Question 1

Leigh has created a technique for drying flowers that retains the vibrant color of certain flowering plants.Although out of style in the U.S. ,dried flower arrangements are still highly sought after in several European and Asian nations.It is difficult to preserve the ingredients that go into her formula for more than a month.She decides to partner with firms in other nations to make and sell the formula,but you suggest she license the formula to foreign companies,and agree to royalties when they create the formula and sell it.Your advice makes better sense.

Accepted Answer

A) True 
 B)False

Question 2

As surgical procedures become extremely costly upwards of $100,000 per surgery) ,which of the following health benefits strategies is being considered,if not implemented,by American companies? According to the Making Ethical Decisions box titled "See the Sights,Meet the Doctors":

Accepted Answer

A)  U.S.companies are asking employees to seek out foreign medical students who are trained in the U.S.and willing to perform surgeries at a discount price.
B)  U.S.companies are asking employees to choose between taking a trip abroad or proceeding with expensive surgical procedures.The company is willing to pay for a trip,which may cost about $10,000,rather than a surgery,which may cost $100,000.
C)  Patients who elect to have surgeries performed abroad are finding the quality of these surgeries to be sub-standard compared to the quality and care they receive in the U.S.The lesson is to think twice about a company whose benefits prescribe that you have your surgeries abroad.
D)  U.S.companies are willing to pay for surgical procedures performed in nations such as India,South Korea,and Thailand,as opposed to the same procedure in the U.S.The difference in cost is significant,and the expertise and accommodations are similar if not better.E) A) and B)
F) A) and C)

Question 3

The largest importer in the global market today is:

Accepted Answer

A)  Japan.
B)  Russia.
C)  Germany.
D)  The United States.E) A) and D)
F) A) and B)

Question 4

Foreign travel can help in identifying global business opportunities.

Accepted Answer

A) True 
 B)False

Question 5

The appeal of global marketing strategies is that they all involve the same amount of risk.

Accepted Answer

A) True 
 B)False

Question 6

A favorable balance of trade occurs when the value of:

Accepted Answer

A)  imports equal the value of exports.
B)  the cash inflows equal the value of the cash outflows.
C)  the value of imports is less than the value of exports.
D)  the value of the dollar is greater than the value of the Euro.E) B) and C)
F) None of the above

Question 7

Trade experts' concerns about trading with China include:

Accepted Answer

A)  its small population size compared to other nations,which puts doubt in business people's minds about the worthiness of the investment.
B)  its political system,counterfeiting activities,and human rights abuses.
C)  its ties with organized labor unions.
D)  its economic philosophy that has changed from free markets to command economies.E) All of the above
F) A) and B)

Question 8

The purpose of forming strategic alliances is to share the costs of marketing new products and services to several countries.

Accepted Answer

A) True 
 B)False

Question 9

The country of Nelly exports $250 of goods and services and imports $170 of goods and services.Nelly has an unfavorable balance of trade of $80.

Accepted Answer

A) True 
 B)False

Question 10

An influential foreign government official approached your firm requesting a large sum of money.In return for this bribe,the official promises that your firm will receive preferential treatment in future government contracts.You refuse the request,explaining that the _________ Act of the United States prohibits you from making such payments.

Accepted Answer

A)  Federal Trade Commission
B)  Sherman Anti-trust
C)  Foreign Corrupt Practices
D)  Celler-KefauverE) None of the above
F) All of the above

Question 11

Norvada 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 Norvada?

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 to their products before they could be exported to Norvada.
D)  Participation in the Uruguay Round of GATT negotiations.E) C) and D)
F) B) and C)

Question 12

One advantage of licensing as a strategy to enter the global market is the sharing of trade secrets.

Accepted Answer

A) True 
 B)False

Question 13

_____________ is buying products from another country.

Accepted Answer

A)  Importing
B)  Outsourcing
C)  Retailing
D)  ExportingE) A) and B)
F) A) and C)

Question 14

__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner.

Accepted Answer

A)  Franchising
B)  Contract manufacturing
C)  Import trading
D)  Export tradingE) C) and D)
F) B) and C)

Question 15

From a sociocultural perspective,foreign companies have experienced a good amount of success in adapting their products and services to the U.S.market.

Accepted Answer

A) True 
 B)False

Question 16

__________ is lowering the value of a nation's currency relative to other currencies.

Accepted Answer

A)  Revaluation
B)  Deflation
C)  Devaluation
D)  Negative valuationE) None of the above
F) All of the above

Question 17

After finishing college,Nathan joined his uncle's company in Miami,FL,an) _______ of bauxite,copper,and other minerals from the Chile.Everyday,he brokers trades with mines in Chile to buy and transport these minerals into the U.S.

