Question 1

The importance of e-commerce in global markets is increasing significantly.One of the major reasons is because,online e-commerce offers:

Accepted Answer

Online e-commerce provides access to a significantly larger pool of buyers compared to traditional brick and mortar stores. This opens up opportunities for businesses to expand their reach and increase sales in global markets.

Question 2

For Canada,the monetary value of all goods and services produced during one year was recently valued at $1.75 trillion.This is referred to as Canada's

Accepted Answer

GDP is the total monetary value of all goods and services produced within a country's borders during a specific time period, usually a year. The given monetary value of $1.75 trillion represents Canada's GDP. BOP refers to a record of a country's financial and economic transactions with the rest of the world, IID refers to the amount of money a country owes to foreign lenders, and TPO is not a commonly used economic term.

Question 3

One of the primary reasons that Canada will experience a shift in global trading partners and the type of Canadian exports by 2040 will be:

Accepted Answer

The growing role of emerging markets in the global economy will drive Canada to seek new international markets for its exports as demand for traditional products such as natural resources may decrease. Countries such as China and India have significantly increased their share of global GDP in recent years, and Canada may need to shift its focus towards these countries to remain competitive.

Question 4

Some global firms have recognized that if individuals in developing countries are provided small amounts of collateral-free capital,they can,in turn,grow successful local businesses,which may include selling products of the donating firm.These global firms have recognized which important concept?

Accepted Answer

The concept being recognized by these global firms is microfinancing, which refers to providing small amounts of collateral-free capital to individuals in developing countries to help them start or grow successful local businesses. This can have a positive impact on the local economy and may involve selling products of the donating firm.

Question 5

Which of the following statements accurately describes the global perspective on world trade?

Accepted Answer

The global perspective on world trade is that imports and exports should be complementary economic flows. This means that imports affect exports, and exports affect imports. They are both important and should work together in a balanced manner to promote economic growth and development. A surplus or deficit in either imports or exports could have negative consequences on the overall economy, and a balance should be maintained.

Question 6

By providing start-up microfinancing loans to individuals in India,Lever addressed which problem in their 4Ps strategy for the Indian market?

Accepted Answer

Lever addressed the "place" aspect of their 4Ps strategy by providing microfinancing loans, which helped improve distribution and accessibility of their products in the Indian market.

Question 7

Not only are global markets substantial in size,but many global markets are:

Accepted Answer

The statement mentions that many global markets are growing faster than the Canadian market, indicating that there is potential for businesses to expand into these markets and tap into their growth opportunities. Option B is not stated and Option C describes a lack of growth, which contradicts the opening sentence. Option D may be true for some global markets, but it is not a characteristic that applies to all of them.

Question 8

The phenomenon in which a country's imports affect its exports and its exports affect its imports is referred to as

Accepted Answer

The phenomenon described in the question is called the trade feedback effect. This means that changes in a country's imports can affect its exports and vice versa. For example, if a country imports a lot of raw materials, this could lead to an increase in its exports of finished goods. On the other hand, if a country's exports are booming, this could lead to an increase in imports of raw materials to produce those goods. The other options (B, C, D) are not commonly used terms to describe this specific phenomenon.

Question 9

World trade flows to and from Canada for goods and services among nations and industries reflect __________________.

Accepted Answer

World trade flows to and from Canada reflect demand and supply interdependencies, meaning that countries and industries are dependent on each other for the supply and demand of goods and services. This results in the flow of trade between countries and industries.

Question 10

The Malaysian government exchanged 20,000 tonnes of rice for an equivalent amount of Philippine corn.This international exchange is an example of:

Accepted Answer

The exchange of rice for corn between Malaysia and the Philippines is an example of countertrade, which involves the exchange of goods or services for other goods or services, rather than using money as a medium of exchange. In this case, Malaysia and the Philippines agreed to exchange 20,000 tonnes of rice for an equivalent amount of corn, which helped both countries meet their food and agricultural needs without resorting to traditional currency exchange.

