BUS 110 Exam 2 Questions with Correct Answers Latest Update 2025/2026
Which of the following are likely benefits of exporting? (all that apply)
a. Incr # of potential customers
b. Loss of jobs in home country
c. incr sales and revenue
d. incr competition - Answers a, c
__________ is defined as the set of values, beliefs, rules, and institutions held by a specific group
of people. - Answers Culture
What is the global strategy in which a firm allows a foreign company to produce its products in
exchange for a fee?
a. exporting
b. contract manufacturing
c. franchising
d. licensing - Answers d
Importing involves buying products from other countries while exporting involves:
a. selling products to other countries
b. selling domestic products in this country
c. buying foreign products
d. selling merchandise produced overseas - Answers a
The North American Free Trade Agreement (NAFTA) created a free-trade area among the US,
__________, and __________. - Answers Canada; Mexico
Which of the following are important reasons to do business globally? (all that apply)
a. US consumers seek the best value whether in the US or other countries
,b. competition in the US is decr
c. there are many potential customers in other countries
d. the US economy cannot support a business for very long - Answers a, c
A __________ __________ (also called a trading bloc) is a regional group of countries with a
common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among
members. - Answers common market
The definition of __________ states: the difference between money coming into a country (from
exports) and money leaving the country (from imports) plus money flows coming into or leaving
a country from other factors such as tourism, foreign aid, military expenditures, and foreign
investment.
a. balance of trade
b. trade surplus
c. trade deficit
d. balance of payments - Answers d
An embargo: (all that apply)
a. places a tax on certain imports
b. bans all trade of a certain product
c. bans all trade with a particular country
d. limits the quantity of an import - Answers b, c
Which of the following are disadvantages of international joint ventures? (all that apply)
a. the joint venture may become too large and inflexible
b. shared technology may become obsolete
c. shared marketing expertise
d. access to markets where goods and services must be produced locally - Answers a, b
, The US has had a trade deficit since 1975 because:
a. it sold more goods to other nations than it bought
b. it bought more goods from other nations than it has sold
c. it manufactured more goods than other nations manufactured
d. it had bigger budget deficits than other nations had - Answers b
A company situated in a foreign country that is owned by a parent company located in a
different country, is a foreign __________. - Answers subsidiary
What is the primary function of protective tariffs?
a. to limit the number of products in a certain category that a nation can import
b. to ban the import of certain goods and services
c. to raise the price of imported products so that domestic goods are more competitively priced
- Answers c
Which of the following are functions of export assistance centers (EACs)? (all that apply)
a. scheduling assistance
b. hands-on exporting assistance
c. trade-finance support
d. packaging assistance - Answers b, c
Companies such as United Parcel Service and Walmart have experienced much success by
expanding into the __________ market. - Answers global
The selling of products in a foreign country at lower prices than those charged in the producing
country is called:
a. foreign aid
b. free trade
Which of the following are likely benefits of exporting? (all that apply)
a. Incr # of potential customers
b. Loss of jobs in home country
c. incr sales and revenue
d. incr competition - Answers a, c
__________ is defined as the set of values, beliefs, rules, and institutions held by a specific group
of people. - Answers Culture
What is the global strategy in which a firm allows a foreign company to produce its products in
exchange for a fee?
a. exporting
b. contract manufacturing
c. franchising
d. licensing - Answers d
Importing involves buying products from other countries while exporting involves:
a. selling products to other countries
b. selling domestic products in this country
c. buying foreign products
d. selling merchandise produced overseas - Answers a
The North American Free Trade Agreement (NAFTA) created a free-trade area among the US,
__________, and __________. - Answers Canada; Mexico
Which of the following are important reasons to do business globally? (all that apply)
a. US consumers seek the best value whether in the US or other countries
,b. competition in the US is decr
c. there are many potential customers in other countries
d. the US economy cannot support a business for very long - Answers a, c
A __________ __________ (also called a trading bloc) is a regional group of countries with a
common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among
members. - Answers common market
The definition of __________ states: the difference between money coming into a country (from
exports) and money leaving the country (from imports) plus money flows coming into or leaving
a country from other factors such as tourism, foreign aid, military expenditures, and foreign
investment.
a. balance of trade
b. trade surplus
c. trade deficit
d. balance of payments - Answers d
An embargo: (all that apply)
a. places a tax on certain imports
b. bans all trade of a certain product
c. bans all trade with a particular country
d. limits the quantity of an import - Answers b, c
Which of the following are disadvantages of international joint ventures? (all that apply)
a. the joint venture may become too large and inflexible
b. shared technology may become obsolete
c. shared marketing expertise
d. access to markets where goods and services must be produced locally - Answers a, b
, The US has had a trade deficit since 1975 because:
a. it sold more goods to other nations than it bought
b. it bought more goods from other nations than it has sold
c. it manufactured more goods than other nations manufactured
d. it had bigger budget deficits than other nations had - Answers b
A company situated in a foreign country that is owned by a parent company located in a
different country, is a foreign __________. - Answers subsidiary
What is the primary function of protective tariffs?
a. to limit the number of products in a certain category that a nation can import
b. to ban the import of certain goods and services
c. to raise the price of imported products so that domestic goods are more competitively priced
- Answers c
Which of the following are functions of export assistance centers (EACs)? (all that apply)
a. scheduling assistance
b. hands-on exporting assistance
c. trade-finance support
d. packaging assistance - Answers b, c
Companies such as United Parcel Service and Walmart have experienced much success by
expanding into the __________ market. - Answers global
The selling of products in a foreign country at lower prices than those charged in the producing
country is called:
a. foreign aid
b. free trade
