247. (p. 73) __________ determines the value of currency according to supply and demand determined by global
currency traders.
A. The currency rate
248. (p. 73–74) __________ is the exchange of merchandise or services for other merchandise or services without
the exchange of money.
D. Factoring
249. (p. 73) When a currency is very weak the only possibility of trade is through the use of:
D. factoring.
250. (p. 73) __________ is lowering the value of a nation’s currency relative to other currencies.
A. Revaluation
251. (p. 74) __________ is a complex form of bartering in which several countries may be involved, each trading
goods for goods or services for services.
A. Venture bartering
252. (p. 73) Under the floating exchange rate system, the value of a country’s currency is determined by:
253. (p. 73) ____________ occurs when a country lowers the value of its currency relative to the currency of other
nations.
D. Downward justification
254. (p. 74) The legislation that prohibits U.S. businesses from making “questionable” or “dubious” payments to
foreign officials to secure business contracts is the ________ Act.
D. Global Good Conduct
255. (p. 74) To be successful in global markets it’s often useful to contact:
A. the local Better Business Bureau.
256. (p. 71) Foreigners sometimes comment on the ethnocentric attitudes of U.S. business people. This indicates
that American business people:
A. follow the philosophy of “when in Rome, do as the Romans.”
D. lack of market opportunities
258. (p. 74–75) Differences in electrical power and transportation systems can present special problems for U.S.
firms when attempting to enter global markets. These represent the __________ forces that impact global
business.
D. governmental
259. (p. 74) An influential foreign government official has approached your firm requesting a large sum of money.
In return for this bribe, the official promises that your firm will receive preferential treatment in future
government contracts. You refuse the request, explaining that the _________ Act of the United States prohibits
you from making such payments.
D. Celler-Kefauver Act
260. (p. 73) Hennessy Hardware, a U.S. retailer, buys much of its inventory from Asian countries. Hennessy
Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from
which Hennessy imports.
D. floated unpredictably
261. (p. 71) When touring overseas, U.S. rock groups experience different cultures. Which of the following is an
example of a sociocultural force the rock groups would be exposed to?
A. transportation systems
262. (p. 71) Casey is typical of many U.S. businesspeople. Casey feels the U.S. culture should be the model for the
rest of the world, and that the “American way” of doing things is the best. Casey is guilty of:
D. counter culture.
263. (p. 71) Workers in the nation of MTV-land prefer managers that forcefully tell employees what to do and
how to do it. Conversely, employees in the U.S. prefer to participate in decision making in the workplace. This
__________ difference between MTV-land workers and U.S. employees represents a management challenge for
firms trading in the global market.
A. environmental
264. (p. 74) A Mexican firm has agreed to trade petroleum to an American importer in return for U.S. made
computers. This arrangement is an example of:
A. a letter of credit arrangement.
265. (p. 74) Jamaica wants to buy vehicles from Ford Motor Company in exchange for Jamaican bauxite. Ford,
however, does not have a need for Jamaican bauxite, but does have a need for computer monitors. Ford may
trade vehicles to Jamaica, which then trades bauxite to another country, say India, which then exchanges
computer monitors with Ford. This is an example of:
A. a letter of credit arrangement.
266. (p. 73) Cristy, a U.S. citizen, is preparing for a trip to Europe in the near future. She read in the Wall Street
Journal recently that the dollar had weakened against the euro. If this is correct, Cristy should expect:
267. (p. 73) Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other
currencies are the result of:
A. negotiated rate adjustments between the U.S. government and the World Trade Organization.
268. (p. 73) Paula, a U.S. businessperson who closely follows international business conditions, recently read a
newspaper article predicting that the value of the dollar will soon fall. If this article is correct, Paula should
D. prices of imported goods to fall, but prices of U.S. goods sold overseas to rise.
269. (p. 75) Many countries use ________________ policies as a way to protect their domestic industries from
foreign competition.
A. export limitation
270. (p. 75) ___________ is the use of government regulations to limit the import of goods and services.
D. Monetary policy
271. (p. 75) Trade protectionism:
D. encourages dumping by foreign industries in the home country.
272. (p. 75) ______________ is the economic theory advocating that a nation should try to sell more goods to
other nations than it buys from them.
A. Capitalism
273. (p. 75–76) The two basic types of tariffs are:
A. goods and services.
274. (p. 75) A ________ tariff is designed to raise the price of imported products so that domestic goods are more
competitively priced.
D. revenue
275. (p. 76) ________ tariffs are designed to raise money for the government.
A. Regulatory
276. (p. 76) In an effort to protect domestic jobs, some countries will place a limit on the number of certain types
of products that can be imported. These limits are called:
277. (p. 76) A(n) __________ refers to a complete ban on importing or exporting of products from a specific
country.
A. absolute tariff
278. (p. 76) Which of the following government policies creates an environment of restrictive standards intended
to make it difficult for foreign firms to successfully sell their products?
A. monetary tariffs
D. establish a set of international property right laws.
280. (p. 76) The __________ represents the first attempt to establish a truly global mediation center to resolve
international trade disputes.
D. United Nations Arbitration Center
281. (p. 77) A _____________ is a regional group of countries that have no internal tariffs, a common external
tariff, and the coordination of laws to facilitate exchange among the member countries.
A. trade cartel
282. (p. 77) The European Union created a single monetary unit to replace the national currencies of twelve
member nations. This common currency is known as the:
A. e-dollar.
283. (p. 78) The three countries participating in NAFTA are:
A. Canada, Panama, and the United States.
284. (p. 78) The common market arrangement that groups Brazil, Argentina, Paraguay, Uruguay, Chile, and
Bolivia is called the:
A. South American Six.
285. (p. 76) U.S. firms that produce sophisticated military hardware are prohibited from exporting that equipment
to “unfriendly” governments, such as Iran. This complete ban on exporting sensitive technology to specific
countries is an example of a(n):
A. import quota.
286. (p. 76) The U.S. government has announced a 5 million-pound annual limit on beef imported from Argentina.
This type of trade restriction is called a(n):
A. embargo.
287. (p. 75) Traders in the 18th century were encouraged to focus on selling their nation’s goods in the global
market to create a favorable balance of trade. Nations attempted to sell more goods to other nations than they
bought from other nations. This approach to global trading is called:
D. isolationism.
288. (p. 76) Denmark requires foreign companies that sell butter in Denmark to sell it in cubes, not tubs. This type
of requirement is known as a:
A. protective tariff.