Grade Details

1.

Question:
An unfavorable balance of trade occurs when the value of:

Your
Answer:

imports equals the value of exports.

CORRECT

imports exceeds the value of exports.

cash inflows are equal to the value of cash outflows.
exports exceed the value of imports.

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.

CORRECT

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

Points 1 of 1
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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.

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4. Question:
An important principle for firms desiring to export is:

CORREC
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sell to countries with a higher standard of living than your country

has.
realize that American methods are always best.

Your
Answer:

CORREC

find a need in the global market and fill it.

if your product sells well in the U.S. it will sell well globally.

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

Your
Answer:

will experience an exchange rate decrease.

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

CORRECT

Points 1 of 1
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6. Question:
Foreign investment in the U.S. is seen as a sign of ________ in the U.S. economy.

Your
Answer:

inflation
a favorable balance of trade
weakness
strength

CORRECT

Points 1 of 1
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7. Question:
Using contract manufacturing as a strategy to reach global markets offers firms the advantage of:

Your
Answer:

significant start-up costs.

reduced risks.
increased volatility.
currency stability.

CORRECT

Points 1 of 1
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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

CORRECT

fell
remained constant
floated unpredictably

Points 1 of 1
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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.

CORRECT

export cap.

Points 1 of 1
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10 Question:
.

The strength of U.S. economy helps explain why:

Your
Answer:

foreign direct investment in the United States has grown steadily.

CORREC
T

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.

Points 1 of 1
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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.

CORRECT

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

Points 1 of 1
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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.

CORRECT

is not a multinational corporation.

is contributing to the U.S. balance of trade deficit.
will benefit greatly from the establishment of NAFTA.

Points 1 of 1
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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:
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.

Your
Answer:

changes in the supply of and/or demand for dollars in the global

currency market.

CORREC
T

Points 1 of 1
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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.

CORRECT

national security problems.

increased illegal immigration from Mexico.

Points 1 of 1
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15 Question:
.
Which of the following best describes the impact of the Internet on global
market transactions?
Your
Answer:

The use of email has minimized the risk of expropriation

of a firm's assets by a foreign government.
The Internet allows new competitors entering a
CORREC
foreign market to bypass the traditional distribution
T
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
Answer:

the breakdown of traditional religious institutions.

a failure of leadership to establish ethical standards.

CORREC
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the increase in lawsuits used to avoid personal responsibility.

the nation's business schools that tolerate unethical behavior in
students.

Points 1 of 1
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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

CORRECT

federal disclosure statement.

annual report.

Points 1 of 1
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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
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4. Question:
Businesses can best meet their responsibility to society by:

Your
Answer:

creating markets for domestic products.

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

CORRECT

creating wealth for their stockholders.

Points 1 of 1
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5. Question:
Ethical problems and issues of social responsibility are:

Your
Answer:

unique to firms involved in global trade.

unique to the United States.
not unique to the United States.

INCORRECT
CORRECT ANSWER

less important now than in the past.

Points 0 of 1
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6. Question:
Ethical behavior covers a ________ range of conduct than does legal behavior.

Your
Answer:

wider

CORRECT

more limited
smaller
less demanding

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7. Question:
Business relationships often present ethical dilemmas that are ________.

Your
Answer:

not easily resolved.

easily resolved by following the relevant laws.

CORRECT ANSWER
INCORRECT

best resolved by creating a lose-lose situation.

irrelevant and therefore require no action.

Points 0 of 1
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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.

CORRECT

structure and strategy.

short run profit maximization.

Points 1 of 1
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9. Question:
Environmental quality is considered to be a public good. This means that:

Your
Answer:

ultimately it is the public that pays for environmental clean up.

businesses have a responsibility to minimize their environmental
pollution.
everyone enjoys a cleaner environment regardless of who pays for CORREC
it.
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society places a higher value on private goods and services.

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10 Question:
.

Issues of social responsibility and ethical behavior are:

Your
Answer:

INCORRECT

the result of greed found in capitalist countries.

found primarily in countries with a low standard of
living.
a concern only of business professors.
found in many different countries.

CORRECT
ANSWER

Points 0 of 1
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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?

CORRECT

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

Points 1 of 1
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12 Question:
.

Top leaders in government and business today are:

Your
Answer:

held to higher ethical standards than in the past.

CORRECT

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.

Points 1 of 1
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13 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:

CORRECT

an integrity-based ethics code.

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

Points 1 of 1
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14 Question:
.

The most important factor causing businesses to vigorously enforce ethical standards is the:

Your
Answer:

desire to eliminate employee turnover.

CORRECT

fear of negative publicity.

focus on criminal penalties.
evasion of social audit measurements.

Points 1 of 1
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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.

Points 1 of 1
Received:

CORRECT