Accepted Answer

A)  exporter
B)  quota manager
C)  importer
D)  domestic traderE) A) and D)
F) A) and C)

Question 18

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Accepted Answer

A) True 
 B)False

Question 19

Through licensing,domestic firms give foreign manufacturers/producers the right to produce their product and use their trademark in exchange for royalties.

Accepted Answer

A) True 
 B)False

Question 20

Just about anything that can be sold in the United States can also be sold to buyers in other countries.

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

After finishing college,Nathan joined his uncle's company in Miami,FL,an) _______ of bauxite,copper,and other minerals from the Chile.Everyday,he brokers trades with mines in Chile to buy and transport these minerals into the U.S.

Correct Answer
verified

Correct Answer
verified

__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner.

Correct Answer
verified

Norvada 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 Norvada?

Correct Answer
verified

As surgical procedures become extremely costly upwards of $100,000 per surgery) ,which of the following health benefits strategies is being considered,if not implemented,by American companies? According to the Making Ethical Decisions box titled "See the Sights,Meet the Doctors":

Correct Answer
verified

Trade experts' concerns about trading with China include:

Correct Answer
verified

The purpose of forming strategic alliances is to share the costs of marketing new products and services to several countries.

Correct Answer
verified

A favorable balance of trade occurs when the value of:

Correct Answer
verified

__________ is lowering the value of a nation's currency relative to other currencies.

Correct Answer
verified

Just about anything that can be sold in the United States can also be sold to buyers in other countries.

Correct Answer
verified

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Correct Answer
verified

Foreign travel can help in identifying global business opportunities.

Correct Answer
verified

Correct Answer
verified

Through licensing,domestic firms give foreign manufacturers/producers the right to produce their product and use their trademark in exchange for royalties.

Correct Answer
verified

The country of Nelly exports $250 of goods and services and imports $170 of goods and services.Nelly has an unfavorable balance of trade of $80.

Correct Answer
verified

One advantage of licensing as a strategy to enter the global market is the sharing of trade secrets.

Correct Answer
verified

The appeal of global marketing strategies is that they all involve the same amount of risk.

Correct Answer
verified

From a sociocultural perspective,foreign companies have experienced a good amount of success in adapting their products and services to the U.S.market.

Correct Answer
verified

_____________ is buying products from another country.

Correct Answer
verified

The largest importer in the global market today is:

Correct Answer
verified

Exam 3: Doing Business in Global Markets

After finishing college,Nathan joined his uncle's company in Miami,FL,an) _______ of bauxite,copper,and other minerals from the Chile.Everyday,he brokers trades with mines in Chile to buy and transport these minerals into the U.S.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner.

Correct AnswerverifiedShow Answer

Norvada 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 Norvada?

Correct AnswerverifiedShow Answer

As surgical procedures become extremely costly upwards of $100,000 per surgery) ,which of the following health benefits strategies is being considered,if not implemented,by American companies? According to the Making Ethical Decisions box titled "See the Sights,Meet the Doctors":

Correct AnswerverifiedShow Answer

Trade experts' concerns about trading with China include:

Correct AnswerverifiedShow Answer

The purpose of forming strategic alliances is to share the costs of marketing new products and services to several countries.

Correct AnswerverifiedShow Answer

A favorable balance of trade occurs when the value of:

Correct AnswerverifiedShow Answer

__________ is lowering the value of a nation's currency relative to other currencies.

Correct AnswerverifiedShow Answer

Just about anything that can be sold in the United States can also be sold to buyers in other countries.

Correct AnswerverifiedShow Answer

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Correct AnswerverifiedShow Answer

Foreign travel can help in identifying global business opportunities.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Through licensing,domestic firms give foreign manufacturers/producers the right to produce their product and use their trademark in exchange for royalties.

Correct AnswerverifiedShow Answer

The country of Nelly exports $250 of goods and services and imports $170 of goods and services.Nelly has an unfavorable balance of trade of $80.

Correct AnswerverifiedShow Answer

One advantage of licensing as a strategy to enter the global market is the sharing of trade secrets.

Correct AnswerverifiedShow Answer

The appeal of global marketing strategies is that they all involve the same amount of risk.

Correct AnswerverifiedShow Answer

From a sociocultural perspective,foreign companies have experienced a good amount of success in adapting their products and services to the U.S.market.

Correct AnswerverifiedShow Answer

_____________ is buying products from another country.

Correct AnswerverifiedShow Answer

The largest importer in the global market today is:

Correct AnswerverifiedShow Answer

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