international business key terms review work through this review in preparation for the upcoming...
TRANSCRIPT
International Business
Key Terms Review
Work through this review in preparation for the upcoming
exam
Question #1
When is dumping of a good into a importers market acceptable?
When a company is selling off
seasonal items
When an exporting company wants to put someone else
out of business
WRONG
Go back to the question
Correct
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Question #2
Who is the largest recipient of subsidies?
United States car manufactures
United States Farmers
Correct
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Question #3
An organization that attempts to standardize and integrate operation worldwide in all functional areas is a …Multi-Domestic
CompanyGlobal Company
Correct
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Question #4
When did NAFTA first take effect
January 1, 2000
January 1, 1994
July 4, 1994
Correct
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Question #5
All forces surrounding and influencing the life and development of a firm are called …
Globally aware Environmental
Correct
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Question #6
What is the biggest cause of international blunders?
Self referencing criterion Foreign Sourcing
Correct
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Question #7
Who is the largest oil producing country not to be a member of OPEC?
Canada Russia
Brazil
Correct
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Question #8
Who was the author of the theory of Comparative Advantage?John Kenneth
Galbraith David Ricardo
Milton Friedman
Correct
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Question #9
With direct foreign investing, a company must invest at a __________ level to obtain significant __________ ___________?
minimal, investment control
sufficient, management control
Correct
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Question #10
When a country produces a product that it has a relative advantage in …
Comparative Advantage
Absolute Advantage
Correct
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Question #11
What is an example of a global company?
Ford Walmart
Correct
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Question #12
OPEC is a group of oil producing countries that work together to set the standard for world oil ________ and ________.
quality, supply prices, supplysupply,
transportation
Correct
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Question #13
OPEC Controls _____ % of the world’s oil supply?
35% 40% 45%
Correct
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Question #14
The number of units of a currency required to buy the same amounts of goods and services in the domestic market that one dollar would buy in the US is …
Income Index Parity
Purchasing Power Parity
Correct
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Question # 15
Adam Smith is credited with creating the theory of …
Absolute Advantage
Comparative Advantage
Correct
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Question #16
OPEC is made up of 9, Arab only nations?
True False
Correct
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Question #17
Taxes on imported goods for the purpose of raising their price to reduce competition for local producers or stimulate their local production are called …
Tariffs Quotas
Correct
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Question #18
The best judge of Purchasing Power Parity is …
Campbell Seavers Index
Income Ratio Index
Big Mac Index
Correct
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Question #19
Another name for a tariff as a …
Import tax Quota Duty
Correct
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Question #20
The price of one currency stated in terms of another currency is called …
Exchange Rate
Exchange Ratio
Correct
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Question #21
All maquiladora factories have to be within 25 miles of the Unites States border?
FalseTrue
Correct
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Question #22
The goal of a company that practices predatory dumping is to …
Work with overseas
firms
Force domestic producers out of
business
Allow their products to cost more
Correct
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Question #23
Which of the following is not an internal environmental factor?
Capital Physical
Raw Materials
People
Correct
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Question #24
The theory of Absolute Advantage was created by …
Milton Friedman
Adam SmithDavid
Ricardo
Correct
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Question #25
Coke-cola India is an example of a …
Multi-domestic
Global International
Correct
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Question #26
A multinational organization designed to deal with rules of trade between nations
IMF World Bank WTO
Correct
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Question #27
An agreement by a small group of nations to establish free trade among themselves while maintaining trade restrictions with all other nations.
Non-binding trade agreement
Preferential trading arrangement
Correct
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Question #28
Internal Environmental Factors are NOT controllable by a company?
True False
Correct
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Question #29
The amount paid on products brought back into the US from a maquiladora is called …
Quota Value Added
Duty
Correct
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Question #30
The Heckscher-Ohlin theory is directly related to
Factors of Production
Exchange Rates
Factor Endowment
Correct
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Question #31
Legal, political, and labor are only a few of the _______ environmental factors?
Internal External
Correct
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Question #32
Who is the largest group of people that benefit from subsidies?
US Farmers US Cotton Growers
Brazilian Farmers
Correct
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Question #33
Once a product is made at a maquiladora, it can be sold in Mexico?
True False
Correct
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Question #34
Mexico’s main focus is to keep 1st generation work activity in the country?
True False
Correct
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Question #35
Mexico’s shift away from 1st generation work is because of this country?
