Grade Details

1.

Question: An unfavorable balance of trade occurs when the value of: Your imports equals the value of exports. Answer:
imports exceeds the value of exports. cash inflows are equal to the value of cash outflows. exports exceed the value of imports.

CORRECT

Points 1 of 1 Received: 2. Question: The difference between money coming into a country (from exports) and money leaving the
country (for imports) plus money flows from other factors such as tourism, foreign aid, and military expenditures is referred to as the:

Your Answer:

balance of payments. balance of trade. balance of money flows. exchange rate.

CORRECT

Points 1 of 1 Received: 3. Question: Country A is an extremely efficient producer of tin. However, its climate and terrain makes it
difficult to produce corn. According to the theory of comparative advantage, Country A should:

Your Answer:

produce both tin and corn in order to remain self-sufficient. watch the global market to see which product is bringing the highest price. import the resources needed to produce corn. concentrate its production on tin and buy corn from an efficient producer.

CORRECT

Points 1 of 1 Received: 4. Question: An important principle for firms desiring to export is: sell to countries with a higher standard of living than your country Your has. Answer:
realize that American methods are always best. find a need in the global market and fill it. if your product sells well in the U.S. it will sell well globally.

CORRECT

Points 1 of 1 Received: 5. Question: The value of goods imported into France exceeds the value of French exports.
This indicates that France:

Your

will experience an exchange rate decrease.

Answer:

utilizes high tariffs. will incur a budget deficit. has a balance of trade deficit.

CORRECT

Points 1 of 1 Received: 6. Question: Foreign investment in the U.S. is seen as a sign of ________ in the U.S. economy. Your inflation Answer:
a favorable balance of trade weakness strength

CORRECT

Points 1 of 1 Received: 7. Question: Using contract manufacturing as a strategy to reach global markets offers firms the advantage of: Your significant start-up costs. Answer: reduced risks. CORRECT
increased volatility. currency stability.

Points 1 of 1 Received: 8. Question: Hennessy Hardware, a U.S. retailer, buys much of its inventory from Asian countries. Hennessy
Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports.

Your Answer:

rose fell remained constant floated unpredictably

CORRECT

Points 1 of 1 Received: 9. Question: The U.S. government has announced a 5 million-pound annual limit on beef imported from
Argentina. This type of trade restriction is called a(n):

Your Answer:

embargo. revenue tariff. import quota. export cap.

CORRECT

Points 1 of 1 Received:

10.

Question: The strength of U.S. economy helps explain why: Your foreign direct investment in the United States has grown steadily. Answer:
the United States enjoys a favorable balance of trade. China and Japan formed a common market to become more competitive. the U.S. is able to avoid becoming a debtor nation.

CORRECT

Points 1 of 1 Received: 11. Question: Pepsi Cola 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 Cola in South Africa. Pepsi will receive a royalty on each case of soda sold. This is an example of:

Your Answer:

licensing. a joint venture. a foreign subsidiary. foreign direct investment.

CORRECT

Points 1 of 1 Received: 12. Question: Adam's Apple Corporation ships all of the apples from its orchards in Washington to a single
buyer in Japan. The firm's entire profits are derived from this international transaction. Adam's Apple Corporation:

Your Answer:

is an example of a multinational corporation. is not a multinational corporation. is contributing to the U.S. balance of trade deficit. will benefit greatly from the establishment of NAFTA.

CORRECT

Points 1 of 1 Received: 13. Question: Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other
currencies are the result of:

Your Answer:

negotiated rate adjustments between the U.S. government and the World Trade Organization. decisions by the Federal Reserve Board of Governors in order to implement monetary policy. fluctuations in the world price of gold. changes in the supply of and/or demand for dollars in the global currency market.

CORRECT

Points 1 of 1 Received: 14. Question: A major concern voiced by U.S. critics of the North American Free Trade Agreement (NAFTA)
is that it would result in:

Your Answer:

higher prices for consumer goods.

loss of jobs in the U.S. economy. national security problems. increased illegal immigration from Mexico.

CORRECT

Points 1 of 1 Received: 15. Question: Which of the following best describes the impact of the Internet on global market transactions? Your The use of email has minimized the risk of expropriation Answer: of a firm's assets by a foreign government. The Internet allows new competitors entering a foreign CORRECT market to bypass the traditional distribution channels. Legal and regulatory forces are ignored because Internet transactions are difficult to police. Internet chat rooms allow for an increased use of bartering as a method of resolving international payment problems. Points 1 of 1 Received: Grade Details
1.

