Which factor has aided the most in creating a global business environment?
cultural change
technology
government
exchange rate
A small-business owner whose business is a sole proprietorship is planning to “go global.” What method for going global would be best to recommend to the small-business owner?
Start by hiring an export management company.
Start by building facilities in the countries of interest.
Start by merging with a foreign business that can sell your products.
Start by renting facilities in the countries of interest and hiring foreign employees.
Which affects the business environment because it provides the most options for consumers?
command economy
international sanctions (penalty)
monopoly
global competition
Which is a factor that affects the global business environment?
industry competition
staff organization
information management
conflict negotiation
One reason that has caused the government's role in business to expand is that:
competition in the marketplace has increased.
products have become very technical.
costs of production have continued to increase.
people's attitudes have changed.
A U.S. company would decide to offer its products in other countries as a reason to:
subsidize developing countries.
sell obsolete, outdated products.
expand to new, untapped markets.
provide jobs to people in other countries.
Businesses that successfully adapt to current market situations often realize that:
cutting costs is important.
more financing is necessary.
diversification is the key.
change is an opportunity.
Which situation would most likely indicate the need to adapt to changes in the business environment?
The supply of materials used in manufacturing a product has decreased.
The number of the business's competitors has decreased.
The demand for the product is stable.
The business has experienced little employee turnover during the past year.
Which of the following is a disadvantage of globalization?
Consumers have access to foreign products
International development
Unfair working conditions
Cheaper resources
When two or more companies come together for a brief period of time to complete one business project this is called?
Joint venture
Franchising
Licensing
Partnership
Verizon sells the OtterBox which is a case that protects iPhones from damage when mishandled. The fact that Verizon sells another company's product that compliments their services is an example of:
Direct exporting
Greenfield investments
Turnkey projects
Piggybacking
Alaska produces more salmon cheaper than any other state that exports salmon because of its location and climate. This is an example of what type of ADVANTAGE?
Absolute
Comparative
Dual
State
United States has become globally known for its production of wheat more resourcefully than China. It can produce the product with less human resources. This is an example of what type of ADVANTAGE?
Service
Iran raised the prices of imported oil in order to increase the trade of their own oil in their nation. This is an example of which international trade barrier?
Quota
Tariff
Embargo
Ban
Which statement is true about balance of payment?
Balance of payment is favorable when a COMPANY pays more money out of it than it receives in it.
Balance of payment is favorable when a COMPANY receives more money into it than it pays out.
Balance of payment is favorable when a COUNTRY pays more money out of it than it receives in it.
Balance of payment is favorable when a COUNTRY receives more money into it than it pays out.
Which type of marketing structure has a lot of control over prices, has only a few firms (2-3), offers similar products, and is extremely difficult to create?
Monopoly
Oligopoly
Perfect Competition
Monopolistic Competition
Which type of market structure has some control over prices, has many firms (100s), are similar, demand is perfectly elastic, and not hard to open?
Perfect competition
Monopolistic competition
Laos has limited infrastructure that will hinder international businesses to conduct transactions in it. This country depends heavily on the agricultural industry. Which main factor of the international business environment is this information about this country classified?
Geography
Economic Development
Political and Legal
Cultural
If a country is in a civil war and its government changes abruptly, this is an example of which factor that influences international currency exchange?
Political legal concerns
Economic development
Which is an internal factor that might influence a business owner's decision making?
The economy
Laws
Customer base
SWOT analysis
The international trade organization that protects and promotes public health by regulating and supervising of food safety is called?
World Trade Organization
International Monetary Fund
Federal Trade Commission
Food and Drug Administration (FDA)
A vendor is extending credit to the Jones Company in return for the Jones Company's agreement to use the vendor as the sole source of its supplies. What federal act is the vendor and the Jones Company violating?
Celler-Kefauver Act
Clayton Act
Sherman Act
Robinson-Patman Act
An organization assisted two countries on settling a trade disagreement on the amount of bananas to be traded. This action is an example of assistance provided by which international trade organization?
World Bank
Kenya’s Prime Minister meets with other government officials from Uganda, Ethiopia, and Somalia to agree to sell products and services tax free throughout their region in Africa. This an example of which international trade factor?
Free Trade Zone
WTO
Joint Venture
Common market
Business ethics involve considering issues about what is:
Legal and illegal
Right and wrong
Positive and negative
Safe and unsafe
