MIE 201- Ch. 3
Member countries of the ________ represent 40 percent of the world's population and more than half of the world's gross domestic product (GDP). A.APEC B.WTO C.IMF D.World Bank E.EU
A. APEC
The theory of comparative advantage supports which motivation for countries and companies to trade internationally? A.Concentrating on relative strong points B.Obtaining materials, goods, and services C.Chasing economies of scale D.Keeping up with customers E.Growing markets
A. Concentrating on relative strong points
_______ occurs when a company enters a foreign market through ownership and control of assets in that country. A.Foreign direct investment B.Importing C.Joint venture D.Licensing E.Exporting
A. Foreign direct investment
Countries and companies trade internationally for all of the following reasons EXCEPT ________. A.focusing on competitors' strengths B.keeping up with customers C.growing markets D.obtaining resources, merchandises, and services E.chasing economies of scale
A. focusing on competitors' strengths
When using a(n) __________ strategy, a company uses a mixed approach in which it attempts to gain the benefits of international scale while responding to local needs. A.transnational strategy B.global strategy C.protectionism strategy D.multidomestic strategy E.ethnocentric strategy
A. transnational strategy
The sum total of a nation's net trade, i.e., its exports minus imports in a given year, defines its _________. A.balance of trade B.foreign direct investment C.protectionism D.balance of payments E.economies of scale
A.balance of trade
Tips for improving communication with a person from another culture include all of the following EXCEPT ________. A.showing respect B.regarding the person as a representative of another culture C.clarifying your intent and meaning D.being attentive to the other's customs E.adjusting your style to the other's style
B. regarding the person as a representative of another culture
The combination and interdependence of various economies around the world refers to _____. A.balance of trade B.economies of scale C.economic globalization D.comparative advantage E.trade surplus
C.economic globalization
Company XYZ creates autonomous subsidiaries in each new country it enters, thereby giving local managers independence in decision making and running the unit. Company XYZ is enlisting which of the following strategies? A.Ethnocentric strategy B.Global strategy C.Transnational strategy D.Multidomestic strategy E.Protectionism strategy
D. Multidomestic strategy
Common markets that endorse trade within the region while creating barriers against goods entering the region from nonmember nations are known as ________. A.the APEC B.the WTO C.the IMF D.trading blocs E.the EU
D. trading blocs
Which of the following was established in the 1940s to foster worldwide financial cooperation and enhance the strength of the world economy? A.The World Trade Organization (WTO) B.The Asia-Pacific Economic Cooperation (APEC) C.North American Free Trade Agreement (NAFTA) D.The International Monetary Fund (IMF) E.The World Bank
D. The International Monetary Fund (IMF)
The consideration of nonverbal symbols, local competition, and cultural differences affects which of the following areas in international expansion? A.Staffing B.Product customization C.Customer support D.Promotion E.Pricing
D.Promotion
Restricting the quantity of specific goods that nations allow to be imported during a given year is known as ________. A.embargoes B.tariffs C.dumping D.sanctions E.quotas
E. quotas
The government of Zenovia levies a surcharge of 200% on the value of every electronic product that is brought in the country. This is an example of _______. A.restrictive import standards B.import quota C.embargo D.anti-dumping measures E.tariffs
E. tariffs
Which term describes a long-term partnership between Company A and Company B to jointly develop, produce, or sell products? A.Strategic alliance B.Importing C.Licensing D.Exporting E.Joint venture
A. Strategic alliance
A collection of five financial institutions whose main goals are eliminating the most extreme levels of poverty around the globe and enhancing the income of the poorest people in every nation is the ________. A.World Bank B.EU C.APEC D.IMF E.WTO
A. World Bank
FixIt Tools, an Indian tool manufacturer, has just entered the German market. FixIt started selling large quantities of its tools at a significantly lower price than the cost of production and below what FixIt would charge in India. This practice is called ________. A.dumping B.tariffs C.sanctions D.quotas E.embargoes
A. dumping
A collective system of symbols, principles, approaches, values, and standards for behavior is referred to as ______. A.an exchange rate B.stereotyping C.ethnocentrism D.culture E.an embargo
d.Culture
When worldwide trade takes place without obstructive measures, it is called _____. A.tariffs B.embargo C.free trade D.protectionism E.dumping
c.Free Trade
