BUS 100 Final Exam with Verified
Answers
Ch 2: 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 - ✔✔Trade deficit
Sovereign wealth funds (SWFs) are a growing form of foreign direct investment. The size of
these funds and the fact that they are investments from government coffers of other nations
might be a cause for concern. More specifically, some fear - ✔✔the governments who offer
these funds may obtain sensitive technologies or gain control of strategic resources
What is the current agreement that governs free trade among the United States, Canada, and
Mexico? - ✔✔USMCA
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? - ✔✔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.
Germany exports billions in pharmaceutical products each year, but must rely on imports of
olive oil, tea, and organic produce from other countries to meet internal demand. Germany
produces some of these items, but at a high cost. This practice follows the theory of -
✔✔Comparative advantage
____ 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. - ✔✔Contract manufacturing
Using government regulations to limit the import of goods and services is called - ✔✔Trade
protectionism
,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. - ✔✔the WTO (World Trade
Organization)
As the United States does not produce enough sugar to meet food manufacturer's demands, it
imports additional sugar cane, mostly from Central and South America. But for decades, the
United States has restricted the amount of foreign sugar allowed into the country to about 15
percent of the market. This is an example of which trade policy? - ✔✔Import quotas
Besides the shift of jobs to foreign countries, outsourcing has other drawbacks, such as -
✔✔questionable safety and quality issues with finished products
Which country is the world's largest exporter? - ✔✔China
U.S. businesspeople are often accused of ethnocentricity. This means that - ✔✔They feel their
culture is superior to others
The law that specifically prohibits "questionable" or "dubious" payments to foreign officials to
secure business contracts is called the - ✔✔Foreign Corrupt Practices Act
When the value of exports from a country exceeds the value of imports into that country, there
is a(n) - ✔✔favorable balance of trade
The European Union is an example of a trading bloc, or a ________Blank, which has a common
external tariff, no internal tariffs, and the coordination of laws to facilitate trade between
member countries. - ✔✔common market
Selling products to another country is known as - ✔✔exporting
,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 - ✔✔balance of
payments
Countries participate in foreign trade because - ✔✔no nation can produce all the products its
people want and need.
The placement of FedEx retail shipping facilities within Walgreen's drug stores has proven to be
a successful strategic alliance because both companies benefit from this arrangement. As a
global marketing strategy, an important characteristic of a strategic alliance is - ✔✔participant
companies do not share costs or profits
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 - ✔✔embargoes
As a strategy for reaching global markets, licensing provides the licensor with several
advantages. One advantage is - ✔✔the cost of producing and marketing the product in a
foreign market is significantly reduced.
In global trade, the term dumping refers to - ✔✔the practice of selling products in a foreign
country at lower prices than those charged in the producing country.
Electrical appliance manufacturers need to be concerned about the kind and availability of
electricity in the global marketplace. If a compatibility problem were to exist, it would be the
result of a(n) ________Blank difference. - ✔✔technological
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? - ✔✔joint venture
The value of one nation's currency relative to the currencies of other countries is referred to as
- ✔✔the exchange rate
, Ch 3: Government and business leaders are being held to - ✔✔higher ethical standards than in
the past.
The most basic question one should ask when faced with an ethical dilemma is - ✔✔Is it legal?
Besides environmental groups, unions, and socially conscious investors, a relatively new type of
watchdog organization that reports on corporate social responsibility efforts is - ✔✔secondary
market companies.
With regard to socially responsible behavior, U.S. businesses are - ✔✔demanding socially
responsible behavior from international suppliers, particularly in the areas of environmental
standards and human rights issues.
Which statement reflects the difficulty companies face when requiring international suppliers
to follow environmental and human rights standards set by U.S. firms? - ✔✔Both economics
and culture enter into the discussion of fairness concerning international suppliers who do
business with U.S. firms.
Individuals who report unethical or illegal behavior within an organization are referred to as -
✔✔whistleblowers.
Proponents of corporate social responsibility (CSR) strongly believe in benevolence; however,
they still want their businesses to be profitable. In the long run, they believe - ✔✔CSR can lead
to even more profits.
Your company is aware of major flaws in the design of one of its products. Your supervisor
directed you to lie to a client about the defects in order to get the sale, knowing that the
product would soon be discontinued. Your supervisor also stated that if you refused, you would
lose your opportunity for promotion. You would probably consider this situation to be a(n) -
✔✔ethical dilemma.
