Question 1

Which of the following is home to the largest percentage of the world's population?

Accepted Answer

A)  Africa
B)  Europe
C)  North America
D)  AsiaE) A) and B)
F) A) and C)

Question 2

The North American Free Trade Agreement (NAFTA)and the European Union (EU)are both examples of a common market.What is the idea behind a common market?

Accepted Answer

The elimination of t...

Question 3

When a Canadian company buys oil from Saudi Arabia,this is an example of a Canadian import.

Accepted Answer

A) True 
 B)False

Question 4

Cartels are all contradictions to unrestricted free trade and letting the market set prices.

Accepted Answer

A) True 
 B)False

Question 5

Firms such as McDonald's,Pizza Hut,and KFC,have entered the global market by offering investors the opportunity to set up:

Accepted Answer

A)  licensed trade offices.
B)  independent exporting houses.
C)  multinational subsidiaries.
D)  franchises.E) A) and C)
F) A) and B)

Question 6

_______________ are specialists that match buyers and sellers from different countries and provide services to ease the process of entering global markets.

Accepted Answer

A)  Export trading companies
B)  Licensees
C)  Strategic alliance companies
D)  KeiretsuE) B) and C)
F) All of the above

Question 7

Which of the following strategies has the most amount of commitment,control,risk,and profit potential associated with it?

Accepted Answer

A)  exporting
B)  foreign direct investment
C)  international joint venture and strategic alliances
D)  licensingE) None of the above
F) B) and C)

Question 8

The Tsingtao Brewing Company pays a fee to Anheuser-Busch for the right to brew and distribute Budweiser in China.Tsingtao is the licensor and the fee paid is a royalty.

Accepted Answer

A) True 
 B)False

Question 9

Many economists and business experts contend that ________ will likely be the growth market of the future.

Accepted Answer

A)  Asia
B)  Africa
C)  South America
D)  the Middle EastE) B) and C)
F) A) and D)

Question 10

A joint venture is a partnership in which two or more companies join to undertake a major project.

Accepted Answer

A) True 
 B)False

Question 11

ExxonMobil Corporation refines and markets its petroleum products in different nations.In addition,Exxon's stockholders and managers come from different nations.ExxonMobil is an example of a true:

Accepted Answer

A)  meganational.
B)  multinational corporation.
C)  joint international venture.
D)  international bureaucracy.E) A) and B)
F) A) and C)

Question 12

All of the following are recognized as being potential hurdles to be overcome in global trading except:

Accepted Answer

A)  different cultures.
B)  different languages.
C)  different money systems.
D)  lack of market opportunities.E) A) and B)
F) All of the above

Question 13

The benefits and costs of a common market like the North American Free Trade Agreement (NAFTA)are still being debated today.

Accepted Answer

A) True 
 B)False

Question 14

Franchising is popular both domestically and internationally.

Accepted Answer

A) True 
 B)False

Question 15

According to current Canadian laws,Canadian firms are prohibited from participating in joint ventures with foreign firms.

Accepted Answer

A) True 
 B)False

Question 16

Canada,as of 2009,enjoys a favourable balance of trade with the rest of the world.

Accepted Answer

A) True 
 B)False

Question 17

Which country is Canada's largest trading partner?

Accepted Answer

A)  China
B)  The United States
C)  Japan
D)  None of the choices are correctE) B) and C)
F) None of the above

Question 18

When Steam Whistle Breweries of Toronto sells beer to Germany,the sales of its product would be classified as a Canadian ____________

Accepted Answer

A)  countertrade arrangement.
B)  export.
C)  import.
D)  foreign aid shipment.E) All of the above
F) A) and C)

Question 19

Mortavia is a small nation that has followed protectionist policies for many years.Which of the following would be an example of a nontariff barrier established by Mortavia?

Accepted Answer

A)  Establishment of a tax levied on imported goods so that foreign products are more expensive than competing domestic goods.
B)  Establishment of a tax levied on imported goods designed primarily to raise money for the government.
C)  Establishment of restrictive quality standards requiring foreign firms to make expensive modifications in their products before they can be sold in Mortavia.
D)  Participation in the Uruguay Round of GATT negotiations.E) B) and D)
F) A) and B)

Question 20

To provide better service for their customers,Google purchased office space in India for their online customer service representatives.This is an example of:

Accepted Answer

A)  dumping.
B)  foreign direct investment.
C)  a nontariff trade restriction.
D)  ethnocentricity.E) B) and D)
F) B) and C)

Exam 3: Competing in Global Markets

ExxonMobil Corporation refines and markets its petroleum products in different nations.In addition,Exxon's stockholders and managers come from different nations.ExxonMobil is an example of a true:

Correct AnswerverifiedShow Answer

_______________ are specialists that match buyers and sellers from different countries and provide services to ease the process of entering global markets.

Correct AnswerverifiedShow Answer

Mortavia is a small nation that has followed protectionist policies for many years.Which of the following would be an example of a nontariff barrier established by Mortavia?

Correct AnswerverifiedShow Answer

To provide better service for their customers,Google purchased office space in India for their online customer service representatives.This is an example of:

Correct AnswerverifiedShow Answer

Which of the following is home to the largest percentage of the world's population?

Correct AnswerverifiedShow Answer

According to current Canadian laws,Canadian firms are prohibited from participating in joint ventures with foreign firms.

Correct AnswerverifiedShow Answer

Canada,as of 2009,enjoys a favourable balance of trade with the rest of the world.

Correct AnswerverifiedShow Answer

Franchising is popular both domestically and internationally.

Correct AnswerverifiedShow Answer

When a Canadian company buys oil from Saudi Arabia,this is an example of a Canadian import.

Correct AnswerverifiedShow Answer

The Tsingtao Brewing Company pays a fee to Anheuser-Busch for the right to brew and distribute Budweiser in China.Tsingtao is the licensor and the fee paid is a royalty.

Correct AnswerverifiedShow Answer

Cartels are all contradictions to unrestricted free trade and letting the market set prices.

Correct AnswerverifiedShow Answer

When Steam Whistle Breweries of Toronto sells beer to Germany,the sales of its product would be classified as a Canadian ____________

Correct AnswerverifiedShow Answer

Which of the following strategies has the most amount of commitment,control,risk,and profit potential associated with it?

Correct AnswerverifiedShow Answer

The North American Free Trade Agreement (NAFTA)and the European Union (EU)are both examples of a common market.What is the idea behind a common market?

Correct AnswerverifiedThe elimination of t...View AnswerShow Answer

Firms such as McDonald's,Pizza Hut,and KFC,have entered the global market by offering investors the opportunity to set up:

Correct AnswerverifiedShow Answer

Many economists and business experts contend that ________ will likely be the growth market of the future.

Correct AnswerverifiedShow Answer

All of the following are recognized as being potential hurdles to be overcome in global trading except:

Correct AnswerverifiedShow Answer

Which country is Canada's largest trading partner?

Correct AnswerverifiedShow Answer

A joint venture is a partnership in which two or more companies join to undertake a major project.

Correct AnswerverifiedShow Answer

The benefits and costs of a common market like the North American Free Trade Agreement (NAFTA)are still being debated today.

Correct AnswerverifiedShow Answer

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The elimination of t...
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