Global Exam Review 2019
Market factors
A company must charge less for their shoes in Athens than they do in Rome, because on average customers in Athens are not able to spend as much as in Rome. This is an example of which of the following factors influencing pricing decisions?
Competition with other countries
How has international trade increased the quality and productivity of manufacturing as stated in the presentation?
Every day
How often does the foreign exchange take place?
Governing business meetings
International law in global business does NOT include which of the following purposes?
True
Exchange rates affect the prices of goods.
False
Floating exchange rates occur when the government (central bank) of a country decide what its currency will be worth relative to other countries.
Proving hospitality
German customers are more easily fed up with long wait times than Brazilian customers. This directly relates to why businesses need to make educated decisions on what type of factors?
False
Air transportation is the most common form of transportation in physical distribution.
Committee of International Trade
All of the following direct international law EXCEPT which one of these?
Tariff
An ad valorem would be considered which of the following?
Licensing
An agreement where one company makes an asset available to another company in exchange for compensation is considered what?
True
Licensing is the transfer of rights and permission to produce and sell a product to a foreign firm.
False
One U.S. dollar = 1.01389 Japanese yen.
False
Perpetual inventory systems are usually conducted once a year.
True
Physical distribution connects a business to its customers.
Subsidies
What are payments made by the government and given to producers to be a contender with competitors?
False
The International Monetary Fund has approximately 100 members.
False
The World Bank was established in 1922.
True
UPC bar codes can capture product information at the point of sale.
Imports
What are items transported into a country from a foreign country?
1. Determining if expanding internationally is feasible 2. Selecting Markets to enter 3. Designing strategies for entering the international markets 4. Implement the international market strategies
What are the steps for preparing for global marketing?
North American Free Trade Agreement
What does NAFTA stand for?
Services are not able to be returned or saved
What does it mean to say services are perishable?
Boycott
What occurs when one country refuses to buy goods from another country?
Economic Union
When a country is a member to this level of economic integration, the countries involved have a common currency and similar tax rates. Which type of economic integration does this demonstrate?
Inflation
When considered low, the economy shows a rising currency value. Which of the following terms describes this occurrence?
Single Objectives
When implementing economic integration, which of the following is NOT a problem one may encounter?
1994
When was NAFTA created?
North American Free Trade Agreement (NAFTA)
Which agreement focuses on tariffs related to agriculture, textiles and automobiles?
Distinctive
Which is NOT an intensity level of distribution?
Expand United States Affairs
Which is NOT one of the reasons international trading is important?
Checking the shipment before checking the invoice
Which of the following accurately describes a "blind check" of merchandise?
Holding goods until they are sold
Which of the following accurately describes storage?
Skimming
Which of the following best describes charging a high price to achieve the highest profit over a short time?
Where and how products will get to the customer
Which of the following described distribution?
The United States puts trade barriers on Iran for not suspending a military program
Which of the following hypothetical situations is an example of a political factor influencing global marketing?
Businesses should not rely on technology to communicate with consumers
Which of the following is NOT a true statement?
Food Stamps Abroad
Which of the following is NOT a type of foreign aid?
Produce the products
Which of the following is NOT an important element of designing strategies for entering the international market?
Foreign spending in the domestic economy
Which of the following is NOT considered a debit item in the balance of trade?
Voting Rates
Which of the following is NOT one of the economic conditions affecting international business?
Network few foreign contacts
Which of the following is NOT true of working abroad?
Lack of flexibility
Which of the following is a disadvantage of rail transportation?
Employee theft
Which of the following is the leading cause of shrinkage?
Joint Venture
Which of the following methods of entering international markets is the most complex and requires the most risk?
Interest rate parity
Which of the following occurs when the forward exchange rate does NOT equal the spot exchange rate?
A channel of distribution
Which of the following terms describes the product path from the producer to the final customer?
Eliminate supply and demand
Which of the following was NOT a goal of the GATT as stated in the presentation?
Seaports
Which of the following was listed as a good area for Free Trade Zones?
The demand for products grows exponentially
Why can investing in emerging economies be beneficial?
