Question 1

A(n)________ is a total ban on imports of certain products or all products from a particular nation.

Accepted Answer

An embargo is a complete ban on imports of certain products or all products from a specific country. Tariff is a tax imposed on imports, quota is the limit set on the quantity of imports, and dumping is when a foreign company exports products at a lower price than the domestic market.

Question 2

An important question for the small business owner to ask before entering global markets is,"If we go global,can we get back out?"

Accepted Answer

It is important for small business owners to consider if they have the resources to exit a global market if needed.

Question 3

Martha has heard that Iranian caviar is in demand and is planning to start an importing business.After further research,she found that she is not able to import such product from Iran to the United States.This is an example of:

Accepted Answer

The scenario describes an embargo, which is a government-imposed restriction on trade with a particular country or group of countries. In this case, the U.S. government has imposed an embargo on Iranian goods, which prevents Martha from importing Iranian caviar. Tariffs are taxes placed on imported goods, quotas are limits on the quantity of goods that can be imported, and dumping refers to the practice of selling goods in a foreign market at a lower price than the domestic market. None of these terms accurately describe the situation described in the scenario.

Question 4

In order to grow their international business,Chong and Kelly's Engineered Demolitions,they have had to become more culturally sensitive.

Accepted Answer

To successfully do business internationally, it is important to be culturally sensitive and adaptable to different customs, languages, and business practices.

Question 5

A recent study concluded that American firms with global operations grew faster and earned more than purely domestic companies.

Accepted Answer

The statement is true, according to a recent study. Companies with global operations have access to larger markets and diverse sources of revenue, which can result in faster growth and higher earnings.

Question 6

George is planning to export fabrics to the Bahamas.After investigating the trade rules,he found that he can only export limited yards of fabrics to the Bahamas.This is an example of:

Accepted Answer

A quota is a restriction on the quantity of a specific good that can be imported or exported, often set by a government. In this case, George is limited in the number of yards of fabric he can export to the Bahamas, indicating a quota. A tariff is a tax on imported or exported goods, an embargo is a complete ban on trade with a particular country, and dumping involves selling products at a lower price than the cost to produce them. None of these choices accurately describe George's situation.

Question 7

Going global can lower manufacturing costs.

Accepted Answer

Going global allows companies to move production to countries with lower labor and manufacturing costs, resulting in overall lower manufacturing costs.

Question 8

Unlike an EMC or an ETC,manufacturer's export agents are international sales representatives who work on commission in a short-term relationship with the small domestic company.

Accepted Answer

Manufacturer's export agents are indeed international sales representatives who work on commission in a short-term relationship with the small domestic company. EMC and ETC, on the other hand, are more involved in the export process and provide a wider range of services.

Question 9

A ________ is a document the seller draws on the buyer,requiring the buyer to pay the face amount (the purchase price of the goods)either on sight (a sight draft)or on a specified date (a time draft)once the goods are shipped.

Accepted Answer

A bank draft is a document drawn by the seller on the buyer, requiring payment of the purchase price either on sight or on a specified date once the goods are shipped.

Question 10

Going global tends to make companies more quality and customer conscious.

Accepted Answer

Going global exposes companies to a larger and more diverse customer base, which often leads to an increased focus on quality and meeting customer needs in order to remain competitive.

Question 11

The least expensive way to enter international markets is by using a trade intermediary.

Accepted Answer

The answer of The least expensive way to enter international...

Question 12

Going up against some of the toughest competition in the world forces a company to hone its competitive skills.

Accepted Answer

When a company competes with the toughest competition in the world, it faces constant challenges and must constantly improve its strategies and abilities in order to compete effectively. This results in a sharpening of competitive skills.

Question 13

Going global is risk-free.

Accepted Answer

Going global is not risk-free as it involves various challenges like cultural differences, legal regulations, currency fluctuations, and geopolitical risks. Expanding into foreign markets requires extensive research, planning, and investment to mitigate potential risks and ensure success.

Question 14

Which of the following is correct?

Accepted Answer

Option A is correct because a tariff is a tax or duty that a government imposes on goods and services imported into that country. 
Option C is also correct because a quota is a limit on the amount of a product imported into a country. Therefore, both options A and C are correct.

Question 15

Even though large companies must view themselves as "global companies" if they are to succeed,small companies cannot because they have a significant competitive disadvantage in the global environment.

Accepted Answer

Small companies can also view themselves as global companies and can leverage technology and communication channels to compete in the global marketplace. While they may face certain challenges such as limited resources and capital, they can still carve out a niche and succeed on a global scale.

Question 16

Small companies can no longer consider themselves to be strictly domestic businesses in this hotly competitive global environment.

Accepted Answer

With the increase in globalisation and international trade, small companies need to consider expanding their business beyond their domestic market to survive and compete with other businesses on a global level.

Question 17

For many businesses across the world,"going global" is now a matter of survival,not preference.

Accepted Answer

With the increasing competition and globalization of markets, businesses often have to expand and reach out to customers beyond their domestic market in order to maintain growth and profitability. Thus, going global can become a matter of survival for many businesses in today's world.

Question 18

The ________ of a nation includes the beliefs,values,views,and mores that its inhabitants share.

Accepted Answer

Cultural beliefs refer to the shared beliefs, values, and customs of a nation's inhabitants. Political beliefs refer specifically to attitudes towards government and politics, while business beliefs and personal beliefs are more individualistic and do not necessarily reflect the collective values of a society.

Question 19

Globalization is risky.

Accepted Answer

Globalization involves interconnectedness and interdependence among countries, which can lead to both benefits and risks. Risks of globalization can include economic instability, social inequality, cultural homogenization, and environmental degradation. Therefore, globalization can be considered risky.

Question 20

One of the issues an entrepreneur must address before going global is whether or not there is a profitable market in which the firm has the potential to be successful for an extended period of time.

Accepted Answer

Before expanding globally, it is important for an entrepreneur to conduct thorough market research to determine if there is a profitable market and if the company has the potential to succeed in that market for a sustained period of time. Without this analysis, the business may waste resources and fail to achieve success in the new market.

Quiz 12: Global Marketing Strategies

A(n) ________ is a total ban on imports of certain products or all products from a particular nation.