fee agreed on by both parties.

Accepted Answer

The answer of _____ is a legal process whereby a...

Question 11

The United States imposes a(n) _____, a tax, on all imported bicycles.

Accepted Answer

The answer of The United States imposes a(n) _____, a...

Question 12

Which of the following is NOT listed in the text as a reason why more and more companies are doing business in the global marketplace?
A)Companies enter the global marketplace to maintain their balance of trade.
B)Companies enter the global marketplace in order to stay competitive with companies that are marketing the same product as they market.
C)Companies enter the global marketplace to expand their market.
D)Companies enter the global marketplace to acquire the resources they need to operate.
E)Companies enter the global marketplace as a result of governments lowering their trade barriers.

Accepted Answer

The balance of trade is a country-level economic measure, not typically a direct reason for individual companies to enter the global marketplace. Companies usually go global to expand their market, stay competitive, acquire resources, or take advantage of lower trade barriers, not to maintain a balance of trade.

Question 13

The most fundamental reason for the growth in world trade is probably due to:
A)the creation of free trade areas
B)the need for businesses to expand their markets
C)fluctuating exchange rates
D)cultural differences
E)political unrest

Accepted Answer

The most fundamental reason for the growth in world trade is the need for businesses to expand their markets. This expansion allows businesses to increase their customer base, diversify their market risk, and capitalize on economies of scale, driving global economic integration and trade growth.

Question 14

Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track.This is a partial description of the nation's:
A)oligopoly
B)natural advantage
C)infrastructure
D)ethnocentrism
E)cultural environment

Accepted Answer

Infrastructure refers to the basic physical and organizational structures needed for the operation of a society or enterprise, such as transportation systems (airports, roads, railroads), which are mentioned in the description.

Question 15

The Ford Motor Company has investing $6 billion to build a "world car," the midsize Mondeo.The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world.Ford is a(n) _____ company.
A)intercultural
B)interpartnership
C)multinational
D)nationalistic
E)conglomerate

Accepted Answer

Ford is considered a multinational company because it operates and sells products in multiple countries around the world, as evidenced by the global collaboration in designing the Mondeo.

Question 16

_____ is a trade agreement among Argentina, Brazil, Paraguay, and Uruguay that eliminates most tariffs among the member nations.

Accepted Answer

The answer of _____ is a trade agreement among Argentina,...

Question 17

Because the United States produces hospital surgical equipment more efficiently than any other country, the U.S.has a(n) _____ advantage in its production.

Accepted Answer

The answer of Because the United States produces hospital surgical...

Question 18

The newest free trade agreement is the _____.Participants in this agreement are the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras.

Accepted Answer

The answer of The newest free trade agreement is the...

Question 19

Meter-Man Inc.manufactures agricultural measuring devices in a small town in Minnesota.Meter-Man sells these devices to farmers in Brazil, Venezuela, and Argentina.Meter-Man is _____ measuring devices to South American nations.

Accepted Answer

The answer of Meter-Man Inc.manufactures agricultural measuring devices in a...

Question 20

South-Western College Publishing publishes business textbooks.A percentage of the books it publishes are sold to students in Canada.The textbooks are ____ to the Canada market.

Accepted Answer

The answer of South-Western College Publishing publishes business textbooks.A percentage...

Quiz 3: Competing in the Global Marketplace