International Business Quiz 1

A trade agreement between Canada, Mexico, and the US

• FANTA

• NAFTA

• WTO
• USCANMEX

Developing nations tend to trade what type of goods

• Low skill products
• High tech goods
• finished products
• High skill products

A global company can ___________ its experience to expand its global operations

• Contract

• Expand

• Leverage

• Minimize

Mercantilism is an economic philosophy advocating that countries should simultaneously encourage imports and discourage exports.

• True

• False

A situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.

• New trade

• Free trade

• International trade

Globalization refers to:

• Less investment but more trade

• A more integrated and interdependent world

• More Foreign Direct Investments

• All of the above

Which of the following is NOT a driver of globalization?

• The fragmentation of consumer tastes between countries.

• The competitive process.

• Multinational companies successfully persuading governments to lower trading barriers.

• The spread of affordable communication technology

Milka is using Disney characters on the packaging of its chocolate bars. Which statement is correct?

• This is a case of franchising

• Milka is the franchisee

• Disney is the licensor

• Disney is the licensee

One of the main tasks of the World Trade Organization is to handle trade disputes between its member countries

• True

• False

Which of the following constitutes Foreign Direct Investment?

• A speculator trying to make a profit by buying company shares on a foreign stock exchange.

• A UK energy company buying territory abroad where it expects to find oil reserves

• A tourist purchasing foreign currency to spend on a holiday abroad.

• A company signing an agreement with a wholesaler to distribute its products in foreign markets