Which of the following promotional strategies is being used by a company that hires a
fleet of trucks to drive through village squares and hand out free trial packages to
potential end users?
A) push strategy
B) pull strategy
C) retrenchment strategy
D) differentiation strategy
Answer:
In the interbank market, the process of aggregating the currencies that one bank owes
another and then carrying out that transaction is called ________.
A) swapping
B) dumping
C) hedging
D) clearing
Answer:
The exchange rate at which two parties agree to exchange currencies on a specified
future date is called a ________ rate.
A) forward
B) prime
C) spot
D) cross
Answer:
Which of the following would the government of Zucoland most likely experience as a
benefit of joining the trading bloc?
A) increased national sovereignty
B) increased military security
C) trade diversion
D) higher-wage employment
Answer:
Today, the Southern Common Market (MERCOSUR) acts as a(n) ________.
A) economic union
B) political union
C) customs union
D) preferential trading area
Answer:
The GDP per capita of a country is higher than that of Thailand. If the GDP per capita
of the country is adjusted for PPP, the country’s revised GDP is lower than that of
Thailand. Which of the following is most likely true about the country?
A) There are fewer goods available for purchase in the country than in Thailand.
B) The cost to buy everyday goods in the country is approximately the same as in
Thailand.
C) It costs less to buy everyday goods in the country than in Thailand.
D) It costs more to buy everyday goods in the country than in Thailand.
Answer:
In which of the following accounts would GMI’s purchase of the company in Brazil
appear?
A) the current account of the United States
B) the current account of Brazil
C) the capital account of the Thailand
D) the capital accounts of Brazil and the United States
Answer:
Freeland’s protection of its national identity is an example of a(n) ________.
A) political motive
B) economic motive
C) cultural motive
D) social motive
Answer:
Susan thinks that it would be easiest setting up production facilities in a country whose
government leaders are elected directly by the wide participation of the people or by
their representatives. Which of the following political systems should the country have?
A) anarchist
B) democratic
C) theocratic
D) facist
Answer:
Which of the following is an instrument that governments use to promote trade?
A) embargoes
B) tariffs
C) export financing
D) administrative delays
Answer:
A ________ strategy typically increases the cost structure for international companies
and forces them to charge higher prices to recover such costs.
A) retrenchment
B) global
C) multidomestic
D) blue ocean
Answer:
One of Betty’s employees, Dan, oversees the hot dog joint’s decor. He designs all menu
cards in shades of red and gold because those are considered lucky colors in China. He
also uses his knowledge of Feng Shui when designing the building’s interior. The
cultural component Dan is involved in is ________.
A) ethics
B) stratification
C) imperialism
D) aesthetics
Answer:
________ are traded in Luxembourg and London and represent a specific number of
shares in an outside company.
A) Common stock
B) Bills of lading
C) Revocable letters of credit
D) Global Depository Receipts
Answer:
Which of the following communication strategies adapts both the product and its
marketing communication to suit the target market?
A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation
Answer:
Which of the following statements is true regarding total quality management (TQM)?
A) TQM emphasizes on a single effort at the start to improve the quality of its products.
B) TQM largely increases the responsibility on each individual to focus on quality.
C) TQM philosophy initially took hold in the U.S.
D) TQM applies solely to an employee’s activities based inside a factory.
Answer:
In a quoted exchange rate of $1.69/British pound, the British pound is called the
________.
A) base currency
B) counter currency
C) cross currency
D) quoted currency
Answer:
The smallest portion of the total world trade comprises trade between ________.
A) high-income and middle-income nations
B) low-income and middle-income nations
C) developed countries
D) First World member countries
Answer:
The ________ theory states that countries produce and export goods that require
resources available in abundance and import goods that require resources in short
supply.
A) new trade
B) absolute advantage
C) international product life cycle
D) factor proportions
Answer:
Which of the following was a prominent mercantilist nation?
A) U.S.
B) China
C) Britain
D) Japan
Answer:
The World Bank was created by the ________.
A) Jamaica Agreement
B) Bretton Woods Agreement
C) Smithsonian Agreement
D) Plaza Accord
Answer:
________ allows labor representatives in Germany to participate in high-level company
meetings by actually voting on proposed actions.
A) Centralization
B) Codetermination
C) Individualism
D) Authoritarianism
Answer:
A caste system is a system of social stratification in which ________.
A) a person’s social status is decided by his acquired wealth
B) a person’s position in society depends upon his educational qualifications and
achievements
C) people are born into a social ranking, with no opportunity for social mobility
D) people join highly exclusive associations that encourage external interaction
Answer:
________ is the instantaneous purchase and sale of a currency in different markets for
profit.
A) Currency hedging
B) Currency arbitrage
C) Currency speculation
D) Currency conversion
Answer:
The international product life cycle theory was put forth for ________.
A) service goods
B) abundant resources
C) manufactured goods
D) natural resources
Answer:
The danger of trade dependency is that ________.
A) it often leads to the exploitation of developed countries
B) political turmoils in a country might affect all dependent countries
C) the countries involved in trade often get into rivalry over trade tariff issues
D) it is difficult to end trade activities with current trade partners and find new trade
partners
Answer:
The process undertaken by these twenty-six countries is an example of ________.
A) foreign direct investment
B) protectionism
C) economic nationalism
D) regional economic integration
Answer:
A fixed asset can also be referred to as a ________ asset.
A) liquid
B) current
C) tangible
D) trading account
Answer:
Which of the following is true about the theory of absolute advantage?
A) The theory accepts the mercantilist idea that international trade is a zero-sum game.
B) The theory approves the objective of national governments to acquire wealth through
restrictive trade policies.
C) The theory emphasizes that nations should open their doors to trade so that people
can obtain more goods at cheaper rates.
D) The theory measures a nation’s wealth by how much gold and silver it has on
reserve.
Answer:
Which of the following is a result of trade creation?
A) The demand for goods tends to increase.
B) Purchasing power of consumers decreases.
C) Consumers have a limited choice for selection of goods.
D) Imported goods are seldom available at lower prices.
Answer:
Which of the following statements is true about cultural influences?
A) Culture and trade are independent of each other.
B) Unwanted cultural influence in a nation can cause governments to block imports that
it believes are harmful.
C) The cultures of countries are independent of the effects of exposure to the people and
products of other cultures.
D) The culture of the United States is readily adapted into the local culture of countries
all over the world.
Answer: