MIE 201 Test 1 - Questions and Answers When ABC Manufacturing buys parts and materials in large quantities and thereby obtains much better pricing and costsavings, it is utilizing _____. economies of scale The broadest
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MIE 201 Test 1 - Questions and Answers When ABC Manufacturing buys parts and materials in large quantities and thereby obtains much better pricing and costsavings, it is utilizing _____. economies of scale The broadest indicator of international trade is the ________. balance of payments Which one of the following statements does NOT accurately describe foreign exchange rates and currency valuations? a currency is called strong relative to another when its exchange rate is lower than what is expected normal If a country's government elects to bankroll exporters for their products by giving financial support, such subsidies will not lead to ________. free trade The government of Zenovia levies a surcharge of 200% on the value of every electronic product that is brought in the country. This is an example of _______. Tariffs FixIt Tools, an Indian tool manufacturer, has just entered the German market. FixIt started selling large quantities of its tools at a significantly lower price than the cost of production and below what FixIt would charge in India. This practice is called ________. Dumping Restricting the quantity of specific goods that nations allow to be imported during a given year is known as ________ Quotas A collection of five financial institutions whose main goals are eliminating the most extreme levels of poverty around the globe and enhancing the income of the poorest people in every nation is the ________. world bank The WTO is guided by fiveprinciples, which do NOT include ________. dictating policies to national governments ________________ is not one of the primary functions of the IMF. discouraging unfair practices Common markets that endorse trade within the region while creating barriers against goods entering the region from nonmember nations are known as ________. trading blocs Member countries of the European Union benefitted from switching to the common currency called the euro for all of the following reasons EXCEPT ________. in reducing transparency in pricing Member countries of the ________ represent 40 percent of the world's population and more than half of the world's gross domestic product (GDP). APEC Tips for improving communication with a person from another culture include all of the following EXCEPT ________. regarding the person as a representative of another culture ____________ exists in countries whose legal structure is based on religious principles. theocratic law Your roommate is from France and often judges individuals and groups according to French standards, behaviors, and customs. This tendency is called ______. Ethnocentrism When Company A sells products outside the country in which those products areproduced, it is engaging in which of the following? Exporting Which of the following allows a firm to use some or all of another company's intellectual property in exchange for a fee? Licensing Which term describes a long-term partnership between Company A and Company B to jointly develop, produce, or sell products? strategic alliance ________ occurs when a company enters a foreign market through ownership and control of assets in that country. foreign direct investment Company XYZ creates autonomous subsidiaries in each new country itenters, thereby giving local managers independence in decision making and running the unit. Company XYZ is enlisting which of the following strategies? multidomestic strategy A company is using a(n) __________ when it views the world as a single integrated market and maintains a highly centralized control on all units. global strategy
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