Understanding Canadian Business 10Th Canadian Edition by William G Nickels - Test Bank

Understanding Canadian Business 10Th
Canadian Edition By William G Nickels –

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Sample Test
Chapter 03
Competing in Global Markets

True / False Questions
1. Importing is the selling of products to another country.

FALSE

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the
global market and the roles of comparative advantage and
absolute advantage in global trade.
Topic: 03-01 The Dynamic Global Market
2. Exporting involves the selling of products to another

country.
TRUE

Difficulty: Easy
3. One reason countries trade with other countries is that

even technologically advanced nations cannot produce all
the products their people want and need.
TRUE

Difficulty: Easy
Topic: 03-02 Why Trade with Other Nations?
4. Free trade is the movement of goods and services among

nations without political or economic barriers.
TRUE

Difficulty: Easy
5. Global trade includes the exchange of goods and services

across national borders.
TRUE

Difficulty: Easy
6. Absolute advantage is the basis for most global trade.

FALSE

Difficulty: Medium
Topic: 03-03 The Theories of Comparative and Absolute
Advantage
7. Comparative advantage theory states that a country

should sell to other countries those products that it
produces most efficiently and buy from other countries
those products it cannot produce as efficiently.
TRUE

Difficulty: Medium
Advantage
8. Canada has a comparative advantage in coffee and shoes.

FALSE

Difficulty: Medium
Advantage
9. A country has an absolute advantage if it has a monopoly

in the production of a specific product or is able to
produce it more efficiently than all other nations.
TRUE

Difficulty: Easy
Advantage
10. Today there are few examples of absolute advantage
in global markets.
TRUE

Difficulty: Medium
Advantage
11. According to the theory of comparative advantage, a

country should buy from other countries those goods it
produces most efficiently.
FALSE

Difficulty: Medium
Advantage
12. The comparative advantage theory states that all

nations should strive to become self-sufficient in order to
enjoy the highest standard of living.
FALSE

Difficulty: Hard
Advantage
13. The theory of absolute advantage explains most of

today’s global trade.
FALSE

Difficulty: Hard
Advantage
14. Flynn Graphics is a small Canadian firm that began

selling its products in the global market a few years ago.
Flynn’s global approach is unusual, since the trend has
been for small firms to focus on domestic markets,
leaving global markets to larger firms.
FALSE

Difficulty: Medium
Learning Objective: 03-02 Explain the importance of importing
and exporting; and define key terms used in global business.
Topic: 03-04 Getting Involved in Global Trade
15. Anything that can be imported into Canada can be

sold within Canada.
FALSE

Difficulty: Easy
Topic: 03-05 Importing Goods and Services
16. Exports account for about 5% of Canadian jobs.

FALSE

Difficulty: Hard
Topic: 03-06 Exporting Goods and Services
17. Canada in 2009 registered its first favourable

balance of trade with the rest of the world.
FALSE

Difficulty: Medium
Topic: 03-07 Measuring Global Trade
18. A favourable balance of trade is also known as a

trade surplus.
TRUE

Difficulty: Easy
19. A favourable balance of trade occurs when the value

of a country’s imports exceeds the value of its exports.
FALSE

Difficulty: Easy
20. The balance of payments measures the inflows and

outflows of money from tourism, foreign aid, military
expenditures and foreign investments as well as flows
resulting from exports and imports.
TRUE

Difficulty: Easy
21. Canada, as of 2014, enjoys a trade surplus in the

global market.
FALSE

Difficulty: Medium
22. When trading in global markets, most countries

prefer to import more than they export.
FALSE

Difficulty: Medium
23. A trade deficit occurs when the value of a country’s

exports exceeds that of its imports.
FALSE

Difficulty: Easy
24. In measuring the effectiveness of global trade,

countries look at the balance of trade and GDP.
FALSE

Difficulty: Easy
25. The country of Urbanistan exports $250 of goods and
services and imports $170 of goods and services.
Urbanistan has an unfavourable balance of trade of $80.
FALSE

Difficulty: Medium
26. Canada, in 2014, recorded its first trade surplus in 15

years.
FALSE

Difficulty: Medium

of a nation’s exports exceeds its imports.
TRUE

Difficulty: Medium
28. Canada’s main trading partner is the European Union.