Answers
Ch 2: 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 - ✔✔Trade deficit
Sovereign wealth funds (SWFs) are a growing form of foreign direct investment. The size of
these funds and the fact that they are investments from government coffers of other nations
might be a cause for concern. More specifically, some fear - ✔✔the governments who offer
these funds may obtain sensitive technologies or gain control of strategic resources
What is the current agreement that governs free trade among the United States, Canada, and
Mexico? - ✔✔USMCA
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? - ✔✔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.
Germany exports billions in pharmaceutical products each year, but must rely on imports of
olive oil, tea, and organic produce from other countries to meet internal demand. Germany
produces some of these items, but at a high cost. This practice follows the theory of -
✔✔Comparative advantage
____ 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. - ✔✔Contract manufacturing
Using government regulations to limit the import of goods and services is called - ✔✔Trade
protectionism
,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. - ✔✔the WTO (World Trade
Organization)
As the United States does not produce enough sugar to meet food manufacturer's demands, it
imports additional sugar cane, mostly from Central and South America. But for decades, the
United States has restricted the amount of foreign sugar allowed into the country to about 15
percent of the market. This is an example of which trade policy? - ✔✔Import quotas
Besides the shift of jobs to foreign countries, outsourcing has other drawbacks, such as -
✔✔questionable safety and quality issues with finished products
Which country is the world's largest exporter? - ✔✔China
U.S. businesspeople are often accused of ethnocentricity. This means that - ✔✔They feel their
culture is superior to others
The law that specifically prohibits "questionable" or "dubious" payments to foreign officials to
secure business contracts is called the - ✔✔Foreign Corrupt Practices Act
When the value of exports from a country exceeds the value of imports into that country, there
is a(n) - ✔✔favorable balance of trade
The European Union is an example of a trading bloc, or a ________Blank, which has a common
external tariff, no internal tariffs, and the coordination of laws to facilitate trade between
member countries. - ✔✔common market
Selling products to another country is known as - ✔✔exporting
,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 - ✔✔balance of
payments
Countries participate in foreign trade because - ✔✔no nation can produce all the products its
people want and need.
The placement of FedEx retail shipping facilities within Walgreen's drug stores has proven to be
a successful strategic alliance because both companies benefit from this arrangement. As a
global marketing strategy, an important characteristic of a strategic alliance is - ✔✔participant
companies do not share costs or profits
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 - ✔✔embargoes
As a strategy for reaching global markets, licensing provides the licensor with several
advantages. One advantage is - ✔✔the cost of producing and marketing the product in a
foreign market is significantly reduced.
In global trade, the term dumping refers to - ✔✔the practice of selling products in a foreign
country at lower prices than those charged in the producing country.
Electrical appliance manufacturers need to be concerned about the kind and availability of
electricity in the global marketplace. If a compatibility problem were to exist, it would be the
result of a(n) ________Blank difference. - ✔✔technological
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? - ✔✔joint venture
The value of one nation's currency relative to the currencies of other countries is referred to as
- ✔✔the exchange rate
, Ch 3: Government and business leaders are being held to - ✔✔higher ethical standards than in
the past.
The most basic question one should ask when faced with an ethical dilemma is - ✔✔Is it legal?
Besides environmental groups, unions, and socially conscious investors, a relatively new type of
watchdog organization that reports on corporate social responsibility efforts is - ✔✔secondary
market companies.
With regard to socially responsible behavior, U.S. businesses are - ✔✔demanding socially
responsible behavior from international suppliers, particularly in the areas of environmental
standards and human rights issues.
Which statement reflects the difficulty companies face when requiring international suppliers
to follow environmental and human rights standards set by U.S. firms? - ✔✔Both economics
and culture enter into the discussion of fairness concerning international suppliers who do
business with U.S. firms.
Individuals who report unethical or illegal behavior within an organization are referred to as -
✔✔whistleblowers.
Proponents of corporate social responsibility (CSR) strongly believe in benevolence; however,
they still want their businesses to be profitable. In the long run, they believe - ✔✔CSR can lead
to even more profits.
Your company is aware of major flaws in the design of one of its products. Your supervisor
directed you to lie to a client about the defects in order to get the sale, knowing that the
product would soon be discontinued. Your supervisor also stated that if you refused, you would
lose your opportunity for promotion. You would probably consider this situation to be a(n) -
✔✔ethical dilemma.
