Global Management

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Question 1
Free
Multiple Choice

Aldhurst Corp., a software manufacturing firm in Lochmount, a European country, bought Fairden Corp., a software manufacturing firm in Vertholt, an Asian country. This scenario is an example of _____ .

Choose correct answer/s
A

a strategic alliance

B

direct foreign investment

C

licensing

D

a joint venture

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Question 2
Free
Multiple Choice

Oldhust Corp., an electronics company in the country of Bigmount, bought Specden Corp., an electronics company in the country of Vertholt. This scenario is an example of _____ .

Choose correct answer/s
A

strategic alliance

B

direct foreign investment

C

direct export

D

joint venture

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Question 3
Free
Multiple Choice

PriemCrest, an oral care company in the country of Holtmont, bought an oral care company called SerenCrest in the country of Hofstadden. This scenario is an example of _____ .

Choose correct answer/s
A

strategic alliance

B

direct foreign investment

C

direct export

D

joint venture

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Question 4
Free
Multiple Choice

Lochmonden already has a company registered under the name of CreateOne. The Aldemeren company with the same brand name was not able to enter Lochmonden market. Hence, the Aldemeren CreateOne had to start a new company in the name of OneCreate to enter the market in Lochmonden. This scenario is an example of _____ .

Choose correct answer/s
A

strategic alliance

B

direct foreign investment

C

direct export

D

joint venture

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Question 5
Free
Multiple Choice

Bardron, an information technology company in the country of Conimount, wanted to start its business in the country of Bertholt. Hence, it bought Lecden Corp, a severely underperforming information technology company in the country of Bertholt. This scenario is an example of _____ .

Choose correct answer/s
A

strategic alliance

B

direct foreign investment

C

direct export

D

joint venture

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Question 6
Multiple Choice

DepDevs, an investment company in the country of Onimount, has purchased several small companies in Primelom, a third world country. DepDevs plans to revive these companies by investing their funds in them and improving their performances in the market. This scenario is an example of _____ .

Choose correct answer/s
A
strategic alliance
B
direct foreign investment
C
direct export
D
joint venture
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Question 7
Multiple Choice

Hutlot Corp., a clothing company in the country of Pretnola, bought a small clothing company named Midlews in the country of Limlouth. Hutlot is going to sell its own designs through Midlews, and it believes that this venture will be extremely successful. This scenario is an example of _____ .

Choose correct answer/s
A
strategic alliance
B
direct foreign investment
C
direct export
D
joint venture
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Question 8
Multiple Choice

Jimland's government has severe restrictions toward the entry of foreign companies into the country. A foreign company interested in Jimland would have to purchase an existing company in order to conduct its business there. Hence, companies can only enter Jimland through a _____ .

Choose correct answer/s
A
strategic alliance
B
direct foreign investment
C
direct export
D
joint venture
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Question 9
Multiple Choice

_____ is a government's use of trade barriers to shield domestic companies and their workers from foreign competition.

Choose correct answer/s
A
Protectionism
B
Developmentalism
C
Economic nationalism
D
Centralism
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Question 10
Multiple Choice

Which of the following best defines a tariff?

Choose correct answer/s
A
It is a specific limit on the volume of imported goods.
B
It is a direct tax on imported goods.
C
It is a complete ban on trade of a certain item.
D
It is a limit on the number of products exported to a particular country.
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Question 11
Multiple Choice

Unlike nontariff barriers, tariffs _____ .

Choose correct answer/s
A
decrease the cost of exported goods
B
increase the cost of imported goods
C
are direct taxes on imported goods
D
are nontax methods of reducing the volume of imported goods
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Question 12
Multiple Choice

_____ are defined as nontax methods of increasing the cost or reducing the volume of imported goods.

Choose correct answer/s
A
Nontariff barriers
B
Grants
C
Nonresident barriers
D
Quorums
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Question 13
Multiple Choice

_____ are specific limits on the number or volume of imported products.

Choose correct answer/s
A
Tariffs
B
Quotas
C
Subsidies
D
Embargoes
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Question 14
Multiple Choice

In the context of nontariff barriers, which of the following is a similarity between quotas and voluntary export restraints?

Choose correct answer/s
A
Both impose a complete ban on any kind of trade with a specific country.
B
Both limit the amount of a product that can be imported annually.
C
Both are imposed by the exporting country rather than the importing country.
D
Both levy a direct tax on imported goods.
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Question 15
Multiple Choice

The difference between voluntary export restraints and quotas is that:

Choose correct answer/s
A
unlike quotas, voluntary export restraints limit the amount of a product that can be imported annually.
B
unlike quotas, voluntary export restraints are imposed by the importing company.
C
unlike quotas, voluntary export restraints limit the amount of a product that can be exported annually.
D
unlike quotas, voluntary export restraints are imposed by the exporting company.
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Question 16
Multiple Choice

In the context of nontariff barriers, _____ include government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition.

Choose correct answer/s
A
export restraints
B
embargoes
C
quotas
D
subsidies
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Question 17
Multiple Choice

Which of the following trade barriers is established to protect the health and safety of citizens?

Choose correct answer/s
A
Tariffs
B
Quotas
C
Government import standards
D
Voluntary export restraints
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Question 18
Multiple Choice

The _____ is a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property.

Choose correct answer/s
A
Asia-Pacific Economic Cooperation
B
General Agreement on Tariffs and Trade
C
Tripartite Free Trade Agreement
D
Maastricht Treaty
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Question 19
Multiple Choice

Which of the following statements is true of the World Trade Organization (WTO)?

Choose correct answer/s
A
It ensures that trade between nations flows as predictably and freely as possible.
B
It transforms different economies and currencies into one common economic market.
C
It aims to create a unified South America by permitting free movement between nations.
D
It aims to establish regions in Europe as a single market by eliminating all tariffs by 2019.
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Question 20
Multiple Choice

Which of the following is a regional trade agreement between most European countries?

Choose correct answer/s
A
The Maastricht Treaty of Europe
B
The Single European Act
C
The EEC and EURATOM treaties
D
The Treaty of Brussels
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