Question 1

Around the globe,completely free trade is common.

Accepted Answer

Completely free trade seldom exists.

Question 2

Understanding that Arab businessmen tend to stand face to face when holding a conversation reveals the importance of understanding another culture's use of
A) language.
B) dialect.
C) religious practices.
D) manners.
E) body language.

Accepted Answer

Differences in body language and personal space affect international trade.

Question 3

The effective translation of product names can be crucial to the success of a foreign marketing effort because of
A) political barriers.
B) cultural barriers.
C) legal barriers.
D) export quotas.
E) body language.

Accepted Answer

Cultural differences include those in spoken and written language.

Question 4

What are the different international barriers to trade? Give an example of each one.

Accepted Answer

The answer of What are the different international barriers to...

Question 5

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

Accepted Answer

The World Bank,also known as the International Bank for Reconstruction and Development,was established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries.

Question 6

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?
A) Legal
B) Political
C) Cultural
D) Economic
E) Scientific

Accepted Answer

When a company decides to do business outside its own country,it is likely to encounter economic,legal,political,cultural,social,and technological barriers.

Question 7

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

Accepted Answer

The International Monetary Fund (IMF)was established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.

Question 8

A specific amount of money levied on each unit of a product brought into the country is a(n)
A) ad valorem tariff.
B) value-added tariff.
C) fixed tariff.
D) protective tariff.
E) duty-free tariff.

Accepted Answer

A fixed tariff is a specific amount of money levied on each unit of a product brought into the country.

Question 9

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)
A) quota.
B) exchange control.
C) trade deficit.
D) embargo.
E) free trade zone.

Accepted Answer

A quota limits the number of units of a particular product that can be imported into a country.

Question 10

Political considerations change slowly,while laws change rapidly.

Accepted Answer

Political considerations are seldom written down and often change rapidly,unlike legal issues.

Question 11

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

Accepted Answer

Similar to NAFTA,the Association of Southeast Asian Nations will promote free trade,peace,and collaboration among its nine members,which do not include Britain and Japan.

Question 12

A group of nations or companies that band together to act as a monopoly is known as a
A) conglomerate.
B) licensor.
C) cartel.
D) multinational.
E) licensee.

Accepted Answer

A cartel is a group of firms or nations that agrees to act as a monopoly and not compete with each other to generate a competitive advantage in world markets.

Question 13

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

Accepted Answer

The answer of What cultural issues should a manager consider...

Question 14

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on
A) currency.
B) gold.
C) the metric system.
D) bartering.
E) color coding.

Accepted Answer

Most countries use the metric system which may create problems for both sellers and buyers in the international marketplace.

Question 15

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

Accepted Answer

Cultural differences,including body language and gestures,may greatly affect international trade.

Question 16

The law that allows selected American firms desiring international trade to form monopolies to compete with foreign cartels is the
A) Webb-Pomerene Export Trade Act.
B) Bretton Woods Agreement.
C) General Agreement on Tariffs and Trade.
D) Foreign Corrupt Practices Act.
E) Sherman Antitrust Act.

Accepted Answer

The Webb-Pomerene Export Trade Act of 1918 allows selected U.S.firms to form monopolies to compete with foreign monopolistic organizations.

Question 17

A change in administration in a foreign government that is hostile to foreign trade is an example of a(n)
A) political barrier.
B) cultural barrier.
C) exchange barrier.
D) export quota.
E) body language.

Accepted Answer

A political factor centers around government.A sudden change in power,particularly in an unstable country,can result in a new regime that is hostile to foreign businesses and represents a political barrier.

Question 18

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 decreases the value of currency in relation to other currencies,which encourages exportation and tourism.

Question 19

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

Accepted Answer

The General Agreement on Tariffs and Trade (GATT)provides a forum for tariff negotiations and a place where international trade problems can be discussed and resolved.

Question 20

A common reason for establishing quotas or tariffs is to prohibit dumping.

Accepted Answer

Dumping occurs when a country or business sells products at a lower price than what it costs to product them;imposing a quota or tariff will offset this practice.

Quiz 3: Business in a Borderless World

Around the globe,completely free trade is common.

Understanding that Arab businessmen tend to stand face to face when holding a conversation reveals the importance of understanding another culture's use of

The effective translation of product names can be crucial to the success of a foreign marketing effort because of

What are the different international barriers to trade? Give an example of each one.

The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.

When a company decides to do business outside its own country,it must research several factors,including potential barriers to international trade.Which of the following is not a potential barrier cited in your text?

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

A specific amount of money levied on each unit of a product brought into the country is a(n)

To reduce dollars flowing out of the country,the United States can take measures to limit the number of foreign cars imported from Japan by imposing a(n)

Political considerations change slowly,while laws change rapidly.

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

A group of nations or companies that band together to act as a monopoly is known as a

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

Not all countries trading in international markets package goods in the same measurement units.Unlike the United States,most countries rely on

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

The law that allows selected American firms desiring international trade to form monopolies to compete with foreign cartels is the

A change in administration in a foreign government that is hostile to foreign trade is an example of a(n)

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

The General Agreement on Tariffs and Trade was a precursor to the World Trade Organization and provided a forum for tariff negotiations.

A common reason for establishing quotas or tariffs is to prohibit dumping.