QUESTION DynaTech’s chief operating officer sees recent worldwide technological advances as playing a key role in helping the company to globalize. Which of the following, if true, most strengthens his position? A) Increasing free trade has helped many more companies do business internationally than have done so before. B) Internet communications have helped businesses coordinate […]
QUESTION The CEO wants to fund a large budget for a new overseas marketing campaign. The marketing director, however, argues that Greenmax will not need a significant additional marketing outlay to distribute its product overseas. Which of the following, if true, best supports the marketing director’s position? A) The currency exchange rate between the U.S. […]
QUESTION Rajesh owns a company based in Kentucky that sells solar-powered cooling systems. Although business is marginal in other warm-weather countries of the world due to various tariffs, the company has brisk sales with Mexico. What is Rajesh’s business benefitting from? A) dumping B) the NAFTA C) the Mercosur D) embargoes E) APEC ANSWER […]
QUESTION Aside from the dynamics of supply and demand among currency traders, what is the key driver of currency exchange rates? What will be an ideal response? ANSWER Answer: Changing economic conditions among countries drive the currency exchange rate. Explanation: Because of changing economic conditions, the values of currencies fluctuate in relation to one […]
QUESTION Which of the following serves as a lender of last resort to assist countries experiencing unfavorable balance of payments? A) the World Bank B) the Mercosur C) the International Monetary Fund D) the World Trade Organization E) the Common Market ANSWER Answer: C Explanation: C) The IMF was established in 1945 to assist […]
QUESTION What is a trading bloc? What will be an ideal response? ANSWER Answer: A trading bloc is a group of nations within a geographical region that have agreed to remove trade barriers with each other. Explanation: A trading bloc is a group of nations within a geographical region that have agreed to remove […]
QUESTION In the 2010s, as the European Union developed solutions to a debt crisis in Greece, citizens of other EU countries resented providing financial assistance. They put some of the blame for the country’s debt on the work ethic of Greek citizens. Which condition affecting international dealings drives this attitude? A) legal systems B) culture […]
QUESTION What is the focus of the World Bank? What will be an ideal response? ANSWER Answer: The World Bank provides low-interest loans to developing nations for improving health, transportation, education, and telecommunications. Explanation: The World Bank’s low-interest loans help developing nations to improve health, transportation, education, and telecommunications. The World Bank is closely […]
QUESTION In the framework of international trade, what is “comparative advantage”? What will be an ideal response? ANSWER Answer: In comparative advantage, a country sells to other countries the products and services that it can produce most cheaply and efficiently. The country buys from other countries products that it does not produce most cheaply […]
QUESTION Which of the following, if true, most weakens the CEO’s argument? A) Exporting goods from a foreign country will incur significant costs. B) Most of the appliance parts Gizmo sells in the United States will also readily sell in foreign markets. C) International business ventures carry inherent risks that are not present in domestic […]
