QUESTION Which option allows a U.S. company to establish a new enterprise in a foreign country while limiting some of the risk? A) offshoring B) joint venture C) foreign subsidiary D) foreign licensing E) exporting ANSWER Answer: B Explanation: B) By forming an alliance with a local company or partner, both parties share in […]
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 of the following is NOT a result of globalization? A) development of huge international firms B) development of e-commerce C) segmentation of national markets D) rise of small, Internet-enabled companies E) emergence of the global workplace ANSWER Answer: C Explanation: C) Globalization has led not to segmentation but to consolidation of national […]
QUESTION A country can have a wealth of natural resources, yet still need to engage in trade with other countries. What is the most common reason for this? A) lack of technology B) unskilled labor C) lack of self-sufficiency D) low domestic demand E) countertrading ANSWER Answer: C Explanation: C) No country is able […]
QUESTION Modern Metals Inc. in Argentina sells raw materials to White Widgets Co. in Germany, which manufactures gears and sells them to Big Bad Bikes in Michigan, which sells bikes throughout the United States. Which of the following correctly lists the exporter(s)? A) Modern Metals only B) Modern Metals and Big Bad Bikes C) White […]
QUESTION Which of the following is the BEST example of the United States exporting American culture? A) Oscar Mayer selling hot dogs in France B) Levi’s selling jeans in Peru C) Paramount selling movie tickets in Russia D) Apple selling MacBooks in Hungary E) KFC selling hot wings in South Africa ANSWER Answer: C […]
QUESTION The global economy has many potential negative impacts on the United States. Which of the following does NOT describe a negative impact? A) increased global interest in U.S. exports B) loss of manufacturing jobs in the Midwest C) wage stagnation for American workers D) domestic impacts from economic problems in other countries E) quality […]
QUESTION In Chicago, Malena and her staff prepare prune babkas, poppy seed breads, and other baked goods using the finest ingredients obtained from Poland. Since 1998, the treats have been sold to customers throughout the Midwest, primarily through Internet orders. Which term best describes this operation? A) multinational corporation B) importer C) exporter D) startup […]
QUESTION Parker has become successful selling custom snowboards. The market started in Vermont, then expanded throughout the Northeast. After doing some research, he learned that he could sell an unlimited number of snowboards throughout Canada with no economic restrictions. What is Parker benefitting from? A) e-commerce B) outsourcing C) importing D) free trade E) new […]
QUESTION Which does the United States mainly export? A) services B) consumer goods C) capital goods D) agricultural products E) industrial supplies ANSWER Answer: C Explanation: C) Some 49 percent of what the United States exports is capital goods.
