Please answer all questions.
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1 | |
Differences in the importance of personal space are an example of which type of international trade barrier? |
| | A) | political |
| | B) | technological |
| | C) | legal |
| | D) | economic |
| | E) | cultural |
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2 | |
The United States' former absolute advantage in producing oil drilling equipment is being challenged by which country? |
| | A) | Great Britain |
| | B) | Colombia |
| | C) | China |
| | D) | Japan |
| | E) | Switzerland |
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3 | |
An arrangement in which one company allows another company to use its name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a royalty is called |
| | A) | licensing. |
| | B) | a joint venture. |
| | C) | direct investment. |
| | D) | a trading company. |
| | E) | importing. |
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4 | |
The balance of payments includes which of the following? |
| | A) | a country's balance of trade |
| | B) | foreign investments |
| | C) | foreign aid |
| | D) | tourist expenditures |
| | E) | all of the above |
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5 | |
Companies that want more control and are willing to invest considerable resources in |
| | A) | trading company |
| | B) | licensing |
| | C) | direct investment |
| | D) | contract manufacturing |
| | E) | exporting |
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6 | |
A specific amount of money levied on each unit of a product brought into the country is a(n) |
| | A) | fixed tariff. |
| | B) | protective tariff. |
| | C) | duty-free tariff. |
| | D) | ad valorem tariff. |
| | E) | value-added tariff. |
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7 | |
Many countries in Asia, Africa, and South America |
| | A) | are less-developed countries. |
| | B) | are industrialized nations. |
| | C) | have a high demand for nonessential products. |
| | D) | have relatively high per capita incomes. |
| | E) | none of the above. |
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8 | |
The most recent round of GATT provided new rules to prevent dumping. This round was the |
| | A) | Kennedy Round. |
| | B) | Uruguay Round. |
| | C) | Merry-Go Round. |
| | D) | American Round. |
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9 | |
Before moving outside their own borders, companies must conduct |
| | A) | internal audits. |
| | B) | TQM programs. |
| | C) | language seminars. |
| | D) | joint ventures. |
| | E) | environmental analyses. |
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10 | |
If Ecuador wants to purchase heavy equipment from a Canadian company but lacks |
| | A) | International Monetary Fund |
| | B) | World Bank |
| | C) | Citicorp Bank |
| | D) | International Bank |
| | E) | Eximbank |
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11 | |
When a U.S. firm buys watches from Switzerland, they |
| | A) | have an absolute advantage. |
| | B) | are decreasing the trade deficit. |
| | C) | are importing the watches. |
| | D) | are exporting the watches. |
| | E) | are making a big mistake. |
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12 | |
When Colgate-Palmolive developed a hand-powered washing machine for households in LDCs that do not have electricity, Colgate-Palmolive was following a |
| | A) | multinational strategy. |
| | B) | strategic alliance. |
| | C) | marketing strategy. |
| | D) | globalization strategy. |
| | E) | joint venture. |
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13 | |
When IBM and Apple joined together in hopes of obtaining a competitive advantage on a worldwide basis, this exemplified a |
| | A) | cartel. |
| | B) | joint venture. |
| | C) | direct investment. |
| | D) | strategic alliance. |
| | E) | contract manufacturing deal. |
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14 | |
Wendy's, Pizza Hut, and McDonald's are well-known ____ with international visibility. |
| | A) | franchisers |
| | B) | trading companies |
| | C) | joint ventures |
| | D) | contract manufacturers |
| | E) | strategic alliances |
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15 | |
When the Vermont Trading Company of Burlington, Vermont, sells teddy bears to a firm in Sweden, Vermont Trading Company |
| | A) | is increasing the trade deficit. |
| | B) | is importing the teddy bears. |
| | C) | has an absolute advantage. |
| | D) | is making a big mistake. |
| | E) | is exporting the teddy bears. |
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16 | |
Which of the following is an example of a globalized product? |
| | A) | different formulations of Hills Bros. Coffee in France, the United Kingdom, and Canada |
| | B) | Lever Brothers bar soaps tailored to different countries' water conditions |
| | C) | American clothing, movies, and music |
| | D) | Colgate-Palmolive's hand-powered washing machine for LDCs |
| | E) | all of the above |
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17 | |
How many nations abide by GATT rules? |
| | A) | 23 |
| | B) | 12 |
| | C) | more than 300 |
| | D) | more than 100 |
| | E) | about 50 |
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18 | |
Nabisco allows a British firm to use its name, formula, and brands in return for a royalty. This arrangement is known as |
| | A) | exporting. |
| | B) | licensing. |
| | C) | direct investment. |
| | D) | contract manufacturing. |
| | E) | a joint venture. |
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19 | |
The highest level of international business involvement is the |
| | A) | multinational corporation. |
| | B) | joint venture. |
| | C) | strategic alliance. |
| | D) | franchise. |
| | E) | contract manufacturer. |
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20 | |
Which of the following organizations was established by industrialized nations to loan money to underdeveloped and developing countries? |
| | A) | OPEC |
| | B) | NAFTA |
| | C) | The World Bank |
| | D) | The IMF |
| | E) | The United Nations |
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2002 McGraw-Hill Higher Education