Question 1

What surprised many analysts was the _______ in which a recession,initially focused in the United States,turned into a global recession with economic contraction occurring worldwide.
A) severity
B) insignificance
C) speed
D) harshness
E) Slowness

Accepted Answer

The use of the word "surprised" in the sentence suggests that the unexpected factor was how quickly the recession spread globally. Therefore, the best choice is C, speed. A, severity, D, harshness, and E, slowness, are possible factors of a recession, but they do not fit the context of the sentence. B, insignificance, is not a relevant option as the sentence clearly states that the recession had a global impact.

Question 2

Hennessy Hardware,a Canadian retailer,buys much of its inventory from Asian countries.Hennessy Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports.
A) rose
B) fell
C) remained constant
D) floated unpredictably

Accepted Answer

If the value of the Canadian dollar rises relative to the currencies of the countries from which Hennessy imports, then the price of the goods that Hennessy imports will decrease, allowing Hennessy to buy more inventory with the same amount of Canadian dollars. This would result in cost savings and higher profit margins for the company.

Question 3

The outlook for growth in global trade appears to be:
A) less optimistic than in the past.
B) brighter every day.
C) unclear and lacking focus.
D) nonexistent.

Accepted Answer

The answer of The outlook for growth in global trade...

Question 4

Which of the following factors does not influence the value of a nation's currency?
A) The movement in the GDP of the country in question
B) The movement in the domestic level of income
C) The competitiveness of the country in question
D) The ability of the country to maintain its rate of inflation within acceptable target ranges
E) The ability of the country to operate within an acceptable balance of trade range

Accepted Answer

The answer of Which of the following factors does not...

Question 5

Many economists and business experts contend that ________ will likely be the growth market of the future.
A) Asia
B) Africa
C) South America
D) the Middle East

Accepted Answer

Asia has been experiencing significant economic growth in recent years and is projected to continue to do so in the future. It has a large and growing population, a rising middle class, and improving infrastructure and technology. Additionally, many multinational corporations have already established a strong presence in Asia, making it a highly attractive market for investment and expansion. While Africa, South America, and the Middle East also have potential for growth, they currently have more significant economic and political challenges to overcome.

Question 6

At approximately what rate are the emerging economies expect to grow compared to the fully-developed economies of the world?
A) 2X
B) 3X
C) 1X
D) 5X
E) 0.5X

Accepted Answer

Emerging economies are generally expected to grow at about twice the rate of fully-developed economies due to factors like higher potential for industrialization and increasing consumer markets.

Question 7

What is Protectionism?
A) economic policies put in place to protect and/or improve the competitiveness of domestic industries
B) impeding or restricting the openness of a market or markets to foreign competitors
C) the use of tariffs, trade restrictions, or other related activities
D) the use of quotas, artificial control of currency values, or other related activities
E) all of the above

Accepted Answer

Protectionism refers to all of the options listed: economic policies put in place to protect and/or improve the competitiveness of domestic industries, impeding or restricting the openness of a market or markets to foreign competitors, and the use of tariffs, trade restrictions, quotas, artificial control of currency values, or other related activities.

Question 8

What sectors prices are expected to continue to have a strong influence on the cost base of many businesses?
A) labour
B) energy
C) raw materials
D) goods
E) services

Accepted Answer

The answer of What sectors prices are expected to continue...

Question 9

_______ refers to the need for developing economies to maintain a focus on the core elements of an open economy -those being the law of supply and demand,encouragement of entrepreneurship and wealth creation,and the willingness to encourage and support private ownership.
A) Commitment to an International Trade System
B) Absence of Protectionism
C) Fundamentals of Fair Trade
D) Market Openness
E) Balanced Economic Development

Accepted Answer

Market openness is the most fitting choice to describe the need for developing economies to maintain a focus on the core elements of an open economy, such as the law of supply and demand, encouragement of entrepreneurship and wealth creation, and support for private ownership.

Question 10

How many countries in The European Union use the Euro as a common currency?
A) 6
B) 27
C) 16
D) 10
E) 17

Accepted Answer

16 countries in the European Union use the Euro as a common currency. These countries are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

Question 11

What organization played a key role in the development of a solution to the sovereign debt issues challenging the governments of a number of European Union members in 2010 and 2011?
A) WTO
B) IMF
C) U.S. government
D) ECB
E) World Bank

Accepted Answer

The International Monetary Fund (IMF) played a key role in developing a solution to the sovereign debt issues in the European Union. The IMF provided financial assistance to countries such as Greece, Portugal, and Ireland in order to help them address their debt problems and implement economic reforms.

Question 12

Which of the following statements best describes the possibilities for small businesses in global markets?
A) Small businesses have little chance of competing against giant multinational corporations in global markets.
B) Small businesses already dominate global business. In fact, most multinational corporations are actually quite small.
C) Small businesses are often better prepared to enter global markets than large, bureaucratic corporations.
D) The main problem faced by small businesses in global markets is that franchise arrangements favoured by small business owners are illegal in most countries.

