Question 1

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

Accepted Answer

The government's ban on the import of snow skis is an example of a nontariff barrier, which is a type of trade barrier that restricts imports or exports through regulations, standards, and requirements other than taxes or quotas. The ban is not a tariff because it does not involve a tax on imports.

Question 2

Which of the following is true of global business?

Accepted Answer

Global business involves transactions between people or organizations from different countries.

Question 3

Triston is a company owned by a single owner with headquarters in Switzerland and manufacturing plants in 90 other nations. Triston is an example of a(n) _____.

Accepted Answer

Triston is a multinational corporation as it has operations in multiple nations.

Question 4

In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) _____.

Accepted Answer

The tax imposed on steel imports is referred to as a tariff, which is a tax on imported goods aimed at protecting domestic industries and creating jobs. This is not an import duty, as an import duty refers to a tax on imported goods levied by the country of import. It is not a voluntary import restraint, as that refers to a limit on the quantity of goods imported voluntarily agreed upon by both exporting and importing countries. It is also not a subsidy or financial boycott.

Question 5

A _____ is a nontax method of increasing the cost or reducing the volume of imported goods.

Accepted Answer

A nontariff barrier refers to any measure other than a tariff that is designed to restrict trade between nations. These measures can include quotas, embargoes, licensing requirements, and product standards.

Question 6

An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.

Accepted Answer

An attractive business climate is a multi-dimensional concept and includes factors such as ease of doing business, access to capital, low taxes, skilled workforce, and stable political and legal environment. While minimizing political risk is important, it is not the only dimension that defines an attractive business climate.

Question 7

Souzia, a small tropical country, boycotted the products of an international clothing store because the company manufactures and exports some of its goods from Argonia, the country with which Souzia has long standing political problems. This boycott is an example of _____.

Accepted Answer

The answer of Souzia, a small tropical country, boycotted the...

Question 8

The Candinia government continues to impose high tariffs on rice to make sure local farmers can earn a living. The tariff on rice is an example of _____.

Accepted Answer

The imposition of high tariffs on rice by the Candinian government to protect local farmers is an example of protectionism. Protectionism is a trade policy that aims to shield domestic industries from foreign competition by imposing restrictions such as tariffs, quotas, and subsidies. In this case, the high tariff on rice is meant to discourage importation and give local farmers an advantage in the market.

Question 9

The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market.

Accepted Answer

The criteria for choosing an office/manufacturing location are based on factors such as availability of raw materials, labor costs, transportation infrastructure, and government regulations. On the other hand, the criteria for entering a foreign market are based on factors such as market size, market growth potential, competition, cultural differences, and political stability. Therefore, the criteria for these decisions are different.

Question 10

The two general kinds of trade barriers are _____.

Accepted Answer

The two general kinds of trade barriers are tariff barriers and nontariff barriers. Tariff barriers refer to taxes placed on imported goods, making them more expensive and less competitive compared to locally produced goods. Nontariff barriers, on the other hand, refer to all other barriers that obstruct the free flow of goods, such as quotas, subsidies, regulations, and standards. These barriers are typically more difficult to quantify and remove than tariff barriers.

Question 11

A(n) _____ is a direct tax on imported goods.

Accepted Answer

A tariff is a tax that a government levies on imported products, making them more expensive and less attractive to consumers than domestic products of similar quality.

Question 12

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

Accepted Answer

Direct foreign investment is the method in which a company builds a new business or buys an existing business in a foreign country. Strategic alliance involves two or more companies collaborating for a specific purpose, global new venture refers to a startup launched by a company in multiple countries simultaneously, joint venture involves two or more companies forming a new entity to pursue a specific business opportunity, and direct exporting involves selling goods or services directly to customers in a foreign country without a physical presence there.

Question 13

The three strategies used to minimize or adapt to the political risk inherent in global business are avoidance, control, and cooperation.

Accepted Answer

This statement is true. The three strategies used to minimize or adapt to political risk are avoidance, control, and cooperation.

Question 14

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Accepted Answer

Subsidies are financial assistance given by the government to help promote economic growth and development in certain industries. This type of assistance can come in the form of low-interest loans, cash grants, and tax deductions. Subsidies can help businesses overcome financial obstacles and provide them with a competitive advantage in the global market.

Question 15

Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.

