Question 1

The European Union created a single monetary unit to replace the national currencies of twelve member nations.This common currency is known as the:

Accepted Answer

A)  e-dollar.
B)  pound.
C)  mercosur.
D)  euro.E) B) and C)
F) C) and D)

Question 2

Household Appliances,Inc.has a manufacturing plant near Chicago.The company specializes in compact washers and dryers for countries where consumers have less living space.Household Appliances participates in the global market through:

Accepted Answer

A)  importing.
B)  dumping.
C)  exporting.
D)  balancing trade.E) A) and C)
F) None of the above

Question 3

With all its perception of opportunity,the expansion of global trade is still plagued by terrorism,nuclear proliferation,rogue states,and other issues.

Accepted Answer

A) True 
 B)False

Question 4

On a number of issues,the strategy behind common markets is debatable,but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Accepted Answer

A) True 
 B)False

Question 5

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

Accepted Answer

A) True 
 B)False

Question 6

In volume of exports,the three leading nations are:

Accepted Answer

A)  U.S. ,Germany,and China.
B)  U.S. ,France,and Canada.
C)  China,India,and Germany.
D)  England,China,and U.S.E) A) and D)
F) B) and D)

Question 7

A benefit of contracting with export trading companies is:

Accepted Answer

A)  They are the experts in establishing trading partners abroad,and negotiating all the details in retaining customers.
B)  They are experts in staying out of the financial transactions of establishing new markets.
C)  They will always assume the risk if your product does not sell to the foreign customer.
D)  They keep you legal because they serve as the franchisor and make certain that your products meet ISO requirements.E) B) and D)
F) None of the above

Question 8

The outlook for growth in global trade appears to be:

Accepted Answer

A)  less optimistic than in the past.
B)  more interesting yet more challenging every day.
C)  unclear and lacking focus.
D)  nonexistent.E) A) and C)
F) A) and B)

Question 9

If a protective tariff is placed on an imported product,the added cost will go to the government.

Accepted Answer

A) True 
 B)False

Question 10

Ethnocentricity means:

Accepted Answer

A)  "When in Rome,do as the Romans!"
B)  You believe your culture is superior to others.
C)  Cultural awareness.
D)  A trend toward accepting other cultures and trying various foods and religions to see if they fit your lifestyle.E) A) and C)
F) None of the above

Question 11

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

Accepted Answer

A) True 
 B)False

Question 12

Recently the United States has experienced its highest trade deficits with Chin
A.

Accepted Answer

A) True 
 B)False

Question 13

In global markets,no central system of law exists.

Accepted Answer

A) True 
 B)False

Question 14

A disadvantage of licensing is:

Accepted Answer

A)  it's very costly for the licensor.
B)  the licensee can decide to end the contract at a moment's notice.
C)  your company's image is never permitted to be associated with the product,even though you are the developer.
D)  the licensee may decide to use the expertise you have developed,break the agreement,and begin producing the product on his/her own.E) C) and D)
F) A) and D)

Question 15

Jill works as a flight attendant for an international airline.While in China,it is convenient for Jill to find look-alikes in famous brands of watches,purses,clothing,and golf clubs.In fact,she does her Christmas shopping there and even buys good quality items for auctioning at her son's pre-school events back in the U.S.Jill's actions:

Accepted Answer

A)  Demonstrate a continual problem with product piracy in China.
B)  Demonstrate how expensive it is to trade with China.Persons who travel there are really the only ones who can benefit from China trade.
C)  Demonstrate the low level of economic development in China,and the fact that only tourists can afford to purchase name brand goods in that nation.
D)  Demonstrate the World Trade Organization's encouragement of China to increase its production of counterfeit goods because there is a high demand for these globally.E) None of the above
F) B) and C)

Question 16

First Engineering,a large U.S.based mechanical engineering firm,is considering entering the global market.Upon careful analysis of the global market,they will find that global trade:

Accepted Answer

A)  Opportunities are diminishing.
B)  Is dominated by emerging,developing countries.
C)  Is big business today and is expected to be more important in the future.
D)  Is likely to be severely restricted in the future by nontariff trade barriers.E) B) and C)
F) C) and D)

Question 17

The complete ban on the sale of Cuban cigars in the United States is an example of an import quot
A.

Accepted Answer

A) True 
 B)False

Question 18

France,Italy,Denmark,and Luxembourg are all members of the EU.Which of the following statements is an accurate description of trade between these nations?

Accepted Answer

A)  France and Italy are permitted to engage in free trade due to their proximity to each other,however,Luxembourg only has free trade with Belgium,and Denmark only has free trade with Switzerland,Sweden,and Germany.
B)  The EU has abolished customs duties at internal borders for these and other member nations and put in place a uniform system for taxing imports.Internal border controls subsequently disappeared.
C)  Customs officers that collect tariffs are now found at the internal borders of all EU member nations.
D)  France,Italy,Denmark,and Luxembourg are four nations strongly considering abandoning the EU common market.The global trading bloc has proved inefficient in these nations attracting global business.E) B) and C)
F) C) and D)

Question 19

Monique's Unique Tile Boutique offers decorative tile from around the world.The owner regularly travels overseas to locate the best and most unusual tile that foreign producers have to offer.Monique participates in _____________.

