Business Management Test #2 Exam Questions And Answers 2024

Business Management Test #2 Exam Questions And Answers 2024 TRUE OR FALSE international business involves the buying selling and trading of goods and services across national boundaries. - answerTRUE TRUE OR FALSE Nations trade with other nations to obtain resources that would otherwise be unavailable to them. - answerTRUE TRUE OR FALSE Fit Rite a firm based in the united states buys metal parts from china to manufacture its fasteners in doing so the company is engaged in exporting. - answerfalse TRUE OR FALSE when a nation imports more than it exports it has a positive balance of trade - answerfalse TRUE OR FALSE Trade deficits can help businesses succeed create more jobs ad improve the standard of living - answerfalse TRUE OR FALSE a business that is engaging in importing and exporting must be familiar with the ratio at which one nations currency can be exchanged for another. in other words the business must be familiar with the balance of trade - answerfalse TRUE OR FALSE A common reason for establishing quotas or tariffs is to encourage dumping - answerfalse TRUE OR FALSE Political unrest in countries often creates a hostile environment for foreign business and can act as a barrier to international trade - answertrue TRUE OR FALSE Sociocultural differences such as variations in body languages and personal space rarely have an impact on international business - answerfalse TRUE OR FALSE The general agreement on tariffs and trade (GATT) provided a forum for tariff negotiations and a place where international trade problems could be resolved - answerTrue TRUE OR FALSE Many U.S Companies have taken advantage of mexico low labor costs and proximity to the united states to set up maquiladoras - answertrue TRUE OR FALSE The Asia-pacific economic cooperation(APEC) is a trade agreement between Asian countries and does not include the united states - answerfalse TRUE OR FALSE The international monetary fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation - answertrue TRUE OR FALSE Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product - answerfalse TRUE OR FALSE Licensing is a good option for small manufactures wanting to launch a well known brand internationally - answertrue TRUE IR FALSE As an international business opportunity direct investment provides the least amount of control but is also the least expensive way to participate in foreign trade - answerfalse TRUE OR FALSE Multinational corporations (MNCs) are rarely targeted by activists because they provide so many benefits to the countries in which they do business - answerfalse TRUE OR FALSE Companies doing business internationally have traditionally used globalization strategy - answerFalse TRUE OR FALSE A global strategy involves standardized products for the whole world - answertrue Bolivia south america is the only country in the world that able to grow a rare plant that is used to produce a healing ointment for arthritis patients because Bolivia is the only country with access to this plant it has... - answerAbsolute advantage Suppose their are several countries that are efficient at producing coffee beans and Brazil is one of those countries while Brazil is efficient at producing coffee beans it is inefficient at producing electronics because of this Brazil sells its coffee beans to other countries and buys electronics from other countries this scenario exemplifies the concept of what - answerComparative advantage ...........is the transferring of manufacturing or other tasks such as data processing to countries where labor and supplies are less expensive - answeroutsourcing why has outsourcing become a controversial practice in the U.S - answerOutsourcing takes away jobs that could be accomplished by workers in the U.S Countries like china and Vietnam are flooded with counterfeit videos movies computer software furniture and clothing why is this? - answerCopying is a tradition in those countries What social and cultural issues should a manager consider before doing business in a foreign country? - answerits important for a manager to understand social and cultural differences between countries. Because cultural norms are rarely written down careful research is crucial. social and cultural differences include differences in spoken and written language body language personal space family roles perceptions of time national and religious holidays local customs and measurement systems TRUE OR FALSE Entrepreneurship is the process of creating and managing a business to achieve desired objectives - answerTRUE TRUE OR FALSE Small business by their very nature are small and therefore do not contribute significantly to job Creation - answerFALSE TRUE OR FALSE Manufacturing business are attractive to entrepreneurs because of the low start up costs required to establish a manufacturing business - answerFALSE TRUE OR FALSE