Question

1 .Which concept represents the broadest view?

Trade Surplus

Globalization

International Business

2 If you are able to produce 1 piece of fine furniture or 10 birdhouses using the same resources, and your competitor is able to produce 5 pieces of fine furniture or 10 birdhouses using the same resources, who has the comparative advantage?

You

Neither

Your competitor in fine furniture

3 When conducting business in a market of comparative advantage, trading partners will realize:

decreased demand for products.

higher prices.

economies of scale.

4 Value of exports – value of imports is:

the equation for balance of payments.

the equation for balance of trade.

the equation for trade deficit.

5 Which trade measurement includes services, foreign investments, loans and foreign aid, financial capital, and financial transfers?

Balance of Trade

Balance of Payments

Trade Barriers

6 Which is a true statement?

Switch trading typically involves more than two trading partner countries.

Exchanging goods or services directly without the use of money is switch trading.

GDP exchanged for GWP is switch trading.

7 Margo has an internet business selling jewelry. The internet has allowed her to sell the jewelry locally and in foreign countries. This is called:

transferring.

exporting.

importing.

8 Property that is intangible such as trademarks, images, patents or production techniques are examples of:

franchise agreements.

license agreements.

property agreements.

9 When a foreign company builds a manufacturing plant in the United States, this is an example of:

Franchise Agreement.

Foreign Direct Investment.

Strategic Alliance.

10 Licensing and franchise agreements are tools that businesses use to get their products and services into:

global markets.

the internet.

retail stores.

11 What best describes cultural dimensions of particular concern to global businesses?

Communicating which language to use or not use.

Import and export tariffs.

Language, customs and taboos, values, time, business norms, religious beliefs.

12 Exchange rates:

vary from time to time.

are better than barter.

are firmly established by the IMF.

13 Some countries regulate how much organizations can charge for certain goods and services. These regulations are:

privacy laws.

price floors and ceilings.

trademark laws.

14 The Unilever Corporation sources the raw materials it buys from the global farming and forestry industries. Their initiative to source 100% of its agricultural raw materials sustainably, is an example of:

foreign infrastructure concerns.

barriers to entry.

corporate social responsibility in global trade.

15 An embargo:

prohibits trade or commercial activity with another country.

taxes imported goods.

taxes exported goods.

16 The ________ is an organization that pertains to international trade.

Working Trade Organization

World Trade Organization

World Transaction Operations

17 If Haiti is seeking funding to rebuild education and industrial infrastructure after a major earthquake, then it would turn to:

the World Bank.

the International Monetary Fund.

the United Nations.

18 If Romania is looking to get credit, in order to stabilize their currency as a result of a major economic disruption, then they would turn to:

the Federal Reserve.

the World Bank.

the International Monetary Fund.

19 Global trade really gets a boost from regional trade agreements. These are reciprocal trade agreements between:

two or more companies in the United States.

two or more nations.

two or more states.

20 The global corruption data from Transparency International shows that bribes have:

decreased.

increased.

remained stable.

21 The Foreign Corrupt Practices Act requires that companies in the United States ________ abide by the rules and regulations.

should

are encouraged to

must

22 The term sweatshop refers to a factory that is guilty of some sort of:

Hazard material violation

Labor abuse or violation

Environmental regulation

Answer 1