Accepted Answer

The purchasing power of consumers and competition are important factors in determining growth potential in foreign markets.

Question 16

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

Accepted Answer

The two types of political risk are actually political uncertainty and policy uncertainty, not economic uncertainty. Political uncertainty refers to the risk associated with political changes that can affect a company's ability to operate, while policy uncertainty involves risks related to changes in laws, regulations, and policies that can impact business operations.

Question 17

After Malta was permitted to join the European Union (EU), the other countries of the EU removed all taxes on the import of goods manufactured in Malta. In this scenario, the EU abolished the _____ for Malta-manufactured merchandise.

Accepted Answer

Tariffs are taxes on imported goods, and the fact that other EU countries removed tariffs on goods manufactured in Malta suggests that the EU abolished tariffs for Malta-manufactured merchandise.

Question 18

​Global business:

Accepted Answer

Global business involves the buying and selling of goods and services to people from different countries. It goes beyond just any sale of goods and services and does not require a certain size of company or involve setting up a factory in a different country. It may be regulated to varying degrees depending on the countries involved.

Question 19

Protectionism is the use of trade barriers to protect local companies and their workers from _____.

Accepted Answer

Protectionism is used to protect local companies and workers from foreign competition. Trade barriers such as tariffs, quotas, and subsidies are put in place to make it harder for foreign companies to compete with domestic ones. The goal is to give domestic companies an edge in the market and to protect jobs at home.

Question 20

The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

Accepted Answer

Studies have shown that if an expatriate's family is not satisfied with their new environment, they may ask the expatriate to return home or the expatriate may become distracted and unproductive, ultimately leading to a failed assignment. Therefore, the spouse and family's adjustment to the foreign culture is a critical factor in determining the success of an international assignment.

Quiz 8: Global Management

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

Which of the following is true of global business?

Triston is a company owned by a single owner with headquarters in Switzerland and manufacturing plants in 90 other nations. Triston is an example of a(n) _____.

In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) _____.

A _____ is a nontax method of increasing the cost or reducing the volume of imported goods.

An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.

Souzia, a small tropical country, boycotted the products of an international clothing store because the company manufactures and exports some of its goods from Argonia, the country with which Souzia has long standing political problems. This boycott is an example of _____.

The Candinia government continues to impose high tariffs on rice to make sure local farmers can earn a living. The tariff on rice is an example of _____.

The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market.

The two general kinds of trade barriers are _____.

A(n) _____ is a direct tax on imported goods.

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

The three strategies used to minimize or adapt to the political risk inherent in global business are avoidance, control, and cooperation.

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

After Malta was permitted to join the European Union (EU) , the other countries of the EU removed all taxes on the import of goods manufactured in Malta. In this scenario, the EU abolished the _____ for Malta-manufactured merchandise.

Global business:

Protectionism is the use of trade barriers to protect local companies and their workers from _____.

The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

Quiz 8: Global Management

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

Which of the following is true of global business?

Triston is a company owned by a single owner with headquarters in Switzerland and manufacturing plants in 90 other nations. Triston is an example of a(n) _____.

In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n) _____.

A _____ is a nontax method of increasing the cost or reducing the volume of imported goods.

An attractive business climate is defined by only one dimension: it minimizes the political risk to a company.

Souzia, a small tropical country, boycotted the products of an international clothing store because the company manufactures and exports some of its goods from Argonia, the country with which Souzia has long standing political problems. This boycott is an example of _____.

The Candinia government continues to impose high tariffs on rice to make sure local farmers can earn a living. The tariff on rice is an example of _____.

The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market.

The two general kinds of trade barriers are _____.

A(n) _____ is a direct tax on imported goods.

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

The three strategies used to minimize or adapt to the political risk inherent in global business are avoidance, control, and cooperation.

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market.

When conducting global business, companies should attempt to identify the two types of political risk, which are political uncertainty and economic uncertainty.

After Malta was permitted to join the European Union (EU) , the other countries of the EU removed all taxes on the import of goods manufactured in Malta. In this scenario, the EU abolished the _____ for Malta-manufactured merchandise.

​Global business:

Protectionism is the use of trade barriers to protect local companies and their workers from _____.

The evidence clearly shows that how well an expatriate's spouse and family adjust to the foreign culture is the most important factor in determining the success or failure of an international assignment.

Global business: