Chapter 9 MCQ

Question 1

USMCA stands for
Question 1Answer

USA, Maine, Canada

USA, Mexico, Canada

USA, Mexico, California, Alabama

USA, Maine, California, Alabama.

Answer 1

USA, Mexico, Canada

Question 2

Which statement is a potential PRO for Canada under the USMCA.

Question 2Answer

65% of auto parts must come from one of the three USMCA countries to avoid tariffs, up from 62.5% under NAFTA.

The Agreement requires 70% of a car’s steel and aluminum to originate in North America.

10% of auto parts must come from one of the three USMCA countries to avoid tariffs.

None of the above

Answer 2

The Agreement requires 70% of a car’s steel and aluminum to originate in North America.

Question 3

Which of the following statement is correct?

Question 3Answer

Globalization can be considered a process that is expanding the degree and forms of cross-border transactions among people, assets, goods, and services.

Globalization refers to the growth in direct foreign investment in regions across the world

Globalization reflects the shift toward increasing economic interdependence—the process of generating one world economic system or a global economy

All of the Above

Answer 3

All of the Above

Question 4

The following is a Pull Factor

Question 4Answer

Potential for Sales Growth

Shift towards Democracy

Reduction in trade Barriers

All of the Above

Answer 4

Potential for Sales Growth

Question 5

Mercantilism, essentially, is the economic policy of:

Question 5Answer

accumulating financial wealth through trade surpluses.

accumulating financial wealth through trade Deficits.

accumulating financial wealth by borrowing from the IMF.

accumulating financial wealth through the WTO.

Answer 5

accumulating financial wealth through trade surpluses.

Question 6

Which of the following is a potential benefit of a Multinational Corporation

Question 6Answer

Encourages economic development

Introduces new technologies

Creates employment

all of the above

Answer 6

all of the above

Question 7

According to the Text, Canada’s top trading partner is:

Question 7Answer

China

USA

Germany

Japan

Answer 7

USA

Question 8

Tariff is:

Question 8Answer

A tax placed on goods entering a country.

A tax placed on goods leaving a country.

A tax placed on goods that are made in the country.

None of the above.

Answer 8

A tax placed on goods entering a country.

Question 9

When a company, such as Nike, chooses to contract the manufacturing of its apparel and footwear to another company in a developing nation, this is referred to as what type global business activity?

Question 9Answer

Franchising

Direct Investment

Joint Venture

Outsourcing

Answer 9

Outsourcing

Question 10

According to the text, which company is ranked as number 1 Top franchise in Canada?

Question 10Answer

McDonald’s

Pizza Pizza

Subway

Tim Hortons

Answer 10

Tim Hortons

Question 11

Why reasons did Target “go global” when it first came to Canada?

Answer 11

Pull factor: Potential for Sales Growth

Push factor: The force of competition (e.g. Walmart)