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Exam 3: The World Marketplace: Business Without Borders

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Question 51

Multiple Choice

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In the context of economic considerations when entering a foreign market, which of the following is an example of an energy infrastructure in a country?

A) Railroads
B) Cell phone coverage
C) Power plants
D) Radio

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Question 52

Multiple Choice

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Sloimekia can manufacture more of a certain kind of cloth than its neighboring countries, although they all have the same amount of resources for the cloth's production. In this scenario, which of the following statements is true of Sloimekia?

A) It has a higher trade surplus than its neighboring countries.
B) It enjoys an absolute advantage in terms of the particular cloth it produces.
C) It enjoys the highest balance of trade among its neighboring countries.
D) It has a lower balance of payments and a lower trade deficit for the particular cloth produced.

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Question 53

Multiple Choice

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In the context of international trade, which of the following companies is facing the barrier of legal differences?

Uniesia, an Asian company, wants to set up a production facility in Maurinia, an African country, because of the low labor costs in the country. However, Uniesia is unable to do so because of the situation of constant civil unrest in Maurinia. In the given scenario, Uniesia is most likely facing the barrier of _____.

Which of the following is the most costly form of foreign direct investment?

Which of the following strategies for reaching global markets is a specialized type of licensing?

Companies that choose to export products to a foreign country spend more to enter that market than companies that choose to build their own factories.

In the late 1970s, LarceCo, a tea manufacturing company, entered the market of a developing country called Fantesnia. As there was a lack of hard currency in Fantesnia, LarceCo was involved in a barter system. It exchanged its tea-based products for the local vodka of Fantesnia. This scenario illustrates that LarceCo had engaged in _____.

Who among the following is most likely to benefit in a case where there is a weak dollar against a euro?

Alice, the global marketing director of a multinational electronic goods manufacturing firm, is assigned the task of expanding her firm in new markets. She learns that hiring labor is expensive and that the required technical manufacturing equipment is unavailable in the international market. In this scenario, which of the following is most likely affecting the global trade of Alice's firm?

Vieorien, a company based in the country of Dannistel, has permitted a foreign company the rights to produce its products and to use the Vieorien trademark. However, Vieorien does not have the authority or the rights to dictate the business operations of the foreign company. In this scenario, the foreign company that Vieorien deals with is the _____.

Inicell Inc., an American camera manufacturing company, wanted to import a few camera parts from Ruelia, an Asian company. However, the American government passed a taxation law that stated that a tax of 4% would be levied on all electronic imports. In this scenario, the American government imposed a(n) _____.

Wichasha, an African country, exports barley and cotton worth $100 million to Illema, a European country, and it imports sugarcane worth $25 million from Illema. As such, the total value of Wichasha's exports is higher than the total value of its imports. This difference between the value of Wichasha's exports and imports is known as _____.

__________refers to selling products in foreign nations that have been produced or grown domestically.

Grettzee, a musical instruments manufacturing company, imports high-quality maple wood from Resumbro, a South Asian country where maple is found in abundance. Which of the following is most likely to have influenced Grettzee's decision to import raw materials from Resumbro?

Negacho, a food and beverage company, introduced a new flavor of potato chips called South Indian Chillis. It received a positive response from consumers, which prompted Brex Mex, another food company, to introduce its own Szechuan flavored chips. In this scenario, which of the following is most likely to have influenced Brex Mex to produce a product similar to Negacho's?

The _____ is an international cooperative of 188 member countries, working together to reduce poverty in the developing world.

Quotas are taxes levied against imports.

Which of the following countries exemplifies the concept of opportunity cost?

Boson Corp., an American software development company, wants to expand its business in international markets. Therefore, it buys property in Greitch, a South Asian country, and sets up a production facility despite the high costs involved. In this scenario, Boson Corp. is most likely involved in _____.