FALSE

Difficulty: Medium
Topic: 03-08 Trading in Global Markets: The Canadian
Experience
29. Countries enjoying high growth rates and rapid

increases in living standards are known as emerging
economies.
TRUE

Difficulty: Medium
Topic: 03-09 Canada’s Priority Markets Canada’s Priority
Markets
30. To expand Canada’s profile in new and emerging

markets, the Canadian government has identified 25
priority markets around the world.
FALSE

Difficulty: Medium
Markets
31. The federal government of Canada has developed its

Global Markets Action Plan. The plan identifies three
priority market types: emerging markets with broad
Canadian interests, emerging markets with specific
opportunities for Canadian businesses, and established
markets with broad Canadian interests.
TRUE

Difficulty: Hard
Markets
32. A Conference Board of Canada report notes that by

2050, India will be the world’s third-largest economy, with
a GDP approaching US$30 trillion, behind only the United
States and China, which will top the list.
TRUE

Difficulty: Medium
Markets
33. Of the strategies available to reach global markets,

licensing offers the firm the greatest opportunity for profit
potential.
FALSE

Difficulty: Easy
Learning Objective: 03-03 Illustrate the strategies used in
reaching global markets and explain the role of multinational
corporations in global markets.
Topic: 03-10 Strategies for Reaching Global Markets
34. One advantage of foreign licensing is that the

licensor spends little or no money to produce and market
their product.
TRUE

Difficulty: Easy
Topic: 03-11 Licensing
35. One advantage of foreign licensing as a strategy to

enter the global market is the sharing of trade secrets.
FALSE

Difficulty: Easy
36. Tokyo Disneyland is an example of an export trading

company.
FALSE

Difficulty: Medium
Topic: 03-12 Exporting
37. Canadian companies export goods, not services.

FALSE

Difficulty: Easy
38. Export trading companies assist businesses in

getting paid for export transactions.
TRUE

Difficulty: Easy
39. Export trading companies help to match buyers and

sellers from different countries.
TRUE

Difficulty: Easy
40. Franchising is popular both domestically and

internationally.
TRUE

Difficulty: Easy
Topic: 03-13 Franchising
41. A Canadian franchise example is Tim Hortons.

TRUE

Difficulty: Medium
42. While franchising is popular in Canada, it is not an

accepted strategy for firms in the global market.
FALSE

Difficulty: Easy
43. One way to satisfy an unexpected increase in sales

is through contract manufacturing.
TRUE

Difficulty: Hard
Topic: 03-14 Contract Manufacturing
44. Contract manufacturing is an example of

outsourcing.
TRUE

Difficulty: Medium
45. Contract manufacturing involves the production of

private-label goods by a foreign company to which a
domestic company then attaches its brand name or
trademark.
TRUE

Difficulty: Easy
46. A joint venture is a partnership in which two or more

companies join to undertake a major project.
TRUE

Difficulty: Easy
Topic: 03-15 International Joint Ventures and Strategic
Alliances
47. The Tsingtao Brewing Company pays a fee to

Anheuser-Busch for the right to brew and distribute
Budweiser in China. This is an example of a joint venture.
FALSE

Difficulty: Medium
Alliances
48. One benefit of an international joint venture is
sharing the risk of a major project.
TRUE

Difficulty: Medium
Alliances
49. A firm desiring to enter a foreign market with a

limited investment should consider a joint venture.
FALSE

Difficulty: Medium
Alliances
50. When Nestle, a Swiss company, purchased

Carnation, a U.S. company, it resulted in Carnation
becoming a foreign licensee.
FALSE

