Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

AFM 131 > Module 1 > Flashcards

Module 1 Flashcards

1
Q

A major concern voice by Canadian critics of NAFTA is that it would result in:
A) Increases illegal immigration from Mexico.
B) Higher prices for consumer goods.
C) Loss of jobs in the Canadian economy.
D) National security problems.

A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q 
Many economists and business experts contend that \_\_\_\_\_ will likely be the growth market of the future
A)	The Middle East.
B)	South America.
C)	Africa.
D)	Asia
A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

One reason why Canada and the United States trade so much is:
A) NAFTA requires that member countries trade with each other wherever possible before working with other countries
B) Each country understands the culture and needs of the other
C) Standard shipping rates between the two countries
D) A common currency

A

B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q 
The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called:
A)	A trading bloc.
B)	A cartel.
C)	A royalty.
D)	An outsource agreement.
A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

An unfavourable balance of trade occurs when the value of:
A) Exports exceed the value of imports
B) Cash inflows are equal to the value of cash outflows
C) Imports equals the value of exports
D) Imports exceeds the value of exports

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q 
A Mexican firm has agreed to trade petroleum to an American importer in return for Canadian made computers. This arrangement is an example of:
A)	A non-tariff trade
B)	Arbitrage
C)	A credit arrangement
D)	Countertrading
A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q 
Pepsi has entered into a long-term contract with a South African beverage business. The contract calls for the South African firm to produce and market Pepsi in South Africa. Pepsi will receive a royalty on each case of soda sold. This is an example of:
A)	Licensing.
B)	A foreign subsidiary.
C)	A joint venture.
D)	Foreign direct investment
A

A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q 
Japanese automobile producers sold more of their production overseas than they sold in Japan. Their business strategy is:
A)	Dumping
B)	Importing
C)	licensing
D)	exporting
A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q 
Companies such as McDonald’s, Pizza Hut, and KFC, have entered the global market by offering investors the opportunity to set up:
A)	Multinational subsidiaries
B)	Joint ventures
C)	Franchises
D)	Producer cartels
A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q 
U.S. firms that produce sophisticated military hardware are prohibited from exporting that equipment to unfriendly governments, such as Iran. The complete ban on exporting sensitive technology to specific countries is an example of a(n):
A)	Embargo
B)	Import quota
C)	Tariff
D)	Boycott
A

A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q 
\_\_\_\_\_\_\_ for a country occurs when it has a monopoly on producing a product.
A) 	Dumping advantage
B)	Comparative advantage
C)	Absolute advantage
D) 	Complete advantage
A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q 
A(n) \_\_\_\_\_\_\_\_ refers to a complete ban of the imports or exports of certain products from a specific country.
A)	Absolute tariff
B)	Embargo
C)	Quota
D)	Quarantine
A

B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q 
Differences in electrical power can present special problems for Canadian firms when attempting to enter global markets. This represents the \_\_\_\_\_\_\_\_\_\_\_ forces that impact global business.
A)	Governmental
B)	Economic
C)	Physical and environmental
D)	Legal and regulatory
A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q 
If a Swiss chocolate firm purchases a Canadian ice cream manufacturer, the Canadian ice cream manufacturer becomes a:
A)	Global joint venture
B)	Global franchise
C)	Contract manufacturer
D)	Foreign subsidiary
A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Last year, the nation of Kwansai reported that it had a favorable balance of trade even though it imported $11 billion worth of goods. This indicates that Kwansai:
A) Exported less than $11 billion worth of goods
B) Overpriced the value of its exports
C) Exported $11 billion worth of goods
D) Exported more than $11 billion worth of goods

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q 
The United States has stopped come Candians goods from entering the country because it said that the information on the labels was too small. This is an example of a(n): 
A)	import quota
B) 	embargo
C) 	non-tariff barrier
D)	tariff
A

C

17
Q

The only deposits of a rare mineral known as shozet are found in the nation of Swanland. Since no other nation has deposits of shozet, Swanland has a(n) _______ in the production of this mineral.
A) comparable advantage
B) absolute advantage
C) protected advantage cartel

A

B

18
Q 
All of the following are recognized as being potential hurdles to be overcome in global trading, EXCEPT:
A) 	different languages.
B) 	different money systems.		
C) 	lack of market opportunities.
D) 	different cultures.
A

C

19
Q 
Ford trades vehicles to Jamaica, which then trades them to China in exchange for computers. This is an example of:		
A) 	countertrading.
B) 	an import quota.
C) 	a trading bloc.
D) 	a common market.
A

A

20
Q

The value of goods imported into France exceeds the value of French exports. This indicates that France:
A) will incur a budget deficit.
B) has a balance of trade deficit.
C) utilizes high tariffs.
D) will experience an exchange rate decrease.

A

B

21
Q 
The difference between money coming into and leaving the country plus money flows from factors such as tourism and foreign aid is referred to as the:
A) 	trade deficit
B)	balance of trade
C)	balance of payments
D) 	balance of money flows
A

C

22
Q 
Which of the following strategies for competing in the global markets involves the lowest potential?
A)	Licensing
B) 	Joint venture
C)	Foreign subsidiary
D)	Contract manufacturing
A

A

23
Q 
A \_\_\_\_\_\_ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.
A)	progressive
B)	restrictive
C)	national
D)	 protective
A

D

24
Q

Which of the following strategies for competing in the global markets involves the lowest profit potential?

a) Licensing
b) Joint Venture
c) Contract manufacturing
d) foreign subsidiary

A

A

25
Q 
A major concern voiced by Canadian critics of NAFTA is that it would result in:
A) 
higher prices for consumer goods.
B) 
national security problems.

C)
loss of jobs in the Canadian economy.
D)
increased illegal immigration from Mexico

A

C

26
Q

Last year, the nation of Kwansai reported that it had a favourable balance of trade even though it imported $11 billion worth of goods. This indicates that Kwansai:
A)
exported $11 billion worth of goods.
B)
exported less than $11 billion worth of goods.

C)
exported more than $11 billion worth of goods.
D)
overpriced the value of its exports.

A

C

27
Q 
The United States has stopped some Canadian goods from entering the country because it said that the information on the labels was too small. This is an example of a(n):
A) 
tariff.
B) 
embargo.
C) 
import quota.
D) 
non-tariff barrier.
A

D

AFM 131 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions