Question 1

Cultural sensitivity is not as important of an issue in cyberspace as it is in other communication realms.

Accepted Answer

Cultural sensitivity is still an important issue in cyberspace as people from various cultures interact and communicate online. The internet has a global reach, and it is essential to be mindful and respectful of cultural differences to avoid misunderstandings and build effective communication.

Question 2

A revenue tariff is designed to generate income for citizens.

Accepted Answer

A revenue tariff is designed to generate income for the government, not directly for citizens.

Question 3

Currencies that can be easily converted into other currencies are called soft currencies.

Accepted Answer

The answer of Currencies that can be easily converted into...

Question 4

Economically speaking, unlike countries included in the EU, the United States is a national market with a single economy.

Accepted Answer

The answer of Economically speaking, unlike countries included in the...

Question 5

If the value of the Canadian dollar falls relative to the U.S. dollar, Canadian exports to the United States should increase.

Accepted Answer

When the Canadian dollar falls relative to the U.S. dollar, Canadian exports become relatively cheaper for U.S. buyers. As a result, the demand for Canadian exports should increase, ultimately leading to an increase in Canadian exports to the United States.

Question 6

Each country's exchange rate is generally quoted in terms of another country's currency.

Accepted Answer

This is true. For example, the exchange rate of the US dollar is often quoted in terms of the Euro or Japanese Yen. This allows for easy comparison of currency values across different countries.

Question 7

A trade deficit exists when a nation's exports exceed its imports.

Accepted Answer

A trade deficit exists when a nation's imports exceed its exports, not the other way around.

Question 8

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

Accepted Answer

This strategy, known as currency manipulation, is used by some governments to make their exports more affordable on the global market, increasing demand and creating economic growth. However, it can also lead to trade conflicts and retaliation from other countries.

Question 9

If a country that produces wine enacts a tariff on imported wine to match the country's domestic wine price, this would be an example of a protective tariff.

Accepted Answer

This is an example of a protective tariff, as it is intended to protect the domestic wine industry by making imported wine more expensive and less competitive with domestic wine.

Question 10

A nation's exchange rate is the rate at which a nation's currency can be exchanged for the currencies of other nations.

Accepted Answer

This statement is true. The exchange rate represents the value of a currency in relation to other currencies and can impact international trade, investment, and tourism.

Question 11

The Foreign Corrupt Practices Act regulates the payment of bribes by U.S. firms to officials in foreign countries where such practices are customary.

Accepted Answer

The statement is true. The Foreign Corrupt Practices Act (FCPA) prohibits the payment of bribes to foreign officials for the purpose of obtaining or retaining business. The FCPA applies to all U.S. companies, as well as foreign firms and individuals that take any action in furtherance of a corrupt payment while in the United States. The fact that bribery may be customary in a foreign country does not excuse the practice by U.S. firms.

Question 12

Compared with the United States, Europeans value employee benefits more than low unemployment and business efficiency.

Accepted Answer

Studies have shown that overall, Europeans tend to value employee benefits such as paid time off, healthcare, and retirement benefits more than low unemployment rates and business efficiency. This is in contrast to the United States, where low unemployment rates and business efficiency are often prioritized over employee benefits.

Question 13

The United States has an international trade deficit in the sale and purchase of goods but a trade surplus in services.

Accepted Answer

According to the latest data from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis, the United States had a goods trade deficit of $915 billion in 2019 while having a services trade surplus of $260 billion.

Question 14

A nation's infrastructure includes all facilities aside from Internet access.

Accepted Answer

A nation's infrastructure includes not only physical facilities such as roads, bridges, and buildings, but also includes communication and transportation systems, water supply networks, energy production and distribution systems, and much more. Internet access is also considered as part of the infrastructure in modern times.

Question 15

A U.S. company operating in the European Union (EU) is required to adhere to European regulations, such as mandatory vacation time.

Accepted Answer

When a U.S. company operates in the EU, it is required to follow EU regulations, including those related to employee benefits such as mandatory vacation time.

Question 16

A weak euro is a disadvantage to European exporters.

Accepted Answer

A weak euro makes European exports cheaper for foreign buyers, which can actually be an advantage to European exporters. However, it can make imports more expensive, which can be a disadvantage to European consumers.

Question 17

The EU bans imports of any U.S. agricultural product that has been treated with growth hormones. In response, the United States triples tariffs on imports of selected European products. This would be an example of a protective tariff.

Accepted Answer

The statement accurately describes the implementation of a protective tariff as a response to the EU ban on U.S. agricultural products treated with growth hormones. A protective tariff is intended to protect domestic industries from foreign competition, and in this scenario, the United States is using tariffs to retaliate against the EU's restriction on U.S. agricultural products.

Question 18

If a nation has an unfavorable balance of trade, it also has an unfavorable balance of payments.

Accepted Answer

An unfavorable balance of trade, which means a country imports more goods than it exports, does not automatically result in an unfavorable balance of payments. The balance of payments includes not only the trade balance but also other financial flows, such as foreign investment, loans, and remittances, which can offset a trade deficit.

Question 19

Exchange rates are set by the various national governments.

Accepted Answer

Exchange rates are primarily determined by the supply and demand of different currencies in the global market, not by national governments. However, governments may intervene in foreign exchange markets in order to influence exchange rates.

Question 20

Spanish is the most widely spoken language in the world.

Accepted Answer

While Spanish is one of the most widely spoken languages in the world, it is not the most widely spoken. Currently, the most widely spoken language is Chinese (Mandarin), followed by Spanish, English, and Hindi.

Quiz 4: Competing in World Markets