Question 1

The __________ represents the first attempt to establish a truly global mediation centre to resolve international trade disputes.

Accepted Answer

A)  International Trade Court
B)  World Trade Organization
C)  Global Trade Commission
D)  United Nations Arbitration CentreE) All of the above
F) A) and D)

Question 2

The theory of absolute advantage explains most of today's global trade.

Accepted Answer

A) True 
 B)False

Question 3

__________ is the practice of selling a product in foreign countries for a lower price than the good is sold domestically.

Accepted Answer

A)  Deflating
B)  Countertrading
C)  Inflating
D)  DumpingE) B) and D)
F) A) and C)

Question 4

In global markets,cultural differences affect marketing strategies but not management policies.

Accepted Answer

A) True 
 B)False

Question 5

Canada exports most of its merchandise to:

Accepted Answer

A)  the United States.
B)  Japan.
C)  Great Britain.
D)  India.E) A) and D)
F) A) and C)

Question 6

The main goal of the General Agreement on Tariffs and Trade (GATT)was to establish a free trade area among the nations of North America.

Accepted Answer

A) True 
 B)False

Question 7

Non-tariff barriers can be just as detrimental to free trade as tariffs.

Accepted Answer

A) True 
 B)False

Question 8

When Nestle,a Swiss company,purchased Carnation,a U.S.company,it resulted in Carnation becoming a foreign licensee.

Accepted Answer

A) True 
 B)False

Question 9

__________ is the exchange of merchandise or services for other merchandise or services without the exchange of money.

Accepted Answer

A)  Exporting
B)  Bartering
C)  Importing
D)  FactoringE) All of the above
F) A) and B)

Question 10

Canadian subsidiaries of foreign-based companies have played a major role in developing the Canadian economy.

Accepted Answer

A) True 
 B)False

Question 11

Contract manufacturing allows Nike to utilize a German firm to produce their shoes in Europe.

Accepted Answer

A) True 
 B)False

Question 12

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Accepted Answer

A) True 
 B)False

Question 13

Just about anything that can be sold in Canada,can also be sold to buyers in other countries.

Accepted Answer

A) True 
 B)False

Question 14

The purpose of the General Agreement on Tariffs and Trade (GATT) is to:

Accepted Answer

A)  facilitate global trade.
B)  create common market arrangements in specific geographical regions.
C)  negotiate an end to civil wars.
D)  establish a set of international property right laws.E) A) and C)
F) B) and C)

Question 15

Canada has a comparative advantage in coffee and shoes.

Accepted Answer

A) True 
 B)False

Question 16

Canada's main trading partner is the European Union.

Accepted Answer

A) True 
 B)False

Question 17

Importing is the selling of products to another country.

Accepted Answer

A) True 
 B)False

Question 18

One advantage of foreign licensing as a strategy to enter the global market is the sharing of trade secrets.

Accepted Answer

A) True 
 B)False

Question 19

Pillsbury is a firm that operated throughout Canada,even when it was wholly owned by a British company,Grand Metropolitan.Pillsbury is an example of a(n) :

Accepted Answer

A)  licensed venture.
B)  joint venture.
C)  export trading company.
D)  foreign subsidiary.E) None of the above
F) All of the above

Question 20

Which of the following is the least validcriticism when potential investors look at China?

Accepted Answer

A)  China's one party political system is undemocratic.
B)  Human rights issues and other concerns have led some Canadian political leaders to call for the removal of most favoured nation status for China.
C)  The large trade imbalance between Canada and China may lead to friction in trade relations between the two countries.
D)  China's economic growth has been disappointing in recent years.E) All of the above
F) A) and B)

Exam 3: Competing in Global Markets

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Correct AnswerverifiedShow Answer

__________ is the exchange of merchandise or services for other merchandise or services without the exchange of money.

Correct AnswerverifiedShow Answer

Non-tariff barriers can be just as detrimental to free trade as tariffs.

Correct AnswerverifiedShow Answer

Which of the following is the least validcriticism when potential investors look at China?

Correct AnswerverifiedShow Answer

Canadian subsidiaries of foreign-based companies have played a major role in developing the Canadian economy.

Correct AnswerverifiedShow Answer

Canada exports most of its merchandise to:

Correct AnswerverifiedShow Answer

Contract manufacturing allows Nike to utilize a German firm to produce their shoes in Europe.

Correct AnswerverifiedShow Answer

The main goal of the General Agreement on Tariffs and Trade (GATT)was to establish a free trade area among the nations of North America.

Correct AnswerverifiedShow Answer

In global markets,cultural differences affect marketing strategies but not management policies.

Correct AnswerverifiedShow Answer

Just about anything that can be sold in Canada,can also be sold to buyers in other countries.

Correct AnswerverifiedShow Answer

Canada's main trading partner is the European Union.

Correct AnswerverifiedShow Answer

When Nestle,a Swiss company,purchased Carnation,a U.S.company,it resulted in Carnation becoming a foreign licensee.

Correct AnswerverifiedShow Answer

One advantage of foreign licensing as a strategy to enter the global market is the sharing of trade secrets.

Correct AnswerverifiedShow Answer

__________ is the practice of selling a product in foreign countries for a lower price than the good is sold domestically.

Correct AnswerverifiedShow Answer

The theory of absolute advantage explains most of today's global trade.

Correct AnswerverifiedShow Answer

Canada has a comparative advantage in coffee and shoes.

Correct AnswerverifiedShow Answer

The __________ represents the first attempt to establish a truly global mediation centre to resolve international trade disputes.

Correct AnswerverifiedShow Answer

The purpose of the General Agreement on Tariffs and Trade (GATT) is to:

Correct AnswerverifiedShow Answer

Pillsbury is a firm that operated throughout Canada,even when it was wholly owned by a British company,Grand Metropolitan.Pillsbury is an example of a(n) :

Correct AnswerverifiedShow Answer

Importing is the selling of products to another country.

Correct AnswerverifiedShow Answer

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