POSSIBLE AFM 131 PAST TEST BANK? EXAM QUESTIONS AND
ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
A major concern voice by Canadians critics of NAFTA is that it would result in
Loss of jobs in the Canadian Economy
Many economists and business experts contend that ___ will likely be the growth
market of the future
Asia
One reason why Canada and the US trade so much is
Each country understands the culture and needs of another
The fee paid to a firm in a licensing agreement that gives another firm the right to
manufacture their product or use its trademark is called:
A royalty
An unfavorable balance of trade occurs when the value of
Imports exceeds the value of exports
A mexican firm has agreed to trade petroleum to an American importer in return
for Canadian made computer. This agreement is an example of
Counter-trading
Pepsi has entered into a long-term contract with a South African beverage
business. The contract calls for the South African firm to produce and market
Pepsi in South Africa. Pepsi will receive a royalty on each case of soda sold. This
is an example of
,Licensing
Japanese automobile producers sold more of their production overseas than they
sold in Japan. Their business strategy is:
Exporting
Companies such as McDonald's, Pizza hut, and KFC have entered the global
market by offering investors the opportunity to set up
Franchises
US firms that produce sophisticated military hardware are prohibited from
exporting that equipment to unfriendly governments, such as Iran. The complete
ban on exporting sensitive technology to specific countries is an example of a(n)
Embargo
____ for a country occurs when it has a monopoly on producing a product
Absolute Advantage
A(n)_____ refers to a complete ban of the imports or exports of certain products
from a specific country
Embargo
Differences in electrical power can present special problems for Canadian firms
when attempting to enter global markets. This represents the _____ forces that
impact global business.
Physical and environmental
If a Swiss chocolate firm purchases a Canadian ice cream manufacturer, the
Canadian ice cream manufacturer becomes a
Foreign Subsidiary
, Last year, the nation of Kwansai reported that it had a favourable balance of trade
even though it imported $11 billion worth of goods. This indicates that Kwansai
Exported more than $11 billion worth of goods
The US has stopped some Canadians goods from entering the country because it
said that the information on the labels was too small. This is an example of a(n)
Non-tarff barrier
The only deposits of a rare mineral known as shozet are found in the nation of
swanland. Since no other nation has deposits of shozet, Swanland has
a(n)_______ in the production of this mineral
Absolute advantage
All of the following are recognizzed as being potential hurdles to be overcome in
global trading, Except (Different languages, Different money systems, lack of
market opportunities, different cultures)
lack of market opportunities
Ford trades vehicles to Jamaica, which then trades to China in exchange for
computers. This is an example of
Counter-trading
The value of goods imported into France exceeds the value of french exports.
This indicates that France:
Has a balance of trade deficit
The difference between money coming into and leaving the country plus money
flows from factors such as tourism and foreign aid is referred to as the
Balance of payments
ANSWERS WITH COMPLETE SOLUTIONS GRADED A++
A major concern voice by Canadians critics of NAFTA is that it would result in
Loss of jobs in the Canadian Economy
Many economists and business experts contend that ___ will likely be the growth
market of the future
Asia
One reason why Canada and the US trade so much is
Each country understands the culture and needs of another
The fee paid to a firm in a licensing agreement that gives another firm the right to
manufacture their product or use its trademark is called:
A royalty
An unfavorable balance of trade occurs when the value of
Imports exceeds the value of exports
A mexican firm has agreed to trade petroleum to an American importer in return
for Canadian made computer. This agreement is an example of
Counter-trading
Pepsi has entered into a long-term contract with a South African beverage
business. The contract calls for the South African firm to produce and market
Pepsi in South Africa. Pepsi will receive a royalty on each case of soda sold. This
is an example of
,Licensing
Japanese automobile producers sold more of their production overseas than they
sold in Japan. Their business strategy is:
Exporting
Companies such as McDonald's, Pizza hut, and KFC have entered the global
market by offering investors the opportunity to set up
Franchises
US firms that produce sophisticated military hardware are prohibited from
exporting that equipment to unfriendly governments, such as Iran. The complete
ban on exporting sensitive technology to specific countries is an example of a(n)
Embargo
____ for a country occurs when it has a monopoly on producing a product
Absolute Advantage
A(n)_____ refers to a complete ban of the imports or exports of certain products
from a specific country
Embargo
Differences in electrical power can present special problems for Canadian firms
when attempting to enter global markets. This represents the _____ forces that
impact global business.
Physical and environmental
If a Swiss chocolate firm purchases a Canadian ice cream manufacturer, the
Canadian ice cream manufacturer becomes a
Foreign Subsidiary
, Last year, the nation of Kwansai reported that it had a favourable balance of trade
even though it imported $11 billion worth of goods. This indicates that Kwansai
Exported more than $11 billion worth of goods
The US has stopped some Canadians goods from entering the country because it
said that the information on the labels was too small. This is an example of a(n)
Non-tarff barrier
The only deposits of a rare mineral known as shozet are found in the nation of
swanland. Since no other nation has deposits of shozet, Swanland has
a(n)_______ in the production of this mineral
Absolute advantage
All of the following are recognizzed as being potential hurdles to be overcome in
global trading, Except (Different languages, Different money systems, lack of
market opportunities, different cultures)
lack of market opportunities
Ford trades vehicles to Jamaica, which then trades to China in exchange for
computers. This is an example of
Counter-trading
The value of goods imported into France exceeds the value of french exports.
This indicates that France:
Has a balance of trade deficit
The difference between money coming into and leaving the country plus money
flows from factors such as tourism and foreign aid is referred to as the
Balance of payments
