Question 1

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Accepted Answer

This definition accurately describes a strategic alliance between companies.

Question 2

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

Accepted Answer

Foreign direct investment often involves large financial commitments and companies are generally more likely to make such investments in markets that are large and attractive with potential for growth and profitability.

Question 3

When nations continue to experience large and ever-growing trade deficits:
A) they will ultimately produce so much output that other countries will lose domestic jobs.
B) creditor nations will eventually stop taking IOUs and trade will cease.
C) their economy will automatically go bankrupt.
D) their currencies will eventually be worthless.

Accepted Answer

Creditor nations may eventually become reluctant to continue financing a country's trade deficits, fearing that the debtor nation might not be able to repay its debts. This could lead to a cessation of trade as creditor nations refuse to accept more IOUs, seeking to mitigate their risk.

Question 4

Explain a nation's balance of payments.

Accepted Answer

The answer of Explain a nation's balance of payments....

Question 5

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy?

Accepted Answer

The answer of What role do balance of trade, trade...

Question 6

A strategic alliance between a U.S. firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

Accepted Answer

Strategic alliances allow firms to combine resources, knowledge, and expertise to achieve mutual benefits, such as improved marketing efforts, product quality, and cost efficiency. By partnering with a German firm, a U.S. firm can tap into the German market and benefit from their technology and production expertise, while the German firm can access the U.S. market and benefit from their marketing and distribution capabilities. This can lead to a win-win situation for both firms.

Question 7

Generally speaking, nations tend to _____.
A) exploit their production and trade advantages
B) benefit from specialization
C) trade their output based on what they do best
D) do all of these things

Accepted Answer

Nations tend to exploit their production and trade advantages, benefit from specialization, and trade their output based on what they do best. Therefore, option D is the correct choice as it includes all three options.

Question 8

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors. The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources. Both nations enjoy a(n) ____ advantage.
A) comparative
B) resource/input
C) absolute
D) hardcore technological

Accepted Answer

The answer of The country of Cretonia is the only...

Question 9

Having set up factories, sales offices, and branch stores in several foreign nations, U.S.based Crenco has gone global through a form of expansion called a "joint venture."

Accepted Answer

Crenco has gone global through a form of expansion called "direct investment," which involves setting up factories, sales offices, and branch stores in foreign nations. A "joint venture" refers to a business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, which is not described in the scenario provided.

Question 10

The country of East Anglia exports domestically made products and imports products that aren't available locally. When exports are compared to imports, the resulting _____, which shows that more dollar value is exported than imported, reveals a(n) _____.
A) balance of payments / trade deficit
B) balance of trade / trade deficit
C) balance of trade / trade surplus
D) balance of payments / accounting crisis

Accepted Answer

The term used to describe the comparison between a country's exports and imports is the balance of trade. When the value of exports exceeds the value of imports, it is called a trade surplus. Therefore, choice C is the correct answer. Choices A and D are incorrect because a trade deficit and an accounting crisis respectively would indicate that a country is importing more than it is exporting, which is not the case in this scenario.

Question 11

The difference between a country's total outflows and inflows of money over a period of time is its _____.
A) balance of payments
B) balance of trade
C) domestic fluctuation
D) international trade balance

Accepted Answer

The balance of payments is a comprehensive record of a country's transactions with the rest of the world, including both its outflows and inflows of money. It includes the balance of trade (which only looks at goods and services) as well as other components such as investments and transfers. Domestic fluctuation refers to changes in a country's own economy, while the international trade balance is more specific to just the balance of trade.

Question 12

Under a franchising agreement between a U.S.based company and a foreign firm, in return for the rights to use its brand name and sell its products, the U. S. franchiser requires the foreign company to adhere to an established business model.

Accepted Answer

This is the basic concept of a franchising agreement, where the franchiser provides the brand name, products, and business model to the franchisee in exchange for fees and a percentage of profits. The franchisee is required to adhere to the established business model in order to maintain consistency across all locations and uphold the brand's reputation.

Question 13

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.made products in its own country, using your name and your processes and perhaps your intellectual property.

Accepted Answer

This is a accurate description of an international licensing agreement.

Question 14

Compare and contrast absolute advantage and comparative advantage.

Accepted Answer

The answer of Compare and contrast absolute advantage and comparative...

Question 15

It is parents weekend and your parents will arrive at your dorm in an hour. There are two tasks left to be done: washing the dishes and vacuuming. You and your roommate have agreed to divide up the work. In the past, you have been able to do the dishes in 30 minutes and vacuum in 15 minutes. Your roommate takes 40 minutes to do the dishes and 60 minutes to vacuum. Based on this scenario:
A) you have an absolute advantage in both jobs and a comparative advantage in doing dishes.
B) your roommate has an absolute advantage in doing dishes and a comparative advantage in vacuuming.
C) you have an absolute advantage in both jobs and a comparative advantage in vacuuming.
D) neither of you has an absolute advantage in either tasks, and you have a comparative advantage in vacuuming.

Accepted Answer

The answer of It is parents weekend and your parents...

Question 16

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Accepted Answer

Strategic alliances can take many forms, ranging from informal agreements between firms to more formal, structured joint ventures.

Question 17

Japan's production and exporting expertise lies in the areas of _____.
A) electronics and automobiles
B) industrial goods and airplane parts
C) business services and computer encryption
D) soy products and plastic goods

Accepted Answer

Japan is well-known for its production and exporting expertise in the areas of electronics and automobiles. Companies like Sony, Panasonic, Toyota, and Honda are among the most notable examples.

Question 18

Explain the difference between importing and exporting.

Accepted Answer

The answer of Explain the difference between importing and exporting....

Question 19

If a country buys more goods and services than it sells over a specified period of time, it has a _____.
A) trade surplus
B) trade deficit
C) unfavorable balance of payments
D) favorable balance of trade

Accepted Answer

A country that buys more goods and services than it sells has a trade deficit. A trade surplus would be the opposite - when a country sells more goods and services than it buys. An unfavorable balance of payments would include not only the trade balance, but also the balance of investment income and transfers. A favorable balance of trade would mean the same as a trade surplus, but does not take into account services.

Question 20

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years, the stability of its _____ may be in jeopardy.
A) government
B) economy
C) currency
D) international relations

Accepted Answer

An unfavorable balance of payments would indicate that Asiana's currency is not strong enough to support its imports, exports, and overall economic activity. This could lead to instability in the country's currency.

Quiz 3: Business in a Global Environment

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

When nations continue to experience large and ever-growing trade deficits:

Explain a nation's balance of payments.

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy?

A strategic alliance between a U.S. firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

Generally speaking, nations tend to _____.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors. The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources. Both nations enjoy a(n) ____ advantage.

Having set up factories, sales offices, and branch stores in several foreign nations, U.S.based Crenco has gone global through a form of expansion called a "joint venture."

The country of East Anglia exports domestically made products and imports products that aren't available locally. When exports are compared to imports, the resulting _, which shows that more dollar value is exported than imported, reveals a(n) _.

The difference between a country's total outflows and inflows of money over a period of time is its _____.

Under a franchising agreement between a U.S.based company and a foreign firm, in return for the rights to use its brand name and sell its products, the U. S. franchiser requires the foreign company to adhere to an established business model.

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.made products in its own country, using your name and your processes and perhaps your intellectual property.

Compare and contrast absolute advantage and comparative advantage.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Japan's production and exporting expertise lies in the areas of _____.

Explain the difference between importing and exporting.

If a country buys more goods and services than it sells over a specified period of time, it has a _____.

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years, the stability of its _____ may be in jeopardy.