Question: The majority of CEOs blame unethical employee conduct on: Your the breakdown of traditional religious institutions. Answer:

a failure of leadership to establish ethical standards. the increase in lawsuits used to avoid personal responsibility. the nation's business schools that tolerate unethical behavior in students.

CORRECT

Points 1 of 1 Received: 2. Question: The purpose of a(n) ________ is to evaluate an organization's progress towards implementing
programs to achieve social responsibility.

Your Answer:

accountability review social audit federal disclosure statement. annual report.

CORRECT

Points 1 of 1 Received: 3. Question: When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins
with:

Your Answer:

schools. religious institutions.

law enforcement officers. each of us.

CORRECT

Points 1 of 1 Received: 4. Question: Businesses can best meet their responsibility to society by: Your creating markets for domestic products. Answer:

shifting the blame for product liability cases onto the legal system. supporting their preferred government officials. creating wealth for their stockholders.

CORRECT

Points 1 of 1 Received: 5. Question: Ethical problems and issues of social responsibility are: Your unique to firms involved in global trade. Answer: unique to the United States. INCORRECT
not unique to the United States. less important now than in the past.

CORRECT ANSWER

Points 0 of 1 Received: 6. Question: Ethical behavior covers a ________ range of conduct than does legal behavior. Your wider CORRECT Answer:
more limited smaller less demanding

Points 1 of 1 Received: 7. Question: Business relationships often present ethical dilemmas that are ________. Your not easily resolved. CORRECT ANSWER Answer: easily resolved by following the relevant laws. INCORRECT
best resolved by creating a lose-lose situation. irrelevant and therefore require no action.

Points 0 of 1 Received: 8. Question: Top management at Lancer Distributing is convinced that they have a social responsibility to their
community. They believe that they can have the greatest impact in this area through cash contributions to nonprofit organizations. This is an example of corporate:

Your Answer:

guilt payments. philanthropy. structure and strategy. short run profit maximization.

CORRECT

Points 1 of 1 Received: 9. Question: Environmental quality is considered to be a public good. This means that: Your ultimately it is the public that pays for environmental clean up. Answer: businesses have a responsibility to minimize their environmental
pollution. everyone enjoys a cleaner environment regardless of who pays for it. society places a higher value on private goods and services.

CORRECT

Points 1 of 1 Received: 10. Question: Issues of social responsibility and ethical behavior are: Your the result of greed found in capitalist countries. Answer:
a concern only of business professors. found in many different countries.

INCORRECT

found primarily in countries with a low standard of living.

CORRECT ANSWER

Points 0 of 1 Received: 11. Question: A U.S. government official has indicated that for a generous contribution to his reelection fund,
he would ignore your firm's apparent violation of several anti-pollution laws. Which of the following "ethics check questions" would you consider first?

Your Answer:

Is it legal? Is it fair? How will it make me feel about myself? How much do you want?

CORRECT

Points 1 of 1 Received: 12. Question: Top leaders in government and business today are: Your held to higher ethical standards than in the past. Answer:
held to less strict moral standards than in the past. less interested in social responsibility than in the past. at odds with the general public in regard to ethical issues.

CORRECT

Points 1 of 1

13.

Received: Question: In an effort to help employees resist the pressure to make an unethical decision, the Johnston
Petroleum Company has communicated its code of ethics statement to suppliers, subcontractors, distributors, and customers. This approach is consistent with:

Your Answer:

an integrity-based ethics code. a compliance-based ethics code. a response to a government mandate. a personal responsibility commitment.

CORRECT

Points 1 of 1 Received: 14. Question: The most important factor causing businesses to vigorously enforce ethical standards is the: Your desire to eliminate employee turnover. Answer: fear of negative publicity. CORRECT
focus on criminal penalties. evasion of social audit measurements.

Points 1 of 1 Received: 15. Question: The vice president of human resources at Ato Enterprises feels strongly that workers need to realize the benefits of their hard work. This reveals the firm's responsibility to: Your Answer:
customers. investors. society. employees.

CORRECT

Points 1 of 1 Received: