chapt 4 warm up
1.Products produced in the United States and then shipped for sale to other countries are referred to as? _______.
A.
deficits
B.
subsidies
C.
exports
D.
imports
E.
outsourcing
2.Products produced in the United States and then shipped for sale to other countries are referred to as? _______.
A.
deficits
B.
subsidies
C.
exports
D.
imports
E.
outsourcing
3.Which of the following BEST describes a negative balance of? trade?
A.
The amount of money flowing out of the country exceeds the amount of money flowing into the country.
B.
The value of a? country’s imports exceeds the value of its exports.
C.
The value of a? country’s currency has depreciated over time against the currencies of other countries.
D.
The amount of money flowing into the country exceeds the amount of money flowing out of the country.
E.
The value of a? country’s exports exceeds the value of its imports.
4.Which of the following determines the value of a? country’s exchange rate under a floating exchange rate? system?
A.
The World Bank
B.
The monetary authorities of the nation
C.
World Trade Organization
D.
The International Monetary Fund
E.
Supply and demand
5.Which form of international expansion involves the development of a mutually beneficial partnership with a company in a foreign? country?
A.
Branch offices
B.
Strategic alliance
C.
Foreign direct investment
D.
Independent agents
E.
Licensing
6.Which form of international expansion involves the development of a mutually beneficial partnership with a company in a foreign? country?
A.
Branch offices
B.
Strategic alliance
C.
Foreign direct investment
D.
Independent agents
E.
Licensing
7. Question Help
The members of a society or culture with uncertainty avoidance would be likely to? _______.
A.
prefer structure and predictability over ambiguity and change
B.
be stimulated by change and thrive on new experiences
C.
accept power and authority on the basis of a? person’s position in an organization
D.
adopt a? long-term versus a? short-term outlook on life and work
E.
believe that the needs of the group should come before the needs of the individual
8. Question Help
Which of? Hofstede’s cultural dimensions addresses whether members of a culture adopt a? long-term versus a? short-term outlook on? life, work, and other elements of? society?
A.
Time orientation
B.
Power orientation
C.
Uncertainty orientation
D.
Goal orientation
E.
Social orientation
9.In an effort to protect its rice? industry, Japan places limits on the amount of rice that can be imported. This is an example of? a(n) _______.
A.
local content law
B.
tariff
C.
subsidy
D.
embargo
E.
quota
10. Question Help
A certain portion of manufactured goods used in? federally-funded transportation projects in the United States must be produced domestically. This is an example of? a(n) _______.
A.
embargo
B.
business practice law
C.
quota
D.
tariff
E.
local content law
chapt 4
1.Angelina has a small business in the U.S. in which she produces? one-of-a-kind jewelry using? semi-precious gemstone beads. She purchases a supply of gemstone beads from a company in? Belgium, and sells several necklaces to a buyer in Canada. The beads are? _______; the necklaces are? _______.
A.
?exports; imports
B.
?exports; foreign direct investment
C.
?imports; exports
D.
?imports; outsourced
E.
a comparative? advantage; an absolute advantage
2.Which of the following terms identifies the model explaining why countries engage in international? trade?
A.
Comparative advantage
B.
National competitive advantage
C.
Strategic advantage
D.
Competitive advantage
E.
Absolute advantage
3.The? climate, altitude, and terrain in India are particularly suitable for growing bananas. Although bananas are grown in other? countries, India’s production far exceeds the production of other countries. This would suggest that India has? a(n) _______ advantage in the production of bananas.
A.
strategic
B.
relative
C.
comparative
D.
unconditional
E.
absolute
4.The? climate, altitude, and terrain in India are particularly suitable for growing bananas. Although bananas are grown in other? countries, India’s production far exceeds the production of other countries. This would suggest that India has? a(n) _______ advantage in the production of bananas.
A.
strategic
B.
relative
C.
comparative
D.
unconditional
E.
absolute
5.
The country of Belize exported? $395 million of goods in 2009 and imported goods worth? $616 million during the same year. This would suggest that Belize has? a(n) _______.
A.
positive balance of trade
B.
absolute advantage
C.
trade surplus
D.
trade deficit
E.
favorable balance of payments
6.A? country’s _______ is the flow of money into or out of a? country, including the value of its imports and? exports, money spent on? tourism, foreign aid? programs, and currency trading.
A.
balance of trade
B.
trade surplus
C.
exchange rate
D.
national competitive advantage
E.
balance of payments
7.The value of goods imported into Mexico exceeds the value of goods exported by that country. This suggests that Mexico has a? _______.
A.
trade deficit
B.
positive balance of payments
C.
trade surplus
D.
floating exchange rate
E.
negative balance of payments
8.Many electronics sold in the United States are imported from Taiwan because Taiwan can produce such products more efficiently than companies in the U.S. This is an example of? a(n) _______.??
A.
qualified advantage
B.
national competitive advantage
C.
absolute advantage
D.
subsidy
E.
comparative advantage
9.A nation is extremely efficient in the production of electronics.? However, its climate and terrain make it difficult to grow grain. Economists suggest that the country should? _______.
A.
concentrate on production of electronics and import grain from another nation
B.
produce both electronics and grain in order to remain? self-sufficient
C.
concentrate on the production of grain so that it improves its efficiency
D.
import the resources it needs to effectively produce grain
E.
produce electronics only if it has an absolute advantage
10.Last? year, a Pacific Island nation imported over? $3.2 billion of goods and reported a trade surplus. This would suggest that the nation had? _______.
A.
a fixed exchange rate system
B.
exported less than? $3.2 billion worth of goods
C.
exported more than? $3.2 billion worth of goods
D.
a negative balance of trade
E.
money spent by tourists and the value of its exports exceeding? $3.2 billion
11.?Regina’s Rug Emporium offers the widest variety of Persian and Oriental rugs in the area. Regina regularly travels worldwide to find and buy the most exquisite and unusual rugs that foreign producers have to offer. Regina is? a(n) _______.
A.
importer
B.
franchiser
C.
exporter
D.
licensor
E.
multinational firm
12.When a firm wants to enter the international? market, which of the following represents the lowest level of international? involvement, and hence the LEAST? risk?
A.
Establishment of branch offices
B.
Formation of a strategic alliance
C.
Direct foreign investment
D.
Licensing arrangement
E.
?Importing/exporting
13.In order to enter the market in Eastern? Europe, DNC Enterprises enters into a contract with a firm in the Ukraine that allows that firm to use its brand? name, operating? procedures, and proprietary technology in making its products. This BEST describes? _______.
A.
a strategic alliance
B.
foreign direct investment
C.
outsourcing
D.
a licensing arrangement
E.
importing
14.Samsung Electronics? Co., headquartered in? Seoul, Korea, has announced plans to build a new smartphone factory in Vietnam. Samsung is engaged in? _______.
A.
countertrading
B.
outsourcing
C.
a strategic alliance
D.
dumping
E.
foreign direct investment
15.Albertson Corp. is headquartered in the United States and has manufacturing facilities in South Carolina and? Arkansas, as well as numerous sales offices in the U.S. The company recently opened a manufacturing facility in Ireland in order to capitalize on the European market. The company would be considered? a(n) _______.
A.
international firm
B.
franchise
C.
cartel
D.
multinational firm
E.
independent agent
16.Wired? Beverages, a producer of energy? drinks, enters into a contract with a firm in South America in which the South American firm can produce and market its energy drinks in South America. Wired Beverages will receive a percentage of the South American? firm’s sales of the energy drinks. This is an example of? _______.
A.
outsourcing
B.
foreign direct investment
C.
offshoring
D.
a licensing arrangement
E.
a strategic alliance
17.Wired? Beverages, a producer of energy? drinks, enters into a contract with a firm in South America in which the South American firm can produce and market its energy drinks in South America. Wired Beverages will receive a percentage of the South American? firm’s sales of the energy drinks. This is an example of? _______.
A.
outsourcing
B.
foreign direct investment
C.
offshoring
D.
a licensing arrangement
E.
a strategic alliance
18.
Employees in the United States are comfortable with? commission- and? incentive-based pay? plans, whereas employees in Italy and Mexico prefer pay plans that are more? predictable, like seniority pay. Which of? Hofstede’s cultural dimensions would explain this? difference?
A.
Uncertainty orientation
B.
Power orientation
C.
Goal orientation
D.
Social orientation
E.
Time orientation
19.
Employees from a culture that is characterized by power respect? _______.
A.
place a high premium on? status, money, and power
B.
prefer to work as members of groups or? teams, rather than individually
C.
expect to have some degree of input in decisions made by their superiors
D.
would favor structured situations in which rules and procedures are clearly set forth
E.
would expect their superiors to make decisions with little input from employees
20.
The cultural dimension that describes the degree to which people in a culture tolerate or feel threatened by ambiguity is known as? _______ orientation.
A.
power
B.
goal
C.
social
D.
influence
E.
uncertainty
21.People who are collectivist in their values? _______.
A.
emphasize the needs of the group over the needs of the individual
B.
value? assertiveness, competitiveness, and materialism
C.
are willing to accept an unequal distribution of power within a society or organization
D.
feel threatened by ambiguity and prefer structure and predictability
E.
emphasize the importance of quick results
22.A manufacturer of microwave ovens exports its products to another country at a price lower than the cost of production in the home country in order to quickly gain market share. This practice is known as? _______.
A.
dumping
B.
comparative advantage
C.
an embargo
D.
a trade cartel
E.
foreign direct investment
23.A group of American firms accused Japanese manufacturers of selling flat screens used in laptop computers at prices as much as? 70% less than manufacturing cost. This is an example of? _______.
A.
a cartel
B.
an embargo
C.
a tariff
D.
dumping
E.
a trade deficit
24.A complete ban on the importing or exporting of products from a specific country is? a(n) _______.
A.
cartel
B.
quarantine
C.
embargo
D.
quota
E.
tariff
25.
Farmers receive payments from the government if prices for? wheat, corn,? soybeans, and certain other crops fall below a certain level in order to protect farmers from cheaper prices charged by foreign competitors. This is an example of? a(n) _______.
A.
quota
B.
tariff
C.
absolute advantage
D.
embargo
E.
subsidy
