BUS100 FINAL EXAM STUDYGUIDE UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. The value of one nation's currency relative to the
currencies of other countries is referred to as...
Answer:
the exchange rate.
Question:
2. Countries participate in foreign trade because...
Answer:
no nation can produce all of the products its people want and need.
Question:
3. Because of the high volume of motorbikes and scooters
as a common form of transportation in Indonesia, Paulo
wants to sell his combo bike cup/key holders in this
foreign market. Currently, the U.S. dollar is trading at a
higher rate than the Indonesian rupiah. Economically
speaking, how are Paulo's prospects?
Answer:
It depends. The price of products in foreign markets is not dependent on the
value of currency, it is only driven by the demand for goods and services.
Question:
4. Which country is the world's largest exporter?
Answer:
China
Question:
5. The European Union is an example of a trading bloc, or a
________, which has a common external tariff, no internal
tariffs, and the coordination of laws to facilitate trade
between member countries.
Answer:
common market
,Question:
6. When German car manufacturer BMW joined with
Chinese auto manufacturer Brilliance Auto Group to
produce and sell BMW cars in China, this represented
which global marketing strategy?
Answer:
joint venture
Question:
7. What is the current agreement that governs free trade
among the United States, Canada, and Mexico?
Answer:
USMCA
Question:
8. U.S. businesspeople are often accused of ethnocentricity.
This means that...
Answer:
they feel their culture is superior to others.
Question:
9. Recently, two nations experienced a trade dispute over
copyright issues. Country "A" accused Country "B" of
violating international copyright laws. Since both were
members of ________, they appealed to this organization to
mediate the dispute.
Answer:
the WTO (World Trade Organization)
Question:
10. In global trade, the term dumping refers to...
Answer:
the practice of selling products in a foreign country at lower prices than those
charged in the producing country.
Question:
11. In response to the 2022 Russian invasion of Ukraine, the
United States and many European nations halted the
import of products from Russia. This is an example of...
Answer:
embargoes
, Question:
12. As a strategy for reaching global markets, licensing
provides the licensor with several advantages. One
advantage is...
Answer:
the cost of producing and marketing the product in a foreign market is
significantly reduced.
Question:
13. ________is a cost-effective way that many companies
outsource the production of goods, such as smartphones
and footwear. The domestic firm contracts with a foreign
company to produce and private-label the goods
because the price is much cheaper than the domestic
firm could produce in its home market.
Answer:
Contract manufacturing
Question:
14. When a nation exports $72 million worth of products and
services and imports $100 million worth of products and
services, then this nation has a...
Answer:
trade deficit.
Question:
15. Besides the shift of jobs to foreign countries, outsourcing
has other drawbacks, such as...
Answer:
questionable safety and quality issues with finished products.
Question:
16. The difference between money coming into a country
from exports and money leaving a country due to
imports, plus money flows from other factors, is known as
the...
Answer:
balance of payments.
QUESTIONS AND CORRECT ANSWERS
Question:
1. The value of one nation's currency relative to the
currencies of other countries is referred to as...
Answer:
the exchange rate.
Question:
2. Countries participate in foreign trade because...
Answer:
no nation can produce all of the products its people want and need.
Question:
3. Because of the high volume of motorbikes and scooters
as a common form of transportation in Indonesia, Paulo
wants to sell his combo bike cup/key holders in this
foreign market. Currently, the U.S. dollar is trading at a
higher rate than the Indonesian rupiah. Economically
speaking, how are Paulo's prospects?
Answer:
It depends. The price of products in foreign markets is not dependent on the
value of currency, it is only driven by the demand for goods and services.
Question:
4. Which country is the world's largest exporter?
Answer:
China
Question:
5. The European Union is an example of a trading bloc, or a
________, which has a common external tariff, no internal
tariffs, and the coordination of laws to facilitate trade
between member countries.
Answer:
common market
,Question:
6. When German car manufacturer BMW joined with
Chinese auto manufacturer Brilliance Auto Group to
produce and sell BMW cars in China, this represented
which global marketing strategy?
Answer:
joint venture
Question:
7. What is the current agreement that governs free trade
among the United States, Canada, and Mexico?
Answer:
USMCA
Question:
8. U.S. businesspeople are often accused of ethnocentricity.
This means that...
Answer:
they feel their culture is superior to others.
Question:
9. Recently, two nations experienced a trade dispute over
copyright issues. Country "A" accused Country "B" of
violating international copyright laws. Since both were
members of ________, they appealed to this organization to
mediate the dispute.
Answer:
the WTO (World Trade Organization)
Question:
10. In global trade, the term dumping refers to...
Answer:
the practice of selling products in a foreign country at lower prices than those
charged in the producing country.
Question:
11. In response to the 2022 Russian invasion of Ukraine, the
United States and many European nations halted the
import of products from Russia. This is an example of...
Answer:
embargoes
, Question:
12. As a strategy for reaching global markets, licensing
provides the licensor with several advantages. One
advantage is...
Answer:
the cost of producing and marketing the product in a foreign market is
significantly reduced.
Question:
13. ________is a cost-effective way that many companies
outsource the production of goods, such as smartphones
and footwear. The domestic firm contracts with a foreign
company to produce and private-label the goods
because the price is much cheaper than the domestic
firm could produce in its home market.
Answer:
Contract manufacturing
Question:
14. When a nation exports $72 million worth of products and
services and imports $100 million worth of products and
services, then this nation has a...
Answer:
trade deficit.
Question:
15. Besides the shift of jobs to foreign countries, outsourcing
has other drawbacks, such as...
Answer:
questionable safety and quality issues with finished products.
Question:
16. The difference between money coming into a country
from exports and money leaving a country due to
imports, plus money flows from other factors, is known as
the...
Answer:
balance of payments.
