BUS-100
Assignment 2
(20 Questions – 5 Points)
Chapter 03:
1. One reason countries trade with other countries is that even
technologically advanced nations cannot produce all the products their people want and need.
( ) True
( ) False
2. Global trade is the exchange of goods and services between
countries
( ) True
( ) False
3. A country has an absolute advantage if the production of a
specific product is more efficient than all other nations.
( ) True
( ) False
4. Small businesses are less involved in global trade today than in
the past.
( ) True
( ) False
5. A favorable balance of trade occurs when the value of a country’s exports exceeds the value of its imports.
( ) True
( ) False
6. A trade deficit is the same as a favorable balance of trade.
( ) True
( ) False
7. Dumping is the practice of selling products in foreign markets
at lower prices than what domestic firms are charging for the
same product.
( ) True
( ) False
8. When a firm agrees to license its product, it gains notoriety but
gives up all revenues.
( ) True
( ) False
9. One advantage of franchising is that the parent corporation
does not need to concern itself with adapting to the culture of
another country.
( ) True
( ) False 1 10. A joint venture is a partnership in which two or more companies join to undertake a major project. All parties commit financing and risk to the project.
( ) True
( ) False Chapter 04:
11. Legal behavior and ethical behavior are basically the same.
( ) True
( ) False
12. Ethical behavior refers to the standards that are accepted by
society as right or wrong.
( ) True
( ) False
13. Punishing business leaders who have broken the law may help
restore trust in the free-market system and leaders in general.
( ) True
( ) False
14. Ethical behavior involves the clear and easy choice of right and
wrong actions toward others.
( ) True
( ) False
15. Making ethical choices is always easy.
( ) True
( ) False
16. When facing an ethical dilemma, it is often helpful to discuss
the situation with your supervisor because ethical decisions
will always withstand scrutiny.
( ) True
( ) False
17. Business behavior determines the ethics of society. We can improve society’s moral and ethical behavior by first making a
commitment to improving business’s moral and ethical behavior.
( ) True
( ) False
18. Management can create an environment in which unethical behavior can develop.
( ) True
( ) False
19. Effective corporate values start with employees and develop
throughout the organization to include top management.
( ) True
( ) False
2 20. Compliance-based ethics codes are based on preventing unlawful behavior.
( ) True
( ) False 3
