Question 1

Which of the following is described by the fact that Algeria includes 3973 km of railroads,104 000 km of roads,and 54 paved airports?

Accepted Answer

The fact that Algeria has 3973 km of railroads, 104 000 km of roads, and 54 paved airports highlights the infrastructure of the country.

Question 2

Which of the following move resources,goods,services,and skills across national boundaries without regard to the country in which they are headquartered?

Accepted Answer

Multinational corporations move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered. Borderless corporations do not have a definite headquarters and operate through the Internet or other modern communication technologies. International monopolies and cartels are formed by companies from different countries but primarily focused on dominating a specific industry or market, rather than moving resources or goods across national boundaries.

Question 3

Grand Metropolitan,a British company,purchased North American-based Pillsbury Co.in order to expand its product line and the market for its existing consumer products.Metropolitan's purchase was an example of which of the following activities?

Accepted Answer

The purchase of Pillsbury by Grand Metropolitan involved a direct foreign investment, as Grand Metropolitan is a British company acquiring a North American-based company.

Question 4

An enterprise in which two or more firms or investors (including governments)share ownership of a business and its property rights is known as which of the following?

Accepted Answer

A joint venture is an enterprise that involves two or more firms or investors sharing ownership of a business and its property rights. A cooperative is a different type of enterprise where individuals or businesses join together voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. An international partnership is a term that could apply to a variety of business relationships between firms from different countries. A cartel is a group of businesses that collude to fix prices and restrict output, which is illegal in many countries.

Question 5

When a French company brings its patents on digital telephone switches,and AT&T provides the marketing know-how to a business relationship,which of the following arrangements is occurring?

Accepted Answer

A joint venture is a business arrangement in which two or more companies agree to pool their resources to achieve a specific goal. In this case, the French company is providing the patented technology while AT&T is providing the marketing expertise, indicating that they are working together to achieve a common goal.

Question 6

Japanese automobile manufacturer Mazda began production of the Premacy SUV in Haikou,China,at a plant it built in the Chinese province and expected to make 20,000 autos in 3 years.Mazda is using which action to engage in global trading?

Accepted Answer

Mazda is engaging in direct foreign investment by building a plant in China to produce their vehicles. This type of investment involves a company making a long-term investment in a foreign country by building a production facility or acquiring an existing business.

Question 7

Capital Radio PLC,the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney Co.to create a radio network for children under the age of 16.The company will broadcast to a potential audience of 25 million under the name Capital Disney.This new radio network will be created as the result of which of the following arrangements?

Accepted Answer

The announcement states that Capital Radio PLC and Walt Disney Co. will be working together to create the radio network, indicating a joint venture. The concept of an international partnership or joint cooperative is not mentioned, and oligopoly refers to a market structure rather than a business arrangement.

Question 8

Which of the following is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries?

Accepted Answer

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

Question 9

Pierre Cardin gives technical advice on textile manufacturing to China and in exchange receives silk and cashmere.This is an example of which of the following?

Accepted Answer

This scenario describes a countertrade, which involves the exchange of goods or services between two countries without the use of cash. In this case, Pierre Cardin is providing technical advice to China in exchange for silk and cashmere.

Question 10

The Sara Lee Company sells the Hanes brand of hosiery in North America.The manufacturer of this hosiery brand in Great Britain sells it under the brand name of Pretty Polly.The Sara Lee Company is using which of the following activities to broaden its global marketing base without investing in overseas plants and equipment?

Accepted Answer

The answer of The Sara Lee Company sells the Hanes...

Question 11

Which of the following is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services?

Accepted Answer

This is the definition of a countertrade.

Question 12

One of the difficulties in doing business in France is that often the business must be conducted in French.Therefore,which of the following attitudes appear to be extremely important in France?

Accepted Answer

As French is the official language of France, it is highly valued and respected by the country's inhabitants. Therefore, speaking French and showing respect for the French culture and language are crucial parts of doing business in France, indicating the importance of nationalism.

Question 13

U.S.plane manufacturer McDonnell-Douglas has authorized Mitsubishi Heavy Industries,a Japanese company,to use its trademarks,patents,and other proprietary knowledge to manufacture F-15 fighter planes.Mitsubishi Heavy Industries pays McDonnell-Douglas.This is an example of which of the following activities?

Accepted Answer

This is an example of licensing, as McDonnell-Douglas is allowing Mitsubishi Heavy Industries to use its intellectual property (trademarks, patents, etcetera) in exchange for payment.

Question 14

Bribery translates to kuroi kiri (black mist)in Japan,schmiergeld (grease money)in Germany,and baksheesh (tip or gratuity)in the Middle East.This differing way of looking at bribes is descriptive of differences in which of the following?

Accepted Answer

The different words for bribery in different cultures suggest that there are cultural differences in how bribery is perceived and dealt with, indicating that the answer is culture.

Question 15

A domestic firm may decide to sign an agreement for the production of its goods by an established foreign manufacturer.Such private-label manufacturing by a foreign company is known as which of the following?

Accepted Answer

Contract manufacturing, also known as outsourcing or private-label manufacturing, refers to the process in which a company hires a foreign manufacturer to produce its goods under its own brand name or label. The foreign manufacturer produces the product according to the specifications and requirements provided by the domestic firm.

Question 16

Active ownership of a foreign company,with direct investors having either a controlling or a large minority interest in the firm,is best described by which of the following activities?

Accepted Answer

Direct foreign investment involves owning a controlling or significant minority stake in a foreign company, which is what is described in the question. Options A, B, and C do not accurately describe this activity.

Question 17

Which of the following is part of a nation's infrastructure?

Accepted Answer

Infrastructure refers to the physical and organizational structures and facilities needed for the operation of a society or enterprise. Railroads are a part of a nation's infrastructure as they are important transportation networks that enable the movement of goods and people within and between countries. Lakes, rivers, and mountain ranges are natural features and not considered part of infrastructure.

Question 18

Which of the following concepts best represents a country's set of beliefs,values,and social norms shared by members of society that determines what is socially acceptable?

Accepted Answer

Culture refers to the set of beliefs, values, customs, and practices that characterizes a society. It encompasses everything from the way people dress and eat to the way they think and interact with others. Culture plays a significant role in shaping social norms and determining what is socially acceptable in a given society. Traditions, regulations, and laws are all important components of culture, but they each represent distinct aspects of it. Traditions are specific customs or practices that are passed down from one generation to the next, while regulations and laws are specific rules and guidelines that govern behavior within a society or organization.

Question 19

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts.This example illustrates the importance of which of the following when marketing this product?

Accepted Answer

Cultural differences are the key factor in determining how a product is perceived and used by consumers in different countries. The example of toothpaste usage in Spain and the Netherlands demonstrates how these cultural differences can significantly impact marketing strategies and sales.

Question 20

The BC Cherry Growers sells much of its locally grown produce to Taiwan.Which of the following would be the easiest and least expensive way for the growers' association to sell to global markets?

Accepted Answer

Exporting would be the easiest and least expensive way for the growers' association to sell to global markets. With exporting, the association can sell their locally grown produce directly to the customers in the target market without having to involve any other third-party manufacturers or distributors. This minimizes additional costs and allows for greater control over the product's branding and distribution process.

Quiz 2: the Global Marketplace and Governments’ Roles