GB 350 ALL MAIN EXAMINATION ANSWERS AND
QUESTIONS SET A+
✔✔International trade can result from a country's shortage of __________ - ✔✔natural
resources
Example: China has a significant amount of gold that they export to other countries
✔✔Economic Factors - US - ✔✔-Large land mass not bordered by hostile governments
-Expansive coastline
-Farmland (large amount of export opportunity)
-Water
-Coal, oil and gas
-People (more immigrants than any other country)
✔✔Exchange Rate - ✔✔value of one nation's currency expressed in terms of another
nation's currency
✔✔Balance of Trade - ✔✔exports - imports
✔✔The United States has a policy on imported sugar from Brazil that is described as
follows: US businesses are allowed to import 300 kgs of sugar at a tariff rate of 6.2%.
Any imports in excess of 300 kgs will be subject to a tariff of 12%. Which of the following
is described by this scenario?
A. Absolute Quota
B. Embargo
C. Free trade agreement
D. Tariff rate quota - ✔✔Tariff Rate Quota
✔✔Dumping - ✔✔sale of an exported product at a lower price than that charged for a
similar product in the "home" market of the exporter
✔✔Dumping may occur as a result of exporter business strategies: - ✔✔-Trying to
increase overseas market share
, -Temporarily distributing products to overseas markets to offset slack demand at home
-Lowering unit costs by exploiting large-scale production
-Attempting to maintain stable prices during periods of exchange rate fluctuations
✔✔Gray Markets - ✔✔Practice of selling and distributing products outside the normal
distribution channels
Legal, but typically void warranty/guarantee deals
✔✔Which of the following statements about gray markets is true?
A. Gray market products are illegal
B. If the consumer purchases a gray market good, the product may not be covered by
the company's warranty/guarantee
C. Gray markets are only found in countries with communist governments
D. All of the above - ✔✔B. If the consumer purchases a gray market good, the product
may not be covered by the company's warranty/guarantee
✔✔Consumer Behavior - ✔✔why/how/when of what people think/feel/do
✔✔WHY -Consumer Behavior - ✔✔Sustainability and Portion Control among reasons
for "exploding wine-in-a-can market
✔✔HOW - Consumer Behavior - ✔✔Three shopper types
✔✔WHEN - Consumer Behavior - ✔✔Hump Day hits the spot for social media
engagement
✔✔Perceived Value - ✔✔net worth a consumer expects to obtain from a particular
behavior
Example: FTC sues Match.com for fraudulent accounts
✔✔Derived Value - ✔✔consumers evaluations of net worth that results from a particular
behavior
✔✔Utilitarian Value - ✔✔value derived from a product or service that helps the
consumer solve problems and accomplish tasks
✔✔Hedonic Value - ✔✔acts as an end in itself rather than as a means to an end
✔✔Jack rides a roller coaster because he enjoys the thrill of it. What type of value does
roller coaster riding provide Jack with?
A. Utilitarian
B. Big
C. Unrealized
QUESTIONS SET A+
✔✔International trade can result from a country's shortage of __________ - ✔✔natural
resources
Example: China has a significant amount of gold that they export to other countries
✔✔Economic Factors - US - ✔✔-Large land mass not bordered by hostile governments
-Expansive coastline
-Farmland (large amount of export opportunity)
-Water
-Coal, oil and gas
-People (more immigrants than any other country)
✔✔Exchange Rate - ✔✔value of one nation's currency expressed in terms of another
nation's currency
✔✔Balance of Trade - ✔✔exports - imports
✔✔The United States has a policy on imported sugar from Brazil that is described as
follows: US businesses are allowed to import 300 kgs of sugar at a tariff rate of 6.2%.
Any imports in excess of 300 kgs will be subject to a tariff of 12%. Which of the following
is described by this scenario?
A. Absolute Quota
B. Embargo
C. Free trade agreement
D. Tariff rate quota - ✔✔Tariff Rate Quota
✔✔Dumping - ✔✔sale of an exported product at a lower price than that charged for a
similar product in the "home" market of the exporter
✔✔Dumping may occur as a result of exporter business strategies: - ✔✔-Trying to
increase overseas market share
, -Temporarily distributing products to overseas markets to offset slack demand at home
-Lowering unit costs by exploiting large-scale production
-Attempting to maintain stable prices during periods of exchange rate fluctuations
✔✔Gray Markets - ✔✔Practice of selling and distributing products outside the normal
distribution channels
Legal, but typically void warranty/guarantee deals
✔✔Which of the following statements about gray markets is true?
A. Gray market products are illegal
B. If the consumer purchases a gray market good, the product may not be covered by
the company's warranty/guarantee
C. Gray markets are only found in countries with communist governments
D. All of the above - ✔✔B. If the consumer purchases a gray market good, the product
may not be covered by the company's warranty/guarantee
✔✔Consumer Behavior - ✔✔why/how/when of what people think/feel/do
✔✔WHY -Consumer Behavior - ✔✔Sustainability and Portion Control among reasons
for "exploding wine-in-a-can market
✔✔HOW - Consumer Behavior - ✔✔Three shopper types
✔✔WHEN - Consumer Behavior - ✔✔Hump Day hits the spot for social media
engagement
✔✔Perceived Value - ✔✔net worth a consumer expects to obtain from a particular
behavior
Example: FTC sues Match.com for fraudulent accounts
✔✔Derived Value - ✔✔consumers evaluations of net worth that results from a particular
behavior
✔✔Utilitarian Value - ✔✔value derived from a product or service that helps the
consumer solve problems and accomplish tasks
✔✔Hedonic Value - ✔✔acts as an end in itself rather than as a means to an end
✔✔Jack rides a roller coaster because he enjoys the thrill of it. What type of value does
roller coaster riding provide Jack with?
A. Utilitarian
B. Big
C. Unrealized
