Reference no: EM132293978
1. Which of the following is true of a group of nations that have formed a cartel?
The member nations are barred from indulging in trade with other nations.
They act as a monopoly to generate a competitive advantage in world markets.
They can compete with each other in terms of price and quality. They can only import but cannot export.
The member nations prohibit free trade among themselves.
2. Which of the following organizations was created in 1995 by the Uruguay Round and is based in Geneva, Switzerland?
The Federal Trade Commission
The World Trade Organization
The North American Free Trade Association
The European Union The Asia-Pacific Economic Cooperation
3. Which of the following is true of the North American Free Trade Agreement (NAFTA)?
It makes it tougher for businesses in the United States to invest in Mexico.
It provides protection for intellectual property. It complicates the country-of-origin rules.
It has virtually eliminated tariffs on goods traded between the United States and Cuba.
It enforces trade restrictions on agricultural goods.
4. Which of the following trade alliances is likely to promote economic cooperation between Australia, Canada, and Singapore?
The Association of Southeast Asian Nations (ASEAN)
The European Economic Community (EEC)
The North American Free Trade Agreement (NAFTA)
The European Union (EU) The Asia-Pacific Economic Cooperation (APEC)
5. From the perspective of the United States, the process of foreign companies transferring tasks and jobs to U.S. companies is called _____.
importing
factoring
benchmarking
dumping insourcing
6. Companies that want a high degree of control and are willing to invest considerable resources in international business may consider _____ as their method of entry into foreign markets.
strategic alliances
outsourcing
franchising exporting
direct investment
7. A country barters the surplus coffee beans it grows for other agricultural products grown in a neighboring country. There is no exchange of currency between these countries. The type of business arrangement between the two countries can be regarded as a(n) _____.
countertrade arrangement
cartel arrangement
embargo
dumping arrangement
franchise
8. Which of the following is true of export agents? They usually produce goods themselves.
They usually handle domestic transactions for firms.
They never take products on consignment.
they are responsible for storage and transportation of a product they sell.
They are not interested in making a profit for services they provide.
9. In international business, an advantage of trading through an export agent instead of directly is that the company does not have to deal with:
a middleman.
rising labor prices.
foreign currencies.
the problem of providing discounts.
the procurement of resources.
10. Which of the following is an example of a global strategy?
McDonald's in Vietnam offering McPork sandwiches specifically for Vietnam consumers
Consumer electronics companies developing different marketing strategies for different foreign markets
Starbucks standardizing its products across the United States and other countries
General Motors creating electric vehicles specifically for the Chinese market
International fast food chains refraining from using pork or beef only in the Indian market