Question 1 Companies that do business with customers in developing nations that lack access to hard currencies are likely to make extensive use of:
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Selected Answer: countertrading.
Correct Answer: countertrading. Question 2 A country has a comparative advantage in the production of a good if it can produce that good _____ than other nations.
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Selected Answer: at a lower opportunity cost
Correct Answer: at a lower opportunity cost Question 3 Foreign _____ involves a domestic firm granting a foreign firm the rights to produce, promote, and use its trademark/patents in a defined geographical area.
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Selected Answer: direct investment
Correct Answer: licensing Question 4 Relative to other nations, the United States appears to have an advantage in the amount of:
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Selected Answer: capital.
Correct Answer: capital. Question 5 A(n) _____ is an agreement among two or more two companies to join forces to pursue specific opportunities without actually merging their operations.
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Selected Answer: joint venture
Correct Answer: joint venture Question 6 The three countries participating in the North American Free Trade Agreement (NAFTA) are _____
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Selected Answer: Canada, Mexico, and the United States.
Correct Answer: Canada, Mexico, and the United States. Question 7 The _____ influences the global economy by providing technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education.
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Selected Answer: World Bank
Correct Answer: World Bank Question 8 Key infrastructure challenges to consider when entering a foreign market include:
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Selected Answer: transportation, communication, and energy.
Correct Answer: transportation, communication, and energy. Question 9 _____ is the most basic level of international market development and involves shipping domestically produced products overseas.
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Selected Answer: Exporting
Correct Answer: Exporting Question 10 The European Union created a common currency which twelve member states have since adopted. This common currency is referred to as the:
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Selected Answer: euro.
Correct Answer: euro. Question 11 A social audit is a systematic evaluation of:
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Selected Answer: evaluation of how well a firm is meeting all of its corporate objectives.
Correct Answer: how well a firm is meeting its ethical standards and social responsibility goals. Question 12 The process whereby a company promotes environmentally friendly products as a benefit to its customers is known as
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Selected Answer: green marketing.
Correct Answer: green marketing. Question 13 Research indicates that the organizational culture
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Selected Answer: has significant influence on the individual employee’s ethical behavior.
Correct Answer: has significant influence on the individual employee’s ethical behavior. Question 14 An example of a legal but unethical behavior is_____
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Selected Answer: overseeing questionable work-related activities.
Correct Answer: paying non-living wages to workers in underdeveloped countries. Question 15 _____ is visible when companies contribute to the well-being of society.
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Selected Answer: Social responsibility
Correct Answer: Social responsibility Question 16 One way Kraft demonstrated its commitment to socially responsible policies was by
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Selected Answer: increasing the vitamins and minerals it includes in its packaged foods without increasing food prices.
Correct Answer: pledging to stop advertising unhealthy foods to children. Question 17 A nation’s legal system:
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Selected Answer: provides a starting point for examining ethical standards.
Correct Answer: provides a starting point for examining ethical standards. Question 18 In the business world, social responsibility refers to:
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Selected Answer: the obligation of a business organization to contribute to society.
Correct Answer: the obligation of a business organization to contribute to society. Question 19 A unifying written document that articulates a firm’s ethical priorities is described as the company’s
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Selected Answer: compliance manual.
Correct Answer: code of ethics. Question 20 _____ is the use of marketing partnerships between businesses and nonprofit organizations. The partnerships are designed to spike sales for the company and raise money for the nonprofit organization.
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Selected Answer: Cause-related marketing
Correct Answer: Cause-related marketing