Quiz 3 2020, questions and answers PDF

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Various multiple choice questions to chapter 3...

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Chapter 3 Quiz:

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Question 1 0 out of 0.5 points

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of: Answer s:

contract manufacturing

joint venture cooperative agreement a licensing agreement limited partnership

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Question 2 0.5 out of 0.5 points

Why do many people fear trade and globalization? Answer s:

Trade and globalization will increase per capita income. An open economy spurs innovations with fresh ideas from abroad. Many fear trade and globalization will lead to massive job losses. Free trade and globalization lead to increased productivity. Export jobs often pay less than other jobs.

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Question 3 0 out of 0.5 points

Which of the following statements about dumping is true? Answer s:

Dumping is legal along as it is government subsidized. The government has passed laws to make dumping illegal. Canada has never been a victim of dumping. Dumping is a form of export quota.

Dumping is a type of tariff

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Question 4 0 out of 0.5 points

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n): Answer s:

direct foreign investment

limited partnership international corporation international cooperative cooperative cartel

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Question 5 0.5 out of 0.5 points

In 1997, Russia and Ukraine exported carbon steel plate into Canada at a price much lower than the countries were found guilty of charging the identical steel in their home markets. Russia and Ukraine were engaged in: Answer s:

export pricing dumping unloading dunking add-on pricing

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Question 6 0.5 out of 0.5 points

Which of the following is NOT one of the advantages associated with multinational corporations? Answer s:

the capacity to tap into new technology from around the world the ability to shift production from one plant to another as market conditions change the ability to sidestep regulatory problems

positive exchange rates significant labor savings, even in highly unionized countries

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Question 7 0 out of 0.5 points

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries. Answer s:

Federal Reserve Bank Central Bank World Bank International Funding Bank International Monetary Fund

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Question 8 0 out of 0.5 points

The most fundamental reason for the growth in world trade is probably due to: Answer s:

the creation of free trade areas the need for businesses to expand their markets fluctuating exchange rates cultural differences political unrest

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Question 9 0.5 out of 0.5 points

The World Bank's emphasis has recently shifted from helping to build the infrastructure of developing countries to: Answer s:

purchasing food for the population building highways, schools, and hospitals developing new agricultural techniques

offering loans to help to relieve their debt burden expansion of local product lines for more exporting

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Question 10 0.5 out of 0.5 points

An argument in favour of protective tariffs is the "infant-industry argument," which states that: Answer s:

any industry dealing with products for infants should be protected infant-industries need government loans infant-industries should be protected by tariffs from established foreign competition infant-industries should be exempt from antitrust laws infant-industries should be able to form monopolies

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Question 11 0.5 out of 0.5 points

Which of the following is NOT listed in the text as a reason why more and more companies are doing business in the global marketplace? Answer s:

Companies enter the global marketplace to maintain their balance of trade. Companies enter the global marketplace in order to stay competitive with companies that are marketing the same product as they market. Companies enter the global marketplace to expand their market. Companies enter the global marketplace to acquire the resources they need to operate. Companies enter the global marketplace as a result of governments lowering their trade barriers.

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Question 12 0.5 out of 0.5 points

Singapore has granted a(n) _____ on the importation of beer and stout made in the Philippines. This means that beer and stout made in the Philippines can sell for less in Singapore than beer and stout made by New Zealand or the United States.

Answer s:

differential duty biased tariff nontariff preferential tariff customary duty

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Question 13 0 out of 0.5 points

The Caucasus Mountains along the northeastern border of Georgia (one of the former Soviet republics) makes it difficult for the nation to trade with other former Soviet republics that are to its north and east. The mountain range acts as a(n): Answer s:

natural embargo infrastructure deterrent marketing barrier natural blockage natural trade barrier

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Question 14 0.5 out of 0.5 points

Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track. This is a partial description of the nation's: Answer s:

oligopoly natural advantage infrastructure ethnocentrism cultural environment

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Question 15 0.5 out of 0.5 points

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of: Answer s:

free trade ethnocentricity dumping countertrading protectionism

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Question 16 0.5 out of 0.5 points

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n): Answer s:

direct foreign investment

limited partnership international corporation international cooperative cooperative cartel

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Question 17 0.5 out of 0.5 points

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO). Answer s:

Uruguay Round North American Free Trade Agreement Maastricht Treaty Mercosur International Monetary Fund

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Question 18

0.5 out of 0.5 points

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much their Spanish counterparts. This example of _____ shows how important it is for marketers to understand. Answer s:

local content laws cultural differences nationalistic standards expropriation laws trade regulations

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Question 19 0.5 out of 0.5 points

The least costly and least risky method for selling a product on the global market is: Answer s:

licensing contract manufacturing importing franchising exporting

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Question 20 0.5 out of 0.5 points

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called: Answer s:

comparative advantage

premium exchange protectionism specialization

free trade...