QUESTION Marco’s first international experience was opening an assembly plant outside Johannesburg. He planned two shifts a day to help alleviate high youth unemployment, but he learned the bus system doesn’t run past 6:00 pm. What condition is impacting his business plans? A) culture B) time orientation C) resources D) infrastructure E) currency ANSWER […]
QUESTION Argentina, Brazil, Paraguay, and Uruguay benefit from reduced trade tariffs among themselves. Which of the following terms does NOT relate to this arrangement? A) Mercosur B) common market C) trading bloc D) joint venture E) economic community ANSWER Answer: D Explanation: D) This term is associated with distinct businesses partnering for mutual benefit.
QUESTION Which of the following is NOT considered a political or legal condition affecting international business? A) devaluation B) totalitarian systems C) civil disorder D) corruption E) expropriation ANSWER Answer: A Explanation: A) Devaluation of currency is an economic condition affecting international trade.
QUESTION What region of the world has the highest level of bribery in business? A) South America B) Africa C) Middle East D) Asia E) Eastern Europe ANSWER Answer: B Explanation: B) In a 2009 survey, seven African countries were mentioned by at least 23 percent of businesspeople who reported paying a bribe. In […]
QUESTION Expropriation would have the greatest impact on a U.S. businessperson involved in what type of foreign business model? A) importing/exporting B) licensing C) joint venture D) foreign subsidiary E) outsourcing ANSWER Answer: D Explanation: D) A subsidiary has the most exposure to seizure of a company’s assets under expropriation.
QUESTION Determining the development status of a country is based on its level of economic growth, condition of its infrastructure, and availability of resources. Which of the following less-developed countries has high economic growth but insufficient infrastructure and resources? A) Somalia B) France C) India D) Haiti E) Uganda ANSWER Answer: C Explanation: C) […]
QUESTION Country X has devalued its currency by 8 percent. Which U.S. business structure engaged with Country X will realize the most benefit from this situation? A) franchiser B) licenser C) subsidiary D) importer E) joint venture ANSWER Answer: D Explanation: D) Prices for goods produced by Country X will decline relative to others […]
QUESTION Joan is under pressure from U.S. headquarters to seal a lucrative contract with a company in Russia. Negotiations have gone well, and Joan’s knowledge of Russian culture has helped. During a dinner meeting, a Russian executive solicits a bribe. What is the highest risk Joan faces in her response to this situation? A) violating […]
QUESTION Jabez is a successful U.S. businessman who recently purchased a small coffee plantation in a totalitarian country. He knows it’s a gamble, but the quality of the coffee beans is almost unmatched. Which of the following poses the largest potential risk for Jabez? A) devaluation B) corruption C) expropriation D) time orientation E) infrastructure […]
QUESTION Which of the following is NOT a method that countries use to limit the import of goods and services? A) import quotas B) revenue tariffs C) protective tariffs D) floating exchange rates E) embargoes ANSWER Answer: D Explanation: D) Floating exchange rates affect the values of currencies and are driven by supply and […]
