Question 1

Importing refers to selling domestically produced goods and services in foreign countries.

Accepted Answer

Importing refers to buying and bringing in goods and services from foreign countries to the domestic market, not selling domestically produced goods and services in foreign countries.

Question 2

The value of imports and exports within Canada has remained steady over the past ten years.

Accepted Answer

According to Statistics Canada, the value of imports and exports within Canada has remained relatively stable over the past ten years. There have been fluctuations based on economic conditions and trade agreements, but overall the value has not significantly increased or decreased.

Question 3

GDPs of China and India have decreased in recent years.

Accepted Answer

The GDPs of China and India have actually been increasing in recent years. Both countries have experienced high rates of economic growth, although there have been some fluctuations and slower growth in certain periods.

Question 4

The majority of the world's population lives in less-developed countries.

Accepted Answer

According to data from the World Bank, as of 2021, approximately 85% of the world's population lives in less-developed countries.

Question 5

A country that can produce goods for less than any other country has an absolute advantage.

Accepted Answer

This is the definition of absolute advantage - a country's ability to produce goods at a lower cost than another country.

Question 6

A country's comparative advantage is measured only in manufactured goods.

Accepted Answer

A country's comparative advantage can be in both manufactured and non-manufactured goods. Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than another country. This can be true for both manufactured and non-manufactured goods.

Question 7

People in developing nations have lower per-capita incomes than people in developed nations.

Accepted Answer

This is a widely accepted and observed phenomenon, as developing nations are usually characterized by economic challenges such as higher poverty rates, lower education levels, and fewer job opportunities. As a result, the average income per person in such countries tends to be lower than those of developed nations, where standards of living are generally higher.

Question 8

A superior education system can lead to a comparative advantage in human resources.

Accepted Answer

A superior education system can provide individuals with the necessary skills and knowledge to perform better in the workforce, leading to a comparative advantage in human resources for the country with such a system.

Question 9

Less-developed countries represent a lucrative market for Canadian firms because of their huge population.

Accepted Answer

Less-developed countries have large populations that potentially represent a vast market for Canadian firms.

Question 10

Ford Motor Company is merging its individual operation into one so that it can use a standardized product and marketing strategy worldwide.This strategy can best be described as a(n)________.
A) international marketing strategy
B) orderly marketing strategy
C) global strategy
D) multidomestic strategy

Accepted Answer

The strategy of merging operations to use a standardized product and marketing strategy worldwide is known as a global strategy. This involves treating the world as a single market and offering a uniform product and marketing strategy worldwide.

Question 11

A favourable balance of trade is known as a trade surplus.

Accepted Answer

A trade surplus occurs when a country's exports exceed its imports, resulting in a favourable balance of trade.

Question 12

When firms develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets,they are using a ________.
A) global strategy
B) free trade strategy
C) uniform strategy
D) multidomestic strategy

Accepted Answer

When firms develop products and marketing strategies specific to the tastes and buying habits of particular national markets, they are using a multidomestic strategy. This approach recognizes that consumer preferences and needs differ across different countries or regions and aims to customize products and marketing efforts accordingly. In contrast, a global strategy seeks to offer standardized products and marketing messages across multiple countries, while a uniform strategy involves offering the same products and marketing approach across all markets regardless of local differences. A free trade strategy focuses on reducing barriers to international trade and increasing access to global markets, rather than tailoring products and marketing efforts to match specific national markets.

Question 13

The Coca-Cola Company designs its ads around the world to emphasize a common theme.These ads are adapted only slightly for local markets.Coca-Cola is using which of the following strategies in its international operations?
A) host country strategy
B) global strategy
C) multidomestic strategy
D) uniform pricing strategy

Accepted Answer

The Coca-Cola Company is using a global strategy in its international operations by designing ads around the world with a common theme and adapting them only slightly for local markets. This strategy focuses on standardization and a centralized approach to decision-making.

Question 14

Companies such as Dell Computer adapt their websites to specific countries.These companies are following a(n)________ strategy.
A) international marketing
B) orderly marketing
C) global
D) multidomestic

Accepted Answer

Dell Computer is adapting its website to specific countries, which shows that it is following a multidomestic strategy. This strategy involves customizing products, services, and marketing campaigns to meet the specific needs and preferences of different countries or regions.

Question 15

A country's trade balance is determined by comparing the total amount of its exports to its imports.

Accepted Answer

A country's trade balance is the difference between the value of its exports and imports. If the value of exports exceeds the value of imports, the country has a trade surplus. If the value of imports exceeds the value of exports, the country has a trade deficit.

Question 16

Due to its highly educated workforce and low labour costs,India has a comparative advantage in software development.

Accepted Answer

India's highly educated workforce and lower labour costs have given it a comparative advantage in software development. This has led to the growth of India's IT industry and its emergence as a major player in the global software market.

Question 17

Film distributors sometimes change movie titles when marketing overseas due to language or slang barriers.Studios usually allow modification of its product as part of a ________ strategy.
A) multinational
B) multidomestic business
C) global
D) uniform

Accepted Answer

The answer of Film distributors sometimes change movie titles when...

Question 18

Trading with other countries significantly increases a company's risk.

Accepted Answer

The answer of Trading with other countries significantly increases a...

Question 19

Much of Canada's trade with the United States is resource-based.

Accepted Answer

Canada exports a significant amount of natural resources to the United States, including oil, lumber, minerals, and agricultural products.

Question 20

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

Accepted Answer

While the United States has one of the largest economies in the world, its GDP growth rate is not always higher than that of every other country. Many smaller or developing countries often experience higher GDP growth rates due to various factors such as economic reforms, development projects, and investments.

Quiz 4: Competing in World Markets