QUESTION What event marked the beginning of the global movement to remove all barriers to free trade? What will be an ideal response? ANSWER Answer: The signing of the General Agreement on Tariffs and Trade in 1947 helped to reduce worldwide tariffs and other barriers to free trade. Explanation: In 1947, 23 countries signed […]
QUESTION Tricore’s chief financial officer argues that some investment by Tricore in Zimbabwe may help the company in doing long-term business there. Which of the following, if true, strengthens her argument? A) Tricore has limited funds for international ventures. B) Tricore does not have any executives with experience in international business. C) Companies are most […]
QUESTION What is the most aggressive strategy a government can implement to affect international trade? What will be an ideal response? ANSWER Answer: Embargoes are the most aggressive strategy to impact trade because they are a complete ban on the import or export of a particular product. Explanation: Because they are a complete ban […]
QUESTION Tricore’s chief executive officer says that if opening its own business operations in Zimbabwe is too difficult because of bureaucracies, it might do better by contracting a local business to do its manufacturing. Which of the following, if true, weakens the case for doing so? A) Bureaucracies often favor local businesses over international ones. […]
QUESTION Gizmo’s chief operating officer urges caution in the expansion of the company into other countries, stating that conditions in some countries make doing business overseas inherently riskier than in the United States. Which of the following, if true, most weakens his argument? A) Marketing strategies that are successful in the United States are not […]
QUESTION Which of the following conclusions is best supported by the CEO’s statement? A) The higher the value of the Canadian dollar, the fewer Americans are likely to shop in Canada for lower prices. B) The lower the value of the Canadian dollar, the more Canadians are likely to shop in the United States for […]
QUESTION Gizmo’s marketing director argues that because the global economy is interconnected, if Gizmo continues to be profitable in the United States it should be able to invest that money to do well internationally. Which of the following, if true, most weakens her argument? A) Gizmo’s existing products can be used in other countries. B) […]
QUESTION The VP of human resources is skeptical of the plans to expand into Vietnam. PyraTex is committed to remaining a small company, and she argues that it doesn’t have the resources to be a multinational enterprise. Which of the following, if true, most weakens her argument? A) The company’s recent effort to expand its […]
QUESTION Zebra’s chief operating officer is concerned about the ramifications of this business move. She thinks that Zebra Networking will have to open production and R&D facilities in the countries in which the company does business. Which of the following, if true, strengthens her argument? A) Selling internationally requires an increase in sales staff. B) […]
QUESTION Which of the following, if true, most strengthens the CEO’s argument? A) International agencies have effectively standardized business practices worldwide. B) Expensive legal research is often required before U.S. companies can set up facilities in other countries. C) Investors have committed a significant amount of upfront capital for Gizmo to set up foreign operations. […]
