BUSI 303 exam 2 complete solutions

·         Question 1

2.5 out of 2.5 points

Centralization allows decision making authority to occur where the decisions are to be made.

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·         Question 2

2.5 out of 2.5 points

The intent of forming a trading bloc can range from the potential of trade creation to the desire for economic protectionism.

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·         Question 3

2.5 out of 2.5 points

The four categories of motivational reasons why companies expand globally are: primary, alternate, proactive and reactive.

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·         Question 4

2.5 out of 2.5 points

Two major contributing circumstances to the demise of the gold standard were the Great Depression and the Vietnam War.

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·         Question 5

2.5 out of 2.5 points

OPEC was founded in 1960 in Baghdad.

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·         Question 6

2.5 out of 2.5 points

Export intermediaries provide expertise to inexperienced exporters as they enter overseas markets.

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·         Question 7

2.5 out of 2.5 points

The greater division of labor is a benefit of trading blocs.

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·         Question 8

2.5 out of 2.5 points

In the U.S., the President sets exchange rate policies.

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·         Question 9

2.5 out of 2.5 points

Competitive pressure, excess capacity, underproduction, and a saturated or declining home market are reactive motivational factors that propel firms to expand into the global economy

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·         Question 10

2.5 out of 2.5 points

The initial goal of NAFTA was to increase investment and decrease tariffs between Mexico and the U.S.

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·         Question 11

2.5 out of 2.5 points

An ISO is, in actuality, a codification or assurance of quality and ISO is an internationally recognized certification system or process.

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·         Question 12

2.5 out of 2.5 points

Trading blocs are the core elements of regional economic integration. .

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·         Question 13

2.5 out of 2.5 points

Total Quality Management (TQM) should be based, trust in order to establish a solid foundation.

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·         Question 14

2.5 out of 2.5 points

Low intensity and high intensity are the two types of entry modes used to access markets

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·         Question 15

2.5 out of 2.5 points

A large portion of all FX market transactions are spot transactions.

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·         Question 16

2.5 out of 2.5 points

The convergence of international and domestic pricing also indicates the era of the global producer.

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·         Question 17

2.5out of 2.5 points

National customer preferences is a market expansion risk variable that occurs when the firm may not understand foreign customer preferences and fail to offer “localized” products and services.

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·         Question 18

2.5 out of 2.5 points

Firms are better off selecting non-equity, low-investment entry modes in countries that have high environmental uncertainty.

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·         Question 19

2.5 out of 2.5 points

The adoption of the floating exchange rate system resulted from the conclusion of the Bretton Woods Agreement.

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·         Question 20

2.5out of 2.5 points

Production related reasons seem to be relatively small motivational factors for domestic firms expand globally.

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·         Question 21

2.5 out of 2.5 points

Firms with reactive motivation will most likely enter the international market because they want to take the initiative, while proactive firms expand internationally by necessity to remain competitive.

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·         Question 22

2.5 out of 2.5 points

The major disadvantages to the new form of centralization are that it does not allow for innovative thinking, nor does it engender employee initiative for problem solving.

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·         Question 23

2.5out of 2.5 points

A license is an agreement that allows one party to use an industrial property right in exchange for payment to the other party. The party giving the license is the licensee, while the party that gets to use the right is the licensor.

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·         Question 24

2.5out of 2.5 points

The SBA will provide prospective businessmen with “face to face” services at one of their approximately 73 regional offices located within the United States.

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·         Question 25

2.5out of 2.5 points

Firms are not at risk if they decide not to carefully examine, assess and evaluate a country’s organizational, social, cultural, political, judicial, market, economic, technological and industry trends prior to determining whether the entry into an international market is financially viable. 

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·         Question 26

2.5 out of 2.5 points

Decisions to move domestic operations and products into the global marketplace include the desire to increase sales and profitability and cost reductions from full or partial operational relocation to a foreign nation.

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·         Question 27

0 out of 2.5 points

Continuity is an important aspect of the KANBAN cluster, which holds the distance between the supplier and the manufacturing hub as a key focus in the acquisition of raw materials.

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·         Question 28

2.5 out of 2.5 points

In a Free Trade Area, member nations are allowed to determine their own trade policies with non-members.

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·         Question 29

2.5 out of 2.5 points

In process planning, make or buy decisions can be taken lightly.

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·         Question 30

2.5 out of 2.5 points

The main difference between low intensity and high intensity entry modes depends on how much risk and/or control an entering business is willing to accept or forgo. .

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