Difficulty: Hard
Alliances
51. A strategic alliance allows Nike to utilize a German

firm to produce their shoes in Europe.
FALSE

Difficulty: Medium
Alliances
52. Xanadu Enterprises wants to sell its products in the

centrally planned economy of North Vietnam, but the
Vietnamese government will allow Xanadu entry into its
markets only if it enters into a major partnership with
Vietnamese producers. The Vietnamese government is
requiring Xanadu to enter into a joint venture
arrangement.
TRUE

Difficulty: Medium
Alliances
53. According to current Canadian laws, Canadian firms
are prohibited from participating in joint ventures with
foreign firms.
FALSE

Difficulty: Medium
Alliances
54. A strategic alliance is a short-term partnership

between two or more firms.
FALSE

Difficulty: Easy
Alliances
55. Foreign direct investment refers to the buying of

goods produced in another country.
FALSE

Difficulty: Easy
Topic: 03-16 Foreign Direct Investment
56. Foreign investment in a country can be viewed as a

sign of strength in the country’s economy.
TRUE

Difficulty: Hard
57. The Honda automobile assembly plant in Alliston,

Ontario is an example of foreign direct investment in
Canada.
TRUE

Difficulty: Medium
58. An example of foreign direct investment would be

Pepsi granting a Japanese firm the use of its formula and
trademark for a fee.
FALSE

Difficulty: Medium
59. Canadian subsidiaries of foreign-based companies

have played a major role in developing the Canadian
economy.
TRUE

Difficulty: Hard
60. Any corporation that exports at least 50 percent of

its total output can be classified as a multinational
corporation.
FALSE

Difficulty: Easy
61. The country where a parent firm is located is called

the home country.
TRUE

Difficulty: Easy
62. Only firms with a physical presence in different

nations can be truly called a multinational corporation.
TRUE

Difficulty: Easy
63. Tim Hortons is an example of a Canadian

multinational.
FALSE

Difficulty: Medium
64. A firm may export everything it produces overseas

and yet not be considered a multinational.
TRUE

Difficulty: Hard
65. Strategic alliances are the same as joint ventures.

FALSE

Difficulty: Medium
66. Hewlett-Packard has established a relationship with

Hitachi to help each company build a competitive market
advantage. This is an example of a joint venture.
FALSE

Difficulty: Hard
67. A strategic alliance is similar to a joint venture

because they typically involve sharing costs, risks,
management and even profits.
FALSE

Difficulty: Hard
68. Nestle is an example of a major firm with many

foreign subsidiaries and a multinational corporation.
TRUE

Difficulty: Hard
69. Successful multinational corporations disregard

cultural differences between countries in which they
operate.
FALSE

Difficulty: Easy
Learning Objective: 03-04 Evaluate the forces that affect
trading in global markets.
Topic: 03-18 Sociocultural Forces
70. Sociocultural forces that affect global businesses

include customs, language, and religion.
TRUE

Difficulty: Easy
71. Effective management styles are transferable from

one culture to another.
FALSE

Difficulty: Easy
72. Effective marketing strategies focus on the product

and ignore the sociocultural differences in the global
environment.
FALSE

Difficulty: Easy
73. In global markets, cultural differences affect

marketing strategies but not management policies.
FALSE

Difficulty: Easy
74. An exchange rate is the value of one nation’s

currency relative to the currencies of other nations.
TRUE

Difficulty: Easy
Topic: 03-19 Economic and Financial Forces
75. An increase in the exchange rate value of the dollar

causes the dollar price of foreign made goods to
decrease.
TRUE

Difficulty: Easy
76. Bartering is the exchange of goods or services for

other goods or services with no exchange of money
involved.
TRUE

Difficulty: Medium
77. Efficient currency exchange markets have eliminated

countertrade in global business transactions.
FALSE

Difficulty: Easy
78. Currency fluctuations can cause problems to firms

trading in the global market.
TRUE

Difficulty: Easy
79. Canadian firms must follow Canadian laws in

conducting business globally.
TRUE

Difficulty: Medium
Topic: 03-20 Legal Forces
80. In global markets, no central system of laws exists.