Member countries of the European Union benefitted from switching to the common currency called the euro for all of the following reasons EXCEPT ________. A.in reducing transparency in pricing B.the euro simplified commerce for consumers and businesses C.financial dealings became less costly D.in lowering inflation and interest rates E.it gave the EU a stronger presence in global financial markets
A. in reducing transparency in pricing
Your roommate is from France and often judges individuals and groups according to French standards, behaviors, and customs. This tendency is called ______. A.transnational B.embargo C.stereotyping D.multidomestic E.ethnocentrism
E. ethnocentrism
When Company A sells products outside the country in which those products are produced, it is engaging in which of the following? A.Joint venture B.Exporting C.Strategic alliance D.Licensing E.Importing
B. Exporting
Which of the following allows a firm to use some or all of another company's intellectual property in exchange for a fee? A.Joint venture B.Licensing C.Importing D.Strategic alliance E.Exporting
B. Licensing
The WTO is guided by five principles, which do NOT include ________. A.discouraging biased practices B.dictating policies to national governments C.stopping discriminatory policies D.making trade policies more expected and less random E.decreasing trade barriers between nations
B. dictating policies to national governments
Last year, ABC and NBC came together to create a new company called XYZ, which is legally separate and distinct from both ABC and NBC. XYZ is an example of _____. A.international franchising B.a joint venture C.importing D.exporting E.licensing
B. a joint venture
Which of the following uses legal parameters based on comprehensive legal codes? A.Foreign Corrupt Practices Act B.Civil law C.Theocratic law D. Organization for Economic Co-Operation and Development E.Common law
B.Civil Law
This chapter and the video are in agreement that one of the biggest obstacles to doing business in China, or in any global business setting, is _____. A. quality and training of local workers B.cultural and linguistic differences C.licensing agreements D.consumer demand for American products E.time zone differences
B.cultural and linguistic differences
The broadest indicator of international trade is the ________. A.trade surplus B.comparative advantage C.balance of trade D.trade deficit E.balance of payments
E. balance of payments
Which is a stable medium for negotiating and observing international trade procedures and arbitrating trade disagreements among members? A.North American Free Trade Agreement (NAFTA) B.The Asia-Pacific Economic Cooperation (APEC) C.The World Trade Organization (WTO) D.The International Monetary Fund (IMF) E.The World Bank
C.The World Trade Organization (WTO)
Which one of the following statements does NOT accurately describe foreign exchange rates and currency valuations? A. Most currencies operate under a floating exchange rate system. B. Exchange rates can radically influence an organization's financial performance. C. Foreign exchange is the practice of exchanging of one currency into a comparable amount of another currency. D. A currency is called strong relative to another when its exchange rate is lower than what is considered normal. E. The supply and demand of a nation's money are determined by what is happening in the nation's own economy
D. A currency is called strong relative to another when its exchange rate is lower than what is considered normal.
________________ is not one of the primary functions of the IMF. A.Offering loans for a nation to deal with natural calamity B.Offering short-term finances C.Providing technical guidance and training D.Discouraging unfair practices E.Observing global financial development
D. Discouraging unfair practices
When ABC Manufacturing buys parts and materials in large quantities and thereby obtains much better pricing and cost savings, it is utilizing _____. A.exchange rate B.comparative advantage C.balance of payment D.economies of scale E.import quotas
D. economies of scale
A company is using a(n) __________ when it views the world as a single integrated market and maintains a highly centralized control on all units. A.transnational strategy B.multidomestic strategy C.protectionism strategy D.global strategy E.ethnocentric strategy
D. global strategy
Which of the following is NOT a commonly utilized approach by governments to interfere in international trade? A.Quotas B.Embargoes C.Tariffs D.Dumping E.Export subsidies
D.Dumping
Which strategy utilizes the concept of "think globally, act locally"? A.Protectionism strategy B.Ethnocentric strategy C.Global strategy D.Transnational strategy E.Multidomestic strategy
D.Transnational strategy
ABC Manufacturing, a Canadian company, regularly buys firefighting hose pipes from NBC Hosepipes in India. ABC's action is an example of _______. A.joint venture B.licensing C.exporting D.importing E.strategic alliance
D.importing
