Reference no: EM133134188
1- When doing due diligence prior to establishing a development centre in a foreign country where it wants to use local workers, what should be the primary concern of a Canadian electronics firm?
a-availability of skilled labour
b-a low degree of competition
c-a low tariff rate
d-the stability of the local currency
2-How can currency devaluation be an advantage to a country?
a-The debts a country may have incurred are forgiven.
b-It can encourage investing from other countries with higher valued currencies.
c-The country with the devalued currency can import goods for cheaper.
d-The country with devalued currency can exchange for other currencies at a lower rate.
3- A consequence of information being widespread on the Internet is
a- it can limit the number of customers.
b- it can make intellectual property more difficult to protect.
c- it can make products more difficult to market.
d- it can make trade more difficult for companies.
4- Whether a country has _________ largely affects the potential for foreign sales of a particular item.
a-a high per-capita GDP
b-a large population
c- few trade barriers
d- an absolute or comparative advantage
5- Which of the following can be a negative result of a country receiving a World Bank loan?
a- To balance its budget, the country is forced to cut vital social programs.
b-In an effort to build and expand its infrastructure, a nation has to devalue its currency.
c- By accepting a loan, a country is forced to pay it back using precious metals that often are meant for emergencies.
d- By accepting a loan, a country is forced to hand over parts of its governance to the World Bank.
6- Companies will trade with other countries to
a- develop innovative products.
b- minimize operation costs.
c- spread risk.
d-move operations to a cheaper country.
7- Exporters trading with countries with soft currencies might prefer to barter because
a-soft currencies are only accepted regionally.
b-soft currencies are worth less than commodities.
c-soft currencies cannot be readily converted into other currencies.
d-soft currencies can only be traded for other soft currencies.
8-Countries with large populations are attractive to companies because
a-they have cheaper work forces.
b-they have high per-capita incomes.
c-of the sheer size of their markets.
d-domestic demand is high.
9-Which group in a developed country has the most to fear from increasing free trade?
a-trade unions
b-international shipping companies
c-wholesalers
d-corporate shareholders
10-By working to remove farm subsidies in developed countries, the WTO aims to
a-assist the agricultural sector in developing countries.
b-decrease competition between developing and developed countries.
c-allow developing countries to purchase food cheaper.
d-remove tariffs and other barriers to agricultural trade.