TRUE

Difficulty: Medium
81. The OECD has led global efforts to fight corruption.

TRUE

Difficulty: Medium
82. Global efforts to fight corruption have had limited

success.
TRUE

Difficulty: Medium
83. Differences in electrical systems throughout the

world can impair a Canadian firm’s ability to sell its
products to other countries.
TRUE

Difficulty: Hard
Topic: 03-21 Physical and Environmental Forces
84. Internet usage in many developing countries may be

limited.
TRUE

Difficulty: Hard
Topic: 03-21 Physical and Environmental Forces
85. Trade protectionism is the use of government

regulations to encourage the import of goods and
services.
FALSE

Difficulty: Easy
Learning Objective: 03-05 Debate the advantages and
disadvantages of trade protectionism; define tariff and non-
tariff barriers; and give examples of common markets.
Topic: 03-22 Trade Protectionism
86. Countries often use trade protectionism measures to

protect their domestic industries from foreign
competition.
TRUE

Difficulty: Easy
87. Some governments may offer incentives to certain

industries to sell goods in global markets for less than
they sell them at home.
TRUE

Difficulty: Medium
88. Protective tariffs are designed to raise money for the

government.
FALSE

Difficulty: Easy
89. An import quota is a complete ban on the import or
export of certain products.
FALSE

Difficulty: Easy
90. A complete ban on the import or export of a specific

good is called an embargo.
TRUE

Difficulty: Easy
91. The restrictive standards that detail exactly how a

product must be sold in a country are examples of tariff
barriers to global trade.
FALSE

Difficulty: Easy
92. Non-tariff barriers can be just as detrimental to free
trade as tariffs.
TRUE

Difficulty: Easy
93. The main goal of the General Agreement on Tariffs

and Trade (GATT) was to establish a free trade area
among the nations of North America.
FALSE

Difficulty: Easy
Topic: 03-23 The GATT and the WTO
94. The World Trade Organization (WTO) was established

to mediate trade disputes and oversee global business
practices.
TRUE

Difficulty: Easy
95. The WTO has been able to solve all global trade
problems.
FALSE

Difficulty: Easy
96. The WTO is made up of 102 member-nations.

FALSE

Difficulty: Medium
97. One goal of the World Trade Organization (WTO) is to

increase national subsidies on agricultural products.
FALSE

Difficulty: Easy
98. The IMF was created in 1990.

FALSE

Difficulty: Medium
Topic: 03-24 The IMF and the World Bank
99. The function of the IMF is very similar to that of the

World Bank.
TRUE

Difficulty: Easy
100. The World Bank is concerned with lending money to

developed nations.
FALSE

Difficulty: Easy
101. Cartels are all contradictions to unrestricted free

trade and letting the market set prices.
TRUE

Difficulty: Medium
Topic: 03-25 Producers’ Cartels
102. OPEC is an example of a cartel.

TRUE

Difficulty: Medium
Topic: 03-25 Producers’ Cartels
103. NAFTA is an agreement between two countries:

Canada and the United States.
FALSE

Difficulty: Medium
Topic: 03-26 Common Markets
104. The North American Free Trade Agreement (NAFTA)

has been in place for over a decade.
TRUE

Difficulty: Medium

was driven by the desire of Canada to have access to the
U.S. market.
FALSE

Difficulty: Hard

requires member nations to negotiate uniform trade
agreements with non-member nations.
FALSE

Difficulty: Medium
107. The EU began in 1993.