ChinaBangladeshUnited State
Correct
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Question #36
Financial contribution, provided directly or indirectly by a government, which confers a benefit; include grants, preferential tax treatment, and government assumption of normal business expenses
Quotas Subsidies
Correct
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Question #37
The main goal of subsidies is to …
Drive domestic producers out of
the market
Increase quotas for imported
goods
Helps to exports or protect imports
Correct
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Question #38
The overseas procurement of raw materials, components, and products
Foreign Investment
Foreign Sourcing
Correct
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Question #39
Factor Endowment is a theory that countries export products requiring large amounts of their _____ production factors and import products requiring large amounts of their _____ production factors
scarce, abundant
abundant, scarce
Correct
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Question #40
Trade restrictions apply only to specific producers and anti-dumping restrictions apply to an entire country’s export firms
True False
Correct
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Question #41
The organization that acts as the world trade referee is the …
World BankUS
Commerce Dept.
WTO
Correct
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Question #42
Which is NOT a responsibility of the International Monetary Fund?
orderly correction of balance of payments
problems
Act as a guarantee organization military
loans
balanced expansion of world trade
stability of exchange rates
Correct
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Question #43
Voluntary export restraints are closely associated with …
quotasOrderly Market Arrangements
Subsidies
Correct
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Question #44
NAFTA is a trade agreement between the following …
United States & Mexico
United States & Canada
Mexico & Canada
United States, Canada, Mexico
Correct
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Question #45
An import duty levied as a percentage of the invoice value of imported good
Ad hoc duty Ad valorem duty
Correct
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Question #46
The gain enjoyed by a country because it can produce a product at a lower cost than other countries
Comparative Advantage
Absolute Advantage
Correct
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Question #47
Comparative Advantage allows a country to …
Produce what it can
Produce what it is good at
Correct
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Question #48
With an orderly market agreement, the restriction on international competition is agreed to by the ______?
Importing nation
Exporting nation
Correct
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Question #49
A fixed total amount of a product that can enter a market, regardless of where the product comes from is a …Global Subsidy Global Quota
Absolute Quota
Correct
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Question #50
Which of the following was a founding member of OPEC ?
Libya Venezuela
Russia Angola
Correct
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Question #51
The IMF will loan money to …
AnyoneIndividual companies
Governments
Correct
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Question #52
Adam Smith felt that _______ should be the main reason why countries trade
Government forces
Market forces
Correct
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Question #53
When countries agree to a VER, the main goal is to _______ national markets for local producers
preserve open up
Correct
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Question #54
For a quota to be in effect, it has to have a ________?
Open Ended Period
Specific Period
Correct
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Question #55
A quota that allows an importing nation to assign quantities to specific countries is called …
Absolute Quota Allocated Quota
Correct
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Question #56
An absolute quota allows for once a specified amount of a product has been imported, further importations are allowed in on a pro-rated basis?
True False
Correct
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Question #57
A trade situation that creates a win-win trade scenario is called …
Absolute Advantage
Comparative Advantage
Correct
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Question #58
An ad valorem duty that is a fixed sum of money for a physical unit is a
Specific Duty Compound Duty
Correct
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Question #59
Which company is the largest user of maquiladora factories is …
Wal-MartDelphi
General Motors
Correct
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Congratulations!!!!
You have completed the short answer section of the Key Terms Review.
I’m done, and don’t need to do any more
I will take a look at the
essay questions
International Business
Hope you have ESP and can lie effectively on the essay
questions.
I’m doneMaybe I should
look at the essay questions
Good Luck with the Test
Potential Essay Questions #1
Explain the maquiladora factory process in detail (you will need to draw a map, and mention a minimum of nine different “concepts”)
Next Essay Question
Potential Essay Questions #2
Explain what “dumping” is. When would it be acceptable? (at least seven different points to note)
Next Essay Question
Potential Essay Questions #3
There will be a five point question about the article from class about “competing in the global marketplace” (i.e. globalization)
Next Slide
Potential Essay Questions #4
How does OPEC have so much power in the global economy? (at least five points)
Next Slide
International Business Class
Make sure that you write down any questions that you have, either about the slide review, essay questions, or about your notes.
Next Slide
Test Statistics Twenty matching questions
Thirty One fill in the blank (no word bank)
Four Essay Questions
Five Bonus Questions
Next Slide
Good Luck on your test
May the force be with you (don’t
for get to study)