Accepted Answer

Small businesses often have some advantages over large corporations when it comes to entering global markets. They are often more nimble and flexible, and can adapt more quickly to changing market conditions. Additionally, they may be able to better understand and serve niche markets. However, they may face some challenges such as lack of resources and limited brand recognition. Overall, while small businesses may not be able to compete head-to-head with large multinationals, they can still carve out a valuable place for themselves in global markets. Option A is wrong because small businesses can still compete on a smaller scale or have competitive edges like addressing niche markets efficiently. Option B is wrong because multinational corporations are often huge and established businesses, while small businesses are just starting out. Option D is not true because franchise arrangements are legal in many countries, and many small businesses do not rely on franchising for their global expansion.

Question 13

What has allowed trade to flourish?
A) individualization
B) departmentalization
C) specialization
D) division of labour
E) manufacturing

Accepted Answer

The answer of What has allowed trade to flourish?
A) individualization
B)...

Question 14

Which of the following are NOT considered part of the BRIC countries leading emerging economy impact on the global marketplace?
A) Russia
B) Brazil
C) Italy
D) India
E) China

Accepted Answer

Italy is not considered part of the BRIC countries. The acronym BRIC refers to Brazil, Russia, India, and China, which are considered the leading emerging economies with a significant impact on the global marketplace.

Question 15

When a country devalues its currency,this encourages the sale of its
A) imports.
B) domestic goods to foreign countries.
C) international goods.
D) international services.
E) debts.

Accepted Answer

Devaluation of a currency makes the country's products cheaper for foreign customers. Therefore, other countries will likely to buy more products from this country. So, it will encourage the sale of its domestic goods to foreign countries.

Question 16

For firms interested in global markets,investments in China are considered to be:
A) too risky and not worth the effort.
B) illegal based on World Trade Organization (WTO) rulings.
C) an emerging business opportunity.
D) dependent on Yao Ming's success in the National Basketball Association.

Accepted Answer

Investments in China are considered to be an emerging business opportunity for firms interested in global markets due to the country's growing economy and large population. While there are certainly risks involved, many companies see the potential for significant returns on their investments in China.

Question 17

Trade occurs between _________.
A) countries
B) organizations
C) individuals
D) a) and b)
E) b) and c)

Accepted Answer

The answer of Trade occurs between _________.
A) countries
B) organizations
C) individuals
D)...

Question 18

Which of the following represents the value of one nation's currency relative to the currencies of another country?
A) Euro rate
B) Currency rate
C) Exchange rate
D) Standard of living

Accepted Answer

Exchange rate represents the value of one nation's currency relative to the currencies of another country.

Question 19

The ability of governments and their central banks to manage monetary and credit policy _______,will have significant bearing on inflationary pressures in the years to come.
A) separately
B) individually
C) jointly
D) a) and b)
E) b) and c)

Accepted Answer

The answer of The ability of governments and their central...

Question 20

Which of the following is NOT one of the six fundamentals which governments globally need to commit to,are the following:
A) Commitment to an International Trade System
B) Market Openness
C) Protectionism
D) Fundamentals of Fair Trade
E) Balanced Economic Development

Accepted Answer

Protectionism goes against the principles of international trade and market openness, and can be detrimental to balanced economic development and fair trade. Therefore, it is not one of the fundamentals that governments need to commit to.

Quiz 3: The Global Marketplace

What surprised many analysts was the _______ in which a recession,initially focused in the United States,turned into a global recession with economic contraction occurring worldwide.

Hennessy Hardware,a Canadian retailer,buys much of its inventory from Asian countries.Hennessy Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports.

The outlook for growth in global trade appears to be:

Which of the following factors does not influence the value of a nation's currency?

Many economists and business experts contend that ________ will likely be the growth market of the future.

At approximately what rate are the emerging economies expect to grow compared to the fully-developed economies of the world?

What is Protectionism?

What sectors prices are expected to continue to have a strong influence on the cost base of many businesses?

_______ refers to the need for developing economies to maintain a focus on the core elements of an open economy -those being the law of supply and demand,encouragement of entrepreneurship and wealth creation,and the willingness to encourage and support private ownership.

How many countries in The European Union use the Euro as a common currency?

What organization played a key role in the development of a solution to the sovereign debt issues challenging the governments of a number of European Union members in 2010 and 2011?

Which of the following statements best describes the possibilities for small businesses in global markets?

What has allowed trade to flourish?

Which of the following are NOT considered part of the BRIC countries leading emerging economy impact on the global marketplace?

When a country devalues its currency,this encourages the sale of its

For firms interested in global markets,investments in China are considered to be:

Trade occurs between _________.

Which of the following represents the value of one nation's currency relative to the currencies of another country?

The ability of governments and their central banks to manage monetary and credit policy _______,will have significant bearing on inflationary pressures in the years to come.

Which of the following is NOT one of the six fundamentals which governments globally need to commit to,are the following: