M Business OC Ferrell 6th edition – Test Bank

M Business OC Ferrell 6th edition – Test Bank

M: Business, 6e (Ferrell)

Chapter 3   Business in a Borderless World

1) International business involves the buying, selling, and trading of goods and services across national boundaries.

Answer:  TRUE

Explanation:  International business refers to the buying, selling, and trading of goods and services across national boundaries. Falling political barriers and new technology are making it possible for more and more companies to sell their products overseas as well as at home.

Difficulty: 1 Easy

Topic:  Definition of Business

Learning Objective:  03-01 Explore some of the factors within the international trade environment that influence business.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

2) Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

Answer:  TRUE

Explanation:  Nations and businesses engage in international trade to obtain raw materials and goods that are otherwise unavailable to them or are available elsewhere at a lower price than that at which they themselves can produce.

Difficulty: 1 Easy

Topic:  Trade Strategies Used in Reaching Global Markets

Learning Objective:  03-01 Explore some of the factors within the international trade environment that influence business.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

3) Most of the world’s population and two-thirds of its total purchasing power are outside the United States.

Answer:  TRUE

Explanation:  As differences among nations continue to narrow, the trend toward the globalization of business is becoming increasingly important. Indeed, most of the world’s population and two-thirds of its total purchasing power are outside the United States.

Difficulty: 1 Easy

Topic:  Definition of Business

Learning Objective:  03-01 Explore some of the factors within the international trade environment that influence business.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

4) Mario owns a company that manufactures bicycle parts. He sells his goods to foreign markets. This is called importing.

Answer:  FALSE

Explanation:  Importing is the purchase of goods and services from foreign sources.

Difficulty: 1 Easy

Topic:  Trade Strategies Used in Reaching Global Markets

Learning Objective:  03-01 Explore some of the factors within the international trade environment that influence business.

Bloom’s:  Remember

AACSB:  Knowledge Application

Accessibility:  Keyboard Navigation

5) The United States imports more from China than it exports; it has a positive balance of trade with China.

Answer:  FALSE

Explanation:  When a nation imports more than it exports, it has a negative balance of trade, or trade deficit.

Difficulty: 1 Easy

Topic:  Trade Strategies Used in Reaching Global Markets

Learning Objective:  03-01 Explore some of the factors within the international trade environment that influence business.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation