Question 1

Companies doing business internationally have traditionally used a globalization strategy.

Accepted Answer

A) True 
 B)False

Question 2

When Nike has its athletic shoes produced by companies in Asia,the Nike name still appears on the shoes.This illustrates

Accepted Answer

A)   contract manufacturing.
B)   licensing.
C)   direct investment.
D)   exporting.
E)   importing.F) A) and E)
G) A) and D)

Question 3

What are some of the unique problems that a small business might face in global expansion that larger firms would not?

Accepted Answer

Smaller firms are more likely to find th...

Question 4

Protective tariffs raise the price of foreign goods to allow competition with more expensive domestic goods.

Accepted Answer

A) True 
 B)False

Question 5

A trade advantage with the best chance of surviving is one based on

Accepted Answer

A)   worker knowledge.
B)   technology.
C)   a monopoly of a resource.
D)   production efficiency.
E)   lack of a resource.F) B) and D)
G) A) and C)

Question 6

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Accepted Answer

A) True 
 B)False

Question 7

Companies should conduct environmental analyses before beginning to do business internationally in order to evaluate potential for problems associated with different markets and to develop a _______ for those markets.

Accepted Answer

A)   SWOT matrix
B)   plan
C)   strategy
D)   market
E)   productF) D) and E)
G) A) and B)

Question 8

Because it virtually controls the world's deposits of gem-quality diamonds,DeBeers Consolidated Mines,Ltd.has a(n)

Accepted Answer

A)   absolute advantage.
B)   comparative advantage.
C)   advantage based on efficient production.
D)   trade deficit.
E)   balance of payment.F) C) and E)
G) A) and C)

Question 9

Sociocultural differences,such as variations in spoken language and body language,have no impact on international business.

Accepted Answer

A) True 
 B)False

Question 10

When a firm's products are standardized in all countries,

Accepted Answer

A)   advertising cannot be used.
B)   only publicity can be used for promotion.
C)   different ads are illegal.
D)   distribution is more expensive.
E)   advertising may have to be modified.F) B) and D)
G) B) and E)

Question 11

The Association of Southeast Asian Nations (ASEAN)effectively united Singapore,Britain,and Japan into one market.

Accepted Answer

A) True 
 B)False

Question 12

More companies are moving away from a _______ strategy to globalization.

Accepted Answer

A)   personalization
B)   customization
C)   standardization
D)   tailored
E)   individualizedF) B) and E)
G) A) and B)

Question 13

Should Audiotech consider a joint venture? Should it hire a sales force of people native to the countries it enters?

Accepted Answer

A joint venture would enable Audiotech t...

Question 14

Coca-Cola allows a Mexican firm to use its name,formula,and brands in return for a royalty.This arrangement is known as

Accepted Answer

A)   exporting.
B)   licensing.
C)   direct investment.
D)   contract manufacturing.
E)   a joint venture.F) A) and B)
G) C) and E)

Question 15

A multinational strategy involves customizing products,promotion,and distribution according to cultural,technological,regional,and national differences.

Accepted Answer

A) True 
 B)False

Question 16

What cultural issues should a manager consider before doing business in a foreign country?

Accepted Answer

It is important for the manager to under...

Question 17

What does the WTO stand for and what does it do?

Accepted Answer

WTO stands for the World Trade Organizat...

Question 18

A favorable balance of trade exists when a country

Accepted Answer

A)   imports more than it exports.
B)   exports more than it imports.
C)   sends out more cash than it takes in.
D)   spends more than it saves.
E)   saves more than it spends.F) A) and B)
G) A) and C)

Question 19

Even when products are standardized,advertising often has to be modified.

Accepted Answer

A) True 
 B)False

Question 20

What does Audiotech electronics produce?

Accepted Answer

A)   Car stereos
B)   Widgets
C)   Control consoles
D)   Surround sound systems
E)   SmartphonesF) A) and C)
G) B) and E)

Exam 3: Business in a Borderless World

Sociocultural differences,such as variations in spoken language and body language,have no impact on international business.

Correct AnswerverifiedShow Answer

What does the WTO stand for and what does it do?

Correct AnswerverifiedWTO stands for the World Trade Organizat...View AnswerShow Answer

Companies doing business internationally have traditionally used a globalization strategy.

Correct AnswerverifiedShow Answer

When Nike has its athletic shoes produced by companies in Asia,the Nike name still appears on the shoes.This illustrates

Correct AnswerverifiedShow Answer

Should Audiotech consider a joint venture? Should it hire a sales force of people native to the countries it enters?

Correct AnswerverifiedA joint venture would enable Audiotech t...View AnswerShow Answer

Protective tariffs raise the price of foreign goods to allow competition with more expensive domestic goods.

Correct AnswerverifiedShow Answer

What does Audiotech electronics produce?

Correct AnswerverifiedShow Answer

What cultural issues should a manager consider before doing business in a foreign country?

Correct AnswerverifiedIt is important for the manager to under...View AnswerShow Answer

Because it virtually controls the world's deposits of gem-quality diamonds,DeBeers Consolidated Mines,Ltd.has a(n)

Correct AnswerverifiedShow Answer

Coca-Cola allows a Mexican firm to use its name,formula,and brands in return for a royalty.This arrangement is known as

Correct AnswerverifiedShow Answer

When a firm's products are standardized in all countries,

Correct AnswerverifiedShow Answer

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Correct AnswerverifiedShow Answer

What are some of the unique problems that a small business might face in global expansion that larger firms would not?

Correct AnswerverifiedSmaller firms are more likely to find th...View AnswerShow Answer

Even when products are standardized,advertising often has to be modified.

Correct AnswerverifiedShow Answer

The Association of Southeast Asian Nations (ASEAN)effectively united Singapore,Britain,and Japan into one market.

Correct AnswerverifiedShow Answer

More companies are moving away from a _______ strategy to globalization.

Correct AnswerverifiedShow Answer

Companies should conduct environmental analyses before beginning to do business internationally in order to evaluate potential for problems associated with different markets and to develop a _______ for those markets.

Correct AnswerverifiedShow Answer

A multinational strategy involves customizing products,promotion,and distribution according to cultural,technological,regional,and national differences.

Correct AnswerverifiedShow Answer

A trade advantage with the best chance of surviving is one based on

Correct AnswerverifiedShow Answer

A favorable balance of trade exists when a country

Correct AnswerverifiedShow Answer

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WTO stands for the World Trade Organizat...
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A joint venture would enable Audiotech t...
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It is important for the manager to under...
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Smaller firms are more likely to find th...
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