Question 1

In the past few decades, U.S. manufacturers shifted focus from manufacturing and assembling products, to the design and architecture of products. Now, a new shift: the offshore outsourcing of design and architecture can be an even more serious disruption to the U.S. economy.

Accepted Answer

A) True 
 B)False

Question 2

The motivation behind trade protectionism is

Accepted Answer

A)   to limit accelerated growth of GDP that would cause inflation to escalate.
B)   to facilitate the belief that it will keep one's nation disease free.
C)   to increase the positive economic consequences of one's trade position.
D)   solely for the protection of nuclear attack.E) None of the above
F) A) and B)

Question 3

Digital Life Gaming has avoided contract manufacturing its consoles abroad due to the significant start-up costs in buying land and setting up its own manufacturing plants. They have made the right decision.

Accepted Answer

A) True 
 B)False

Question 4

Expropriation occurs when a host government takes over the assets of a foreign company.

Accepted Answer

A) True 
 B)False

Question 5

Successful multinational corporations disregard cultural differences between countries where they own property and perform business transactions.

Accepted Answer

A) True 
 B)False

Question 6

A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.

Accepted Answer

A) True 
 B)False

Question 7

Engineering Chiefs, a large U.S.-based mechanical engineering firm, wants to enter the global market. Upon careful analysis of the 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) C) and D)
F) A) and C)

Question 8

One advantage of offshore outsourcing is that consumers benefit from lower prices.

Accepted Answer

A) True 
 B)False

Question 9

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) None of the above
F) A) and B)

Question 10

A nation has a ________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

Accepted Answer

A)   supreme advantage
B)   primary efficiency
C)   qualified advantage
D)   comparative advantageE) None of the above
F) A) and B)

Question 11

Global trade includes the exchange of art, sports, and cultural events.

Accepted Answer

A) True 
 B)False

Question 12

A major goal of the Mercosur common market consisting of several South American countries is to better expand the movement of goods and services.

Accepted Answer

A) True 
 B)False

Question 13

Strategic alliances almost always result in one company taking over the financial interests of another company.

Accepted Answer

A) True 
 B)False

Question 14

The purpose of enacting some type of protectionist policy toward foreign goods is to limit competition from abroad, particularly when the country has domestic companies that produce and sell the same products and services.

Accepted Answer

A) True 
 B)False

Question 15

Contract manufacturing is a form of outsourcing.

Accepted Answer

A) True 
 B)False

Question 16

The United States imports more products and services than any nation in the world.

Accepted Answer

A) True 
 B)False

Question 17

Opponents of the North American Free Trade Agreement (NAFTA) warned that it would have serious economic consequences such as the loss of U.S. jobs.

Accepted Answer

A) True 
 B)False

Question 18

The U.S. government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Accepted Answer

A) True 
 B)False

Question 19

Jamieson Brothers, Inc. reported that it owns and operates 189 companies worldwide with 13% of its sales coming from Europe, 38% from Asia, 36% from the U.S., and 13% from other parts of the world. Clearly, Jamieson Brothers is

Accepted Answer

A)   a sovereign wealth fund.
B)   a multinational corporation.
C)   a foreign subsidiary.
D)   an expropriated organization.E) A) and B)
F) B) and C)

Question 20

Explain and provide at least one example of how legal and regulatory forces impede global trade.

Accepted Answer

Examples will vary. In global markets, t...

Exam 3: Doing Business in Global Markets

Opponents of the North American Free Trade Agreement (NAFTA) warned that it would have serious economic consequences such as the loss of U.S. jobs.

Correct AnswerverifiedShow Answer

Contract manufacturing is a form of outsourcing.

Correct AnswerverifiedShow Answer

In the past few decades, U.S. manufacturers shifted focus from manufacturing and assembling products, to the design and architecture of products. Now, a new shift: the offshore outsourcing of design and architecture can be an even more serious disruption to the U.S. economy.

Correct AnswerverifiedShow Answer

Global trade includes the exchange of art, sports, and cultural events.

Correct AnswerverifiedShow Answer

Explain and provide at least one example of how legal and regulatory forces impede global trade.

Correct AnswerverifiedExamples will vary. In global markets, t...View AnswerShow Answer

The United States imports more products and services than any nation in the world.

Correct AnswerverifiedShow Answer

The motivation behind trade protectionism is

Correct AnswerverifiedShow Answer

Ethnocentricity means

Correct AnswerverifiedShow Answer

Expropriation occurs when a host government takes over the assets of a foreign company.

Correct AnswerverifiedShow Answer

A major goal of the Mercosur common market consisting of several South American countries is to better expand the movement of goods and services.

Correct AnswerverifiedShow Answer

A nation has a ________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

Correct AnswerverifiedShow Answer

The U.S. government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Correct AnswerverifiedShow Answer

The purpose of enacting some type of protectionist policy toward foreign goods is to limit competition from abroad, particularly when the country has domestic companies that produce and sell the same products and services.

Correct AnswerverifiedShow Answer

Successful multinational corporations disregard cultural differences between countries where they own property and perform business transactions.

Correct AnswerverifiedShow Answer

One advantage of offshore outsourcing is that consumers benefit from lower prices.

Correct AnswerverifiedShow Answer

Strategic alliances almost always result in one company taking over the financial interests of another company.

Correct AnswerverifiedShow Answer

Digital Life Gaming has avoided contract manufacturing its consoles abroad due to the significant start-up costs in buying land and setting up its own manufacturing plants. They have made the right decision.

Correct AnswerverifiedShow Answer

A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.

Correct AnswerverifiedShow Answer

Jamieson Brothers, Inc. reported that it owns and operates 189 companies worldwide with 13% of its sales coming from Europe, 38% from Asia, 36% from the U.S., and 13% from other parts of the world. Clearly, Jamieson Brothers is

Correct AnswerverifiedShow Answer

Engineering Chiefs, a large U.S.-based mechanical engineering firm, wants to enter the global market. Upon careful analysis of the market, they will find that global trade

Correct AnswerverifiedShow Answer

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Examples will vary. In global markets, t...
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