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 Which method for entering foreign markets has a strong connection to labor resources? A) importing/exporting B) franchising C) offshoring D) subsidiaries E) joint ventures ANSWER Answer: C Explanation: C) Much labor is outsourced as companies take advantage of lower wages in foreign countries.
QUESTION Which method to participate in foreign markets has experienced growth especially as a result of technology? A) importing/exporting B) franchising C) strategic alliances D) offshoring E) subsidiaries ANSWER Answer: D Explanation: D) While technologies support growth in all areas of business, new telecommunications technologies have facilitated the use of foreign call centers, as […]
QUESTION What has played the most significant role in enabling small companies to participate in the global economy? A) availability of venture capital B) easing of export regulations C) mergers and acquisitions D) the Internet and World Wide Web E) offshoring labor ANSWER Answer: D Explanation: D) The Internet facilitates rapid communication around the […]
QUESTION Which of the following terms best reflects foreign subsidiaries? A) fees B) control C) shipping D) shared risk E) resources ANSWER Answer: B Explanation: B) A company maintains full control over virtually all aspects of a foreign subsidiary—but also assumes all the risk.
QUESTION What do balance of trade and balance of payments provide insights on? A) a country’s competitiveness B) a country’s economic performance C) a country’s import/export performance D) a company’s foreign investments E) a country’s budget deficit or surplus ANSWER Answer: C Explanation: C) These figures help a country determine the level of success […]
QUESTION Judy is in U.S. headquarters and needs to communicate with a foreign partner in Hungary about some important developments. Which technology will help to optimize each person’s comprehension of the information? A) fax B) e-mail C) text chat D) telephone E) webcam chat ANSWER Answer: E Explanation: E) A significant part of communication […]
QUESTION Which of the following describes a debtor nation? A) Value of the country’s exports exceeds the value of its imports. B) Value of the country’s imports exceeds the value of its exports. C) Value of the country’s imports equals the value of its exports. D) More money flows into the country from imports, foreign […]
QUESTION Serge owns CloudCar, a company that manufactures the world’s first flying sedan. Business has taken off, and every U.S. driver has one. It’s time to take CloudCar global. The company has substantial capital, and the board wants to maintain strict control over company assets. Which approach should they take? A) exporting B) licensing C) […]
