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WorksheetsMPP International Trade MCQ
Total questions: 53
Worksheet time: 2hrs 41mins
The association of 12 member nations of southeast Asia to promote economic growth, free trade and economic collaboration between member nations is called (a) .
A tax on imports
tariff
import tax
supply
embargo
Rules used to try to limit trade with other countries
embargo
tariff
trade barriers
quota
Which of these country is NOT a member of ASEAN?
Cambodia
China
Laos
Brunei
What is globalisation?
The process by which the world is becoming increasingly interconnected.
The process by which the world is becoming less interconnected.
The process by which the world is becoming more divided.
Which factor might attract a multinational corporation to a country?
Good tourist attractions.
Cheap raw materials.
High average monthly wage.
One negative consequence of globalisation for less-developed countries is (a)
A disadvantage of globalisation for manufacturers in the UK would include which one of the following
Access to wider markets
Difficult to find workers
Low-cost competition from overseas firms
The spread of technology could cause local unemployment
A large company such as McDonalds that has operations in more than one country.
Domestic Corporation
Multinational Corporation
Foreign Corporation
State Corporation
Some negatives of globalization include (a)
A country will become an exporter of a good if
there are enough producers of that good
the world market price is above the domestic price
the government imposes export quotas
the world market price is below the domestic price
In 2016, the United States limited the number of Japanese cars imported to 2 million per year. This is an example of a/an ___________________
Embargo
Tariff
Standard
Quota
What are BENEFITS of free trade for CONSUMERS? There are TWO.
Lower price for consumers - increased competition and greater efficiency leads to lower prices
Economies of scale - firms can expand and experience decreasing average costs of production
Greater choice for consumers - countries can import a larger variety of goods and services, possibly higher quality
Profits competed away - with the rise of competition domestic firms abnormal profits may be competed away
What is the relationship between culture and communication?
Culture is unrelated to communication
Culture involves interacting and communicating with other people and the world around them
Culture is solely about traditional practices
Culture is only about personal feelings
In high-context cultures, what is valued in relationship building?
Individual achievement
Trust and group harmony
Direct communication
Independence
What is important in communication within low-context cultures?
Social status
Clarity and brevity
Non-verbal cues
Trust and harmony
Which dimension in Hofstede's model deals with the avoidance of uncertainty?
Masculinity
Individualism
Uncertainty avoidance
Power distance
In Hofstede's dimensions, which one focuses on traditional gender roles?
Masculinity
Individualism
Power distance
Uncertainty avoidance
What does "Individualism" contrast with in cultural dimensions?
Masculinity
Collectivism
Power distance
Long-term orientation
What does this symbol mean?
means your trademark has been registered
means your trademark has not been registered
means your copyright has been registered
means your copyright has a creative commons license
What does the term "Intellectual property" mean?
Anything owned by a scientist or professor
Creations of the mind
Media products produced by a specific company
Media products advertised on TV
Brand names, slogans, and logos for a product are examples of __________________________.
Servicemark
Trademark
Copyright
Patent
Choose the image below that represents something most likely protected by copyright:
Imagine a sports team sets up a company to sell its own range of clothes. What type of intellectual property can the team use to show that the clothes are made by them?
Copyright
Trademarks
Geographical Indications
Patents
Can I use a picture from my favourite show and print them on a shirt?
YES, it is all fine.
NO, it will be copyright infringement.
Match the following vocab terms
free trade
unrestricted trade
protectionism
happens when trade barriers are put up
trade barrier
anything that restricts trade
tariffs
import taxes
What is a common characteristic of low-context cultures in communication?
Reliance on non-verbal cues
Indirect communication style
Emphasis on explicit verbal messages
Focus on group harmony
Why might a country choose to subsidize its local industries?
To increase the cost of local goods
To reduce government spending
To discourage foreign investment
To make local products more competitive internationally
"Going global, thinking local." Explain what this phrase means and discuss the potential benefits and conflicts for a company in following this logic in under 200 words
Tariff
A tax placed on an imported good
Trade Off
when one thing is exchanged for the use of another
Comparative Advantage
A country’s ability to produce a good at a lower cost than another country
Gross domestic product (GDP)
the value of all final goods and services sold in a country
Export
goods produced in one nation and sold to another nation
For foreign direct investment (FDI) to occur, a firm should primarily:
conduct cross-border bartering with neighboring countries.
invest resources in business activities outside its home country.
export goods or services to consumers in another country.
. import goods or services from producers in another country.
An example of foreign direct investment (FDI) would be which of the following?
LIST 3 reasons a business may expand its international markets in under 1000 characters
What is a potential benefit of foreign direct investment (FDI) for a host country?
Higher trade barriers
Access to new technologies
Decreased foreign relations
Increased local unemployment
Leo, a toy manufacturer, wants to expand his business internationally. What is licensing in the context of international market entry?
Establishing a new company in a foreign country
Allowing a foreign company to produce and sell your product in exchange for a fee or royalty
Merging with a foreign company
Selling products directly to consumers in another country
What is a joint venture?
A solo business operation in a foreign market
A partnership between a domestic and a foreign company to share resources and risks
A method of exporting goods
A type of licensing agreement
Which of the following is an advantage of exporting as a method of entering international markets?
High transportation costs
Low risk and investment
Complete control over foreign operations
High tariffs and trade barriers
What is a disadvantage of licensing as a method of entering international markets?
High level of control over the licensee
Risk of creating a future competitor
High initial investment
Limited market access
What is the concept of monochronic time?
Preference for doing one thing at a time because time is limited, precisely segmented and schedule driven
Preference for doing more than one thing at a time because time is flexible and multidimensional
Preference for doing one thing at a time because time is flexible and multidimensional
Preference for doing more than one thing at a time because time is limited, precisely segmented and schedule driven
What does culture encompass?
Only behaviors and material objects
Only social interactions
Beliefs, values, behaviors, and material objects
Only beliefs and values
GDP stands for
When people trade how do both sides benefit?
Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need
Countries can take advantage of each other making the international market more secure
Countries are able to learn the weaknesses of other countries and exploit those for natural resources
Countries are able to enter other countries with spies and foreign agents to undermine governments.
What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar?
European exports to the United States would become less expensive.
U.S. exports to Europe would become cheaper.
European imports from the United States would increase.
U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive.
President Trump has enacted tariffs against China and China has retaliated with tariffs of its own against the United States. This type of situation is known as...
a trade war
free trade
national security
Gross Domestic Product (GDP)
One cost of trade barriers is that tariffs increases the __________________ of imported goods.
products
prices
sales
services