Accepted Answer

A)  importing
B)  licensing
C)  dumping
D)  exportingE) All of the above
F) C) and D)

Question 20

A small Italian grocery store sells five varieties of feta cheese.It offers Bulgarian,French,Danish,Greek,and one that is processed and sold from Tillamook,Oregon.The domestic variety from Oregon) sells for $1.99/pound,while all the others sell for more than $2.99/pound,and the Greek variety is priced at $6.99/pound.The domestic variety is much cheaper because:

Accepted Answer

A)  Customers always perceive the domestic varieties to be of lower quality than the imported varieties.
B)  The value of the dollar never favors imported goods.
C)  Imported cheese producers often pay protective tariffs on these goods,which ultimately raises the price at the grocery store.
D)  The distributors of these imports refuse to buy the cheese in large enough quantities to enjoy economies of scale.E) All of the above
F) A) and D)

Exam 3: Doing Business in Global Markets

In volume of exports,the three leading nations are:

Correct Answer
verified

Household Appliances,Inc.has a manufacturing plant near Chicago.The company specializes in compact washers and dryers for countries where consumers have less living space.Household Appliances participates in the global market through:

Correct Answer
verified

The complete ban on the sale of Cuban cigars in the United States is an example of an import quot A.

Correct Answer
verified

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

Correct Answer
verified

Monique's Unique Tile Boutique offers decorative tile from around the world.The owner regularly travels overseas to locate the best and most unusual tile that foreign producers have to offer.Monique participates in _____________.

Correct Answer
verified

If a protective tariff is placed on an imported product,the added cost will go to the government.

Correct Answer
verified

The European Union created a single monetary unit to replace the national currencies of twelve member nations.This common currency is known as the:

Correct Answer
verified

Correct Answer
verified

France,Italy,Denmark,and Luxembourg are all members of the EU.Which of the following statements is an accurate description of trade between these nations?

Correct Answer
verified

First Engineering,a large U.S.based mechanical engineering firm,is considering entering the global market.Upon careful analysis of the global market,they will find that global trade:

Correct Answer
verified

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

Correct Answer
verified

With all its perception of opportunity,the expansion of global trade is still plagued by terrorism,nuclear proliferation,rogue states,and other issues.

Correct Answer
verified

Recently the United States has experienced its highest trade deficits with Chin A.

Correct Answer
verified

On a number of issues,the strategy behind common markets is debatable,but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Correct Answer
verified

In global markets,no central system of law exists.

Correct Answer
verified

Ethnocentricity means:

Correct Answer
verified

The outlook for growth in global trade appears to be:

Correct Answer
verified

Correct Answer
verified

A disadvantage of licensing is:

Correct Answer
verified

A benefit of contracting with export trading companies is:

Correct Answer
verified

Exam 3: Doing Business in Global Markets

In volume of exports,the three leading nations are:

Correct AnswerverifiedShow Answer

Household Appliances,Inc.has a manufacturing plant near Chicago.The company specializes in compact washers and dryers for countries where consumers have less living space.Household Appliances participates in the global market through:

Correct AnswerverifiedShow Answer

The complete ban on the sale of Cuban cigars in the United States is an example of an import quot A.

Correct AnswerverifiedShow Answer

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

Correct AnswerverifiedShow Answer

Monique's Unique Tile Boutique offers decorative tile from around the world.The owner regularly travels overseas to locate the best and most unusual tile that foreign producers have to offer.Monique participates in _____________.

Correct AnswerverifiedShow Answer

If a protective tariff is placed on an imported product,the added cost will go to the government.

Correct AnswerverifiedShow Answer

The European Union created a single monetary unit to replace the national currencies of twelve member nations.This common currency is known as the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

France,Italy,Denmark,and Luxembourg are all members of the EU.Which of the following statements is an accurate description of trade between these nations?

Correct AnswerverifiedShow Answer

First Engineering,a large U.S.based mechanical engineering firm,is considering entering the global market.Upon careful analysis of the global market,they will find that global trade:

Correct AnswerverifiedShow Answer

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

Correct AnswerverifiedShow Answer

With all its perception of opportunity,the expansion of global trade is still plagued by terrorism,nuclear proliferation,rogue states,and other issues.

Correct AnswerverifiedShow Answer

Recently the United States has experienced its highest trade deficits with Chin A.

Correct AnswerverifiedShow Answer

On a number of issues,the strategy behind common markets is debatable,but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Correct AnswerverifiedShow Answer

In global markets,no central system of law exists.

Correct AnswerverifiedShow Answer

Ethnocentricity means:

Correct AnswerverifiedShow Answer

The outlook for growth in global trade appears to be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A disadvantage of licensing is:

Correct AnswerverifiedShow Answer

A benefit of contracting with export trading companies is:

Correct AnswerverifiedShow Answer

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