FALSE

Difficulty: Medium
108. The EU debt crisis was triggered by a small number

of European countries overspending and over-borrowing.
TRUE

Difficulty: Medium
109. The benefits and costs of a common market like the

North American Free Trade Agreement (NAFTA) are still
being debated today.
TRUE

Difficulty: Hard
110. A major step in European unification was the

adoption of the Euro.
TRUE

Difficulty: Medium
111. India’s population of over 1 billion represents a

tremendous opportunity for firms.
TRUE

Difficulty: Easy
Learning Objective: 03-06 Discuss the changing landscape of
the global market.
Topic: 03-27 Globalization and Your Future
112. The term “BRIC” includes the countries of Bolivia,

Russia, India, and Canada.
FALSE

Difficulty: Easy
the global market.
113. Profitable opportunities in the global markets are

diminishing for small and medium-sized businesses.
FALSE

Difficulty: Easy
the global market.
114. As a market for Canadian exports, China represents

the only major business opportunity for Canadian firms
today.
FALSE

Difficulty: Medium
the global market.
115. Only large firms have the resources needed to

successfully compete in the global environment.
FALSE

Difficulty: Hard
the global market.

Multiple Choice Questions
116. ____________ is the selling of goods and services to

other countries.
A.In-trading
B. Exporting
C. Importing
D. Dumping

Difficulty: Easy
117. _____________ is the purchase of goods and services

produced in foreign countries.
A.Importing
B. Outsourcing
C. Retailing
D. Exporting

Difficulty: Easy
118. The world is home to over ____ billion potential

customers.
A.one
B. three
C. five
D. seven

Difficulty: Medium
119. All of the following are advantages of free

trade, except:
A.free trade helps keep interest rates high.
B. the global market consists of over 7 billion potential
customers.
C. global competition helps to keep prices down.
D. productivity increases in areas of comparative
advantage.

Difficulty: Hard
120. ___________ for a country occurs when it has a

monopoly on producing a product or is able to produce it
at a cost below that of all other countries.
A.Comparative advantage
B. Absolute advantage
C. Complete advantage
D. Dumping advantage

Difficulty: Easy
Advantage
121. Which theory states that a nation should produce and

sell goods to other countries that it produces most
efficiently, and buy goods produced more efficiently by
other countries?
A.Comparative advantage
B. Absolute advantage
C. Mercantilism
D. Bilateral advantage

Difficulty: Medium
Advantage
122. Country A is an extremely efficient producer of tin.

However, its climate and terrain make it difficult to
produce corn. According to the theory of comparative
advantage, Country A should:
A.produce both tin and corn in order to remain self-
sufficient.
B. watch the global market to see which product brings
the highest price.
C. import the resources needed to produce corn.
D. concentrate its production on tin and buy corn from an
efficient producer.

Difficulty: Medium
Advantage
123. Comparative advantage theory was first put forward

by which of the following?
A.Adam Smith
B. The WTO
C. David Ricardo
D. The World Bank

Difficulty: Medium
Advantage
124. In which of the following products does Canada enjoy

a comparative advantage in global trading?
A.iPods
B. Shoes
C. Forestry products
D. Computer chips

Difficulty: Hard
Advantage
125. Today there are _____ instances of absolute

advantage in global markets.
A.many
B. a growing number
C. very few
D. no

Difficulty: Medium
Advantage
126. Maureen, a Canadian resident, was surprised to see

that her home computer was actually made in Japan.
Maureen did not know she had purchased a(n):
A.imported item.
B. exported item.
C. protected good.
D. generic good.

Difficulty: Hard
Advantage
127. Climate and terrain in several South American

countries are conducive to growing coffee efficiently.
While other countries can grow coffee, they are not as
productive or efficient. This fact would lead you to believe
that the South American countries have a(n)
_________________ advantage in the production of coffee.
A.comparative
B. absolute
C. unprotected
D. progressive

Difficulty: Hard
Advantage
128. The only deposits of a rare mineral known as shozet

are found in the nation of Swanland. Since no other nation
has deposits of shozet, Swanland has a(n) __________ in the
production of this mineral.
A.protected advantage
B. diversified benefit
C. absolute advantage
D. relative internal benefit

