question

A change in administration in a foreign government that is hostile to foreign trade is an example of a(n)

answer

Political barrier.

question

Because many countries do not permit foreign companies to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with a firm from the host country by forming a

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Joint venture.

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Increased unemployment can reduce consumer demand for goods and services, leading to

answer

Deflation.

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____ have both tangible and intangible characteristics.

answer

Products

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An intermediary, or middleman, that markets goods in another country is acting as a(n)

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Export agent.

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When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis, this exemplifies a

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Strategic alliance.

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The American economic system is best described as _______ because the government regulates business to preserve competition and protect consumers and employees.

answer

Correct modified capitalism

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_________________ is the study of how resources are distributed for the production of goods and services within a social system.

answer

Economics

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Economic contraction occurs when

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Spending declines.

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Which of the following makes short-term loans to member countries with trade deficits and provides foreign currencies to member nations?

answer

International Monetary Fund

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When a firm is facing a hostile takeover attempt, it may issue a poison pill, which is

answer

Correct when the firm allows stockholders to buy up shares of stock at lower than market value.

question

The function concerned with obtaining and managing money and using it effectively is called

answer

Finance

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A written authorization assigning a stockholder's voting privilege to another is a

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Proxy

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The U.S. has a trade deficit because

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The U.S. imports more products than it exports.

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Financial resources are also known as _______________.

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Capital

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The organizational form that many consider to be a blend of the best characteristics of corporations, partnerships, and sole proprietorships is the

answer

Limited liability company.

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An important advantage of a corporation is its

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Limited liability.

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When Lever Brothers changes the formula of its bar soap to match different countries' water conditions and washing habits, this is an example of a

answer

Multinational strategy

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The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the

answer

Board of directors.

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Joint ventures are popular in situations that call for

answer

Large investments.

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When a firm's products are standardized in all countries,

answer

Advertising may have to be modified.

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A forum to discuss trade problems and negotiate a reduction of trade barriers was first provided by the

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General Agreement on Tariffs and Trade.

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In creating a corporation, once the articles of incorporation are filed with the appropriate state office, the state may then issue a corporate

answer

Charter

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____ relates to the number of goods and services that consumers are willing to buy at different prices at a specific time.

answer

Demand

question

Because Colombia can produce coffee so much more efficiently than other items produced there, it has which of the following advantages?

answer

Comparative

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A continuing rise in prices over a period of time refers to

answer

Inflation

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A favorable balance of trade exists when a country

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Exports more than it imports.

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Factors of production are

answer

Resources used to produce goods and services

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The effective translation of product names can be crucial to the success of a foreign marketing effort because of

answer

Cultural barriers.

question

Thomas thinks that organizing as a partnership would be best because

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It would allow them to rely on their own financial resources and talents.

question

A corporation that operates in several countries but without significant ties to any of them is a(n)

answer

Multinational.

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The functions of organizing, staffing, planning, and controlling are most closely associated with

answer

Managers

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___________ exists when there are many small businesses selling one standardized product.

answer

Pure Competition

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The legal documents that identify the basic agreements between partners are called

answer

Articles of partnership.

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If a business is to be successful in the long run, it must produce quality products, operate efficiently, and be

answer

Socially responsible.

question

When two companies combine to form a new company, it is called a(n)

answer

Merger

question

Which countries were merged into one market by NAFTA?

answer

Canada, the U.S., and Mexico

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Why was the World Bank formed?

answer

To loan money to underdeveloped and developing countries

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Which of the following forms of business organization restricts the number and type of shareholder?

answer

S-corporation

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When Nike has its athletic shoes produced by companies in Asia, the Nike name still appears on the shoes. This illustrates

answer

Contract manufacturing

question

Advertising, personal selling, coupons, and sweepstakes are forms of _____.

answer

Balance of payments.

question

The difference between the flow of money into and out of a country is called its

answer

Balance of payments.

question

Agricultural commodities are usually sold under which competitive environment?

answer

Pure competition

question

Trends have gradually changed the U.S. to a(n) _____ economy focused on making life easier for busy consumers.

answer

Service

question

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA) and the U.S. Postal Service is called

answer

Quasi-public.

question

When Apple introduced the iPad, the price of and demand for netbook and notebook computers were high. As a result,

answer

Other suppliers introduced competing products to take advantage of the demand.

question

Anand has been asked to join a new partnership that is developing wind energy technologies. Because the business is high risk, he does not want to be liable for the firm's debts if the project should fail. He could still participate as a

answer

Limited partner.

question

Ruji has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulation. Which business form might be best for her to use?

answer

Sole proprietorship

question

Which stockholders usually have the right to vote and control the board of directors?

answer

Common

question

The purchase of overseas production and marketing facilities is

answer

Contract manufacturing.

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