Introduction To Business: The Ultimate Practice Exam #2

149 Questions | Total Attempts: 183

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Introduction To Business Quizzes & Trivia

Questions and Answers
  • 1. 
    A ____________________ is a partnership in which companies from two different countries join to undertake a major project.
    • A. 

      Multinational cooperative

    • B. 

      Joint venture

    • C. 

      Franchisee transfer

    • D. 

      Recruit affiliation

  • 2. 
    _______ involves the production of private-label goods by a foreign company to which a company then attaches its brand name or trademark.
    • A. 

      Franchising

    • B. 

      Contract manufacturing

    • C. 

      Import trading

    • D. 

      Export trading

  • 3. 
    A ____________________ represents a long-term partnership between two or more companies established to help each firm build competitive market advantages.
    • A. 

      Multinational values

    • B. 

      Shared venture

    • C. 

      Global franchise

    • D. 

      Strategic alliance

  • 4. 
    A specialized organization that assists businesses in creating relationships with foreign customers and suppliers is known as a(n):
    • A. 

      Export trading companies

    • B. 

      International brokerage houses

    • C. 

      Keiretsu

    • D. 

      Global trade bank

  • 5. 
    Pillsbury is a firm that operated throughout the United States, even when it was wholly owned by a British company, Grand Metropolitan. Pillsbury was an example of a:
    • A. 

      Licensed venture

    • B. 

      Joint venture

    • C. 

      Export trading company

    • D. 

      Foreign subsidiary

  • 6. 
    A risk unique to firms with direct investment in a foreign county is the potential takeover of the firm's assets by the government of that country. This takeover is called a(n):
    • A. 

      Hostile takeover

    • B. 

      Political bias

    • C. 

      Unholy alliance

    • D. 

      Expropriation

  • 7. 
    Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called:
    • A. 

      A joint venture

    • B. 

      A foreign subsidiary

    • C. 

      Licensing

    • D. 

      Outsourcing

  • 8. 
    Which of the following assures exporters that they will receive prompt payment for their global market transactions?
    • A. 

      A joint venture

    • B. 

      A Letter of credit

    • C. 

      An Export license agreement

    • D. 

      An Import payment standard

  • 9. 
    Which of the following strategies for reaching global markets involves the lowest risk and offers the lowest profit potential?
    • A. 

      A joint venture

    • B. 

      A foreign subsidiary

    • C. 

      Contract manufacturing

    • D. 

      Licensing

  • 10. 
    A key feature of a(n) ____________________ is that it has manufacturing and marketing facilities in many different countries
    • A. 

      Trade cartel

    • B. 

      Import trading company

    • C. 

      Export forwarding company

    • D. 

      Multinational corporation

  • 11. 
    The federal government created ___________ to help small and medium sized businesses get involved in exporting
    • A. 

      The World Trade Organization

    • B. 

      Federal Export Loan Banks

    • C. 

      Export Assistance Centers

    • D. 

      The Federal Trade Promotion Commission

  • 12. 
    All of the following are recognized as being potential hurdles to be overcome in global trading except:
    • A. 

      Different cultures

    • B. 

      Different languages

    • C. 

      Different money systems

    • D. 

      Lack of market opportunities

  • 13. 
    ____________ occurs when a country lowers the value of its currency relative to the currency of other nations
    • A. 

      Devaluation

    • B. 

      Extrapolation

    • C. 

      Depreciation

    • D. 

      Downward justification

  • 14. 
    __________ is the exchange of merchandise or services for other merchandise or services without the exchange of money.
    • A. 

      Exporting

    • B. 

      Bartering

    • C. 

      Importing

    • D. 

      Factoring

  • 15. 
    Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of:
    • A. 

      Negotiated rate adjustments between the U.S. government and the World Trade Organization

    • B. 

      Decisions by the Federal Reserve Board of Governors in order to implement monetary policy

    • C. 

      Fluctuations in the world price of gold

    • D. 

      Changes in the supply of and/or demand for dollars in the global currency market

  • 16. 
    ____________ describes an attitude held by some American business people that our culture is superior to all others and that everyone else should adopt the American way of doing things.
    • A. 

      Primary culture

    • B. 

      Ethnocentricity

    • C. 

      Cultural institutionalism

    • D. 

      Social myopia

  • 17. 
    Which of the following represents the value of one nation's currency relative to the currencies of another country?
    • A. 

      Euro rate

    • B. 

      Currency rate

    • C. 

      Exchange rate

    • D. 

      Standard of living

  • 18. 
    Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?
    • A. 

      Culture

    • B. 

      Ethnocentricity

    • C. 

      Institutional society

    • D. 

      Social myopia

  • 19. 
    Selling the same product in essentially the same way worldwide is known as:
    • A. 

      Socio-cultural based marketing

    • B. 

      Universal sales standards

    • C. 

      Single-phase marketing

    • D. 

      Global marketing

  • 20. 
    Which of the following describes a complex form of bartering involving several countries?
    • A. 

      Countertrading

    • B. 

      Countertrading

    • C. 

      Counter intuitive

    • D. 

      Geiger counter

  • 21. 
    ______________ is the economic theory advocating that a nation should try to sell more goods to other nations than it buys from them
    • A. 

      Capitalism

    • B. 

      Comparative advantage

    • C. 

      Mercantilism

    • D. 

      Inflation

  • 22. 
    Labor unions and businesses in the heavy equipment industry have asked the U.S. Congress to place a tax on imported equipment in order to make it more expensive. They hope that this will allow U.S. producers to be more competitive. The U.S. heavy equipment industry appears to be seeking a(n):
    • A. 

      Injunction

    • B. 

      Revenue tariff

    • C. 

      Nontariff barrier

    • D. 

      Protective tariff

  • 23. 
    The __________ represents the first attempt to establish a truly global mediation center to resolve international trade disputes
    • A. 

      International Trade Court

    • B. 

      World Trade Organization

    • C. 

      Global Trade Commission

    • D. 

      United Nations Arbitration Center

  • 24. 
    ___________ is the use of government regulations to limit the import of goods and services.
    • A. 

      Trade protectionism

    • B. 

      Fiscal policy

    • C. 

      Countertrade policy

    • D. 

      Monetary policy

  • 25. 
    A(n) __________ refers to a complete ban of the imports or exports of certain products from a specific country.
    • A. 

      Absolute tariff

    • B. 

      Health quarantine

    • C. 

      Quota

    • D. 

      Embargo

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