Difficulty: Hard
Advantage
129. Which of the following statements best describes the

theory of comparative advantage?
A.The best way for a nation to ensure full employment is
to be totally self-sufficient rather than relying on other
nations to obtain goods and services.
B. Each nation should produce those goods that it can
produce more efficiently than other nations and buy the
goods it cannot produce efficiently from other nations.
C. The nation that has the largest reserves of gold and
other natural resources will enjoy a position of
comparative advantage in trade relationships.
D. A nation should produce those goods for which
domestic demand is comparatively strong and should
import those goods for which domestic demand is
comparatively weak.

Difficulty: Hard
Advantage
130. Many of the toy products sold in Canada are imported
from Taiwan because the Taiwanese can produce these
products more effectively and efficiently than we can in
Canada. This is an example of:
A.a bilateral free trade agreement.
B. the theory of comparative advantage.
C. the theory of absolute advantage.
D. a multilateral resource priority.

Difficulty: Hard
Advantage
131. Patrick’s Products has a manufacturing plant near

Calgary. The plant specializes in compact washers and
dryers for countries in which consumers have less living
space. Patrick’s Products participates in the global
market through:
A.importing
B. dumping
C. exporting
D. balancing trade

Difficulty: Hard
Topic: 03-06 Exporting Goods and Services
132. Last year, the nation of Kwansai reported that it had
a favourable balance of trade even though it imported $11
billion worth of goods. This indicates that Kwansai:
A.exported $11 billion worth of goods.
B. exported more than $11 billion worth of goods.
C. overpriced the value of its exports.
D. exported less than $11 billion worth of goods.

Difficulty: Hard
133. The nation of Redland reported that their imports for

the previous year were $4 billion greater than its exports.
During the same period, Redland reported a favourable
balance of payments. This information suggests:
A.Redland has made an error in their reporting. The nation
must have had a balance of payments deficit since more
money flowed out of Redland for imports than flowed into
the country for its exports.
B. Redland’s gold reserves have increased in value.
C. Money inflows from tourism, foreign aid, foreign
investment and other sources more than offset Redland’s
trade deficit.
D. Redland devalued their currency to obtain a more
favourable exchange rate.

Difficulty: Hard
134. Last year, the nation of Tigerland imported goods
totalling $500 million and exported products totalling
$386 million. Tigerland experienced a(n):
A.unfavourable balance of trade.
B. favourable balance of trade.
C. trade surplus.
D. benefit from membership in a free trade zone.

Difficulty: Hard
135. What is it called when more money is flowing out of a

country than flowing into it?
A.Unfavourable balance of payments
B. Unfavourable balance of trade
C. Exporting
D. Free trade

Difficulty: Medium
136. When Steam Whistle Breweries of Toronto sells beer

to Germany, the sales of its product would be classified
as a Canadian:
A.countertrade arrangement.
B. export.
C. import.
D. foreign aid shipment.

Difficulty: Easy

of:
A.imports equals the value of exports.
B. cash inflows equal the value of the cash outflows.
C. imports is less than the value of exports.
D. the dollar is greater than the value of the euro.

Difficulty: Easy
138. An unfavourable balance of trade occurs when the

value of:
A.imports equal the value of exports.
B. imports exceed the value of exports.
C. cash inflows are equal to the value of cash outflows.
D. exports exceed the value of imports.

Difficulty: Easy
139. All of the following are considered when calculating
a country’s balance of payments, except:
A.foreign aid.
B. military expenditures.
C. domestic inflation rates.
D. tourism.

Difficulty: Hard
140. Which country is Canada’s largest trading partner?

A.China
B. The United States
C. Japan
D. Russia

Difficulty: Medium
Topic: 03-08 Trading in Global Markets: The Canadian
Experience
141. Emerging economies include all of the following

factors, except:
A.Rising inflation.
B. High growth rates.
C. Increasing living standards.
D. A rising global prominence.

Difficulty: Hard
Markets
142. In allocating resources to promote new and emerging

markets for Canadian exports, the federal government is:
A.targeting only China as China is their second-largest
trading partner.
B. targeting only India as they are not able to compete
with the other countries who are trading with China.
C. identifying 21 priority markets that have the greatest
potential for growth.
D. doing nothing, as they don’t have the funding available
to compete with the United States in developing new and
emerging markets.

Difficulty: Easy
Markets
143. What two priority markets are of particular interest

to Canada due to their size and economic transformation?
A.Russia, Brazil.
B. United States, Brazil.
C. China, India.
D. Japan, Russia.

Difficulty: Hard
Markets
144. Which of the following strategies offers the greatest

profit potential?
A.Licensing
B. Exporting
C. Foreign Direct Investment
D. Importing

Difficulty: Medium
Topic: 03-10 Strategies for Reaching Global Markets
145. A licensor may assist a licensee in what areas?

A.Promotion.
B. Foreign Direct Investment
C. Risk management.
D. Franchising.

Difficulty: Hard
146. In a licensing agreement, who pays for marketing the
product?
A.The licensor
B. The licensee
C. The franchisor
D. The government

Difficulty: Hard

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1. Importing is the selling of products to another country.

2. Exporting involves the selling of products to another

3. One reason countries trade with other countries is that

4. Free trade is the movement of goods and services among

5. Global trade includes the exchange of goods and services

6. Absolute advantage is the basis for most global trade.

7. Comparative advantage theory states that a country

8. Canada has a comparative advantage in coffee and shoes.

9. A country has an absolute advantage if it has a monopoly

11. According to the theory of comparative advantage, a

12. The comparative advantage theory states that all

13. The theory of absolute advantage explains most of

14. Flynn Graphics is a small Canadian firm that began

15. Anything that can be imported into Canada can be

16. Exports account for about 5% of Canadian jobs.

17. Canada in 2009 registered its first favourable

18. A favourable balance of trade is also known as a

19. A favourable balance of trade occurs when the value

20. The balance of payments measures the inflows and

21. Canada, as of 2014, enjoys a trade surplus in the

22. When trading in global markets, most countries

23. A trade deficit occurs when the value of a country’s

24. In measuring the effectiveness of global trade,

26. Canada, in 2014, recorded its first trade surplus in 15

27. A favourable balance of trade occurs when the value

28. Canada’s main trading partner is the European Union.

29. Countries enjoying high growth rates and rapid

30. To expand Canada’s profile in new and emerging

31. The federal government of Canada has developed its

32. A Conference Board of Canada report notes that by

33. Of the strategies available to reach global markets,

34. One advantage of foreign licensing is that the

35. One advantage of foreign licensing as a strategy to

36. Tokyo Disneyland is an example of an export trading

37. Canadian companies export goods, not services.

38. Export trading companies assist businesses in

39. Export trading companies help to match buyers and

40. Franchising is popular both domestically and

41. A Canadian franchise example is Tim Hortons.

42. While franchising is popular in Canada, it is not an

43. One way to satisfy an unexpected increase in sales

44. Contract manufacturing is an example of

45. Contract manufacturing involves the production of

46. A joint venture is a partnership in which two or more

47. The Tsingtao Brewing Company pays a fee to

49. A firm desiring to enter a foreign market with a

50. When Nestle, a Swiss company, purchased

51. A strategic alliance allows Nike to utilize a German

52. Xanadu Enterprises wants to sell its products in the

54. A strategic alliance is a short-term partnership

55. Foreign direct investment refers to the buying of

56. Foreign investment in a country can be viewed as a

57. The Honda automobile assembly plant in Alliston,

58. An example of foreign direct investment would be

59. Canadian subsidiaries of foreign-based companies

60. Any corporation that exports at least 50 percent of

61. The country where a parent firm is located is called

62. Only firms with a physical presence in different

63. Tim Hortons is an example of a Canadian