BUSN 115 Week 2 Quiz With (verified) Latest Grade A Answers

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BUSN 115 Week 2 Quiz BUSN 115 Week 2 quiz 1. Question: (TCO 3) An unfavorable balance of trade occurs when the value of: Your Answer: imports equals the value of exports ... imports exceeds the value of exports cash inflows are equal to the value of cash outflows exports exceed the value of imports Instructor Explanation: Chapter 3 Page 64 2. Question: (TCO 3) Which of the following is considered when calculating a country's balance of payments? Your Answer: military expenditures state unemployment domestic inflation rates foreign inflation rates Instructor Explanation: Chapter 3 Page 64 3. Question: (TCO 3) The theory of comparative advantage exists because: Your Answer: there are too many products and services to choose from today customers are always comparing the quality of service from companies in the same industry no nation can produce all the products its people want and need free trade agreements became the trend during the past 15 years Instructor Explanation: Chapter 3 Page 61 4. Question: (TCO 3) An American firm recently criticized a Chinese steel producer for charging a lower price for its products in the United States than it charges in China. If proven to be true, the Chinese firm has engaged in: Your Answer: industrial protectionism a low labor cost strategy dumping exchange rate manipulation Instructor Explanation: Chapter 3 Page 65 5. Question: (TCO 1) Workers in the nation of Argentina prefer managers who forcefully tell employees what to do and how to do it. Conversely, employees in the U.S. prefer to participate in decision making in the workplace. This __________ difference between Argentinian workers and U.S. workers represents a management challenge for firms trading in the global market Your Answer: geo-political economic socio-cultural regulatory Instructor Explanation: Chapter 3 Page 72 6. Question: (TCO 3) Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of: Your Answer: negotiated rate adjustments between the U.S. government and the World Trade Organization decisions by the Federal Reserve Board of Governors in order to implement monetary policy fluctuations in the world price of gold changes in the supply of and/or demand for dollars in the global currency market Instructor Explanation: Chapter 3 Page 74 7. Question: (TCO 3) Firms such as McDonald's, Pizza Hut, and KFC have entered the global market by offering investors the opportunity to set up: Your Answer: licensed trade offices independent exporting houses multinational subsidiaries franchises Instructor Explanation: Chapter 3 Page 68 8. Question: (TCO 3) Using contract manufacturing as a strategy to reach global markets offers firms the advantage of: Your Answer: significant start-up costs reduced risks T increased volatility currency stability Instructor Explanation: Chapter 3 Page 69 9. Question: (TCO 1) A form of foreign direct investment, in which a domestic company purchases a company in a foreign country to produce a similar product or service is a: Your Answer: licensor joint venture foreign subsidiary host company Instructor Explanation: Chapter 3 Page 70 10. Question: (TCO3) The concept of free trade means: Your Answer: buyers and sellers contract with each other and offer some goods at no cost goods and services can be traded freely across borders without political and/or economic barriers there is no exchange of currency for these products there is no exchange of currency, but the trading partners determine the value of the product and perform a bartering process to exchange goods Instructor Explanation: Chapter 3 Page 61 11. Question: (TCO 3) Monique's Unique Tile Boutique offers decorative tile from around the world. The owner regularly travels overseas to locate the best and most unusual tile that foreign producers have to offer. Monique participates in _____________ Your Answer: importing licensing dumping exporting Instructor Explanation: Chapter 3 Page 60 12. Question: (TCO 3) __________ occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries Your Answer: Comparative advantage Absolute advantage Complete advantage Dumping advantage Instructor Explanation: Chapter 3 Page 62 13. Question: (TCO 3) Many of the toy products sold in the United States are imported from Taiwan because the Taiwanese can produce these products more efficiently than U.S. companies. This is an example of: Your Answer: Bilateral advantage Comparative advantage Absolute advantage Unilateral advantage Instructor Explanation: Chapter 3 Page 61 14. Question: (TCO 3) The federal government created ___________ to help small and medium sized businesses get involved in exporting Your Answer: the World Trade Organization Federal Export Loan Banks Export Assistance Centers the Federal Trade Promotion Commission Instructor Explanation: Chapter 3 Page 67 15. Question: (TCO 3) An advantage of forming a joint venture is: Your Answer: no shared costs or risk a perpetual arrangement it's a good strategy for entering new markets in which you have never had a presence it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture Instructor Explanation: Chapter 3 Page 70 [Show More]

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