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 When a U.S. company joins with a foreign company to share the risks and rewards of starting a new enterprise in a foreign country, this is called a strategic alliance. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Another term for this relationship is joint venture.
QUESTION A foreign subsidiary is a company in a foreign country that is totally owned and controlled by the parent company. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Subsidiaries present the highest risk to companies wanting to enter a foreign market.
QUESTION Contract manufacturing always involves a company’s use of foreign resources. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: This practice describes using suppliers outside the company for resources—these suppliers may or may not be outside the country.
QUESTION Infrastructure is the physical facilities that form the basis for a country’s economic development. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Infrastructure such as roads and power lines help a country—and its economy—to function.
QUESTION Nonverbal communication is only responsible for about 10 percent of a message. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Nonverbal communication can account for as much as 60 percent of the content and meaning of a message.
QUESTION A tariff is a customs duty or tax on imports that functions as a trade barrier. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: Tariffs are a form of trade protectionism.
QUESTION Which of the following assumptions does Groh make? A) Inflation can outpace any interest rate. B) Given enough time, any stock will eventually go up in value. C) The riskier the investment, the more value it will have over a long period of time. D) The more stocks invested in, the higher their value […]
QUESTION Although bribes are an acceptable practice in many parts of the world, American businesspeople are prevented by law from participating in bribes in foreign countries. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The 1978 Foreign Corrupt Practices Act makes this activity illegal.