Question 11

Trade is so important to Canada that it is one of the federal government's key priorities.It is so critical to the growth of the Canadian economy that the government established a network of more than 20 federal departments and agencies that work to help Canadian firms find new global markets and assist them in competing in those markets.This network is referred to as:

Accepted Answer

The network of federal departments and agencies that work to help Canadian firms find new global markets and compete in those markets is known as Team Canada Inc. This organization is responsible for promoting Canada's interests in international trade and investment, and for supporting the growth of Canadian businesses at home and abroad. TCI works closely with other government agencies, industry associations, and business leaders to identify new opportunities for Canadian firms, to address market barriers and to provide advice and support for firms looking to expand their global reach.

Question 12

All of the following are true aspects about the 'bottom of the pyramid' except

Accepted Answer

The statement "this socio-economic group is not a concern to global businesses" is not true. In fact, the bottom of the pyramid is a focus for global businesses as it represents a large potential customer base. The other statements (B, C, and D) are true. This group is characterized by individuals living on less than $2 a day, a population of approximately 4 billion, and being a focus for global businesses.

Question 13

All of the following are examples of Canadian companies that are successfully competing in the global marketplace except:

Accepted Answer

Disney is not a Canadian company, unlike the other options provided which are all Canadian companies successfully competing in the global marketplace.

Question 14

The trade feedback effect is one argument for:

Accepted Answer

The trade feedback effect suggests that increased trade, particularly through free trade agreements, can lead to economic growth and increased demand for imports, which can then lead to greater exports as well. Therefore, free trade agreements are the best choice for promoting international trade and economic growth.

Question 15

Global businesses,such as Motorola have recognized the importance of offering products to the 'bottom of the pyramid' socio-economic group.All of the following are features of a cell phone that Motorola offers to this group except:

Accepted Answer

The other options (A, B, and C) offer features that are beneficial for people in low-income areas who may not have access to consistent electricity and need a phone with a long battery life and standby time, or need a phone with extra-loud volume to overcome noisy environments. However, offering controls in English would not necessarily be a priority or beneficial for this group as they may speak a different language or have limited literacy skills in any language.

Question 16

In a world where 70 percent of all countries do not have convertible currencies or where government-owned enterprises lack sufficient cash or credit for imports,other means of payment are used.An estimated 15 to 20 percent of world trade involves _________,the practice of using barter rather than money for making global sales.

Accepted Answer

The practice of using barter rather than money for making global sales is known as countertrade, which involves the exchange of goods and services for other goods and services instead of using cash or credit. It is estimated that 15 to 20 percent of world trade involves this form of payment due to the lack of convertible currencies or credit availability in many countries. Therefore, the best choice is B.

Question 17

By 2040,it is estimated that all of the following will be part of Canada's top 10 export markets except:

Accepted Answer

According to the Government of Canada's 2018 Export Development Canada's Global Export Forecast, by 2040, Brazil, Mexico, and South Korea are expected to be part of Canada's top ten export markets. However, Nigeria is not expected to be among the top ten.

Question 18

Which of the factors below has played a key role in increasing Canadian exports to global markets:

Accepted Answer

Increased free trade has eliminated many barriers and facilitated easier access to global markets, resulting in the increase of Canadian exports. Higher tariffs, political turmoil, and currency instability would likely have the opposite effect, impeding trade and hurting exports.

Question 19

Which of the following statements about Canadian gross domestic product (GDP)is NOT true?

Accepted Answer

Canada exports over 35% of its GDP, not over 50%, making it an important trading nation.

Question 20

Volvo of North America delivered automobiles to the Siberian police force when Siberia had no cash to pay for them.It accepted payment in oil,which it then sold for cash to pay for media advertising.This international exchange is an example of:

Accepted Answer

This transaction is an example of countertrade, which involves the exchange of goods or services for other goods or services instead of using cash or currency. In this case, Volvo accepted payment in the form of oil, which it then sold for cash to pay for media advertising. This type of transaction is commonly used in international trade when there are challenges with foreign currency or payment options.

Quiz 7: Reaching Global Markets