1- When doing due diligence prior to establishing a development centre in a foreign country where it wants to use local workers, what should be the primary concern of a Canadian electronics firm?

a-availability of skilled labour

b-a low degree of competition

c-a low tariff rate

d-the stability of the local currency

2-How can currency devaluation be an advantage to a country?

a-The debts a country may have incurred are forgiven.

b-It can encourage investing from other countries with higher valued currencies.

c-The country with the devalued currency can import goods for cheaper.

d-The country with devalued currency can exchange for other currencies at a lower rate.

3- A consequence of information being widespread on the Internet is

a- it can limit the number of customers.

b- it can make intellectual property more difficult to protect.

c- it can make products more difficult to market.

d- it can make trade more difficult for companies.

4- Whether a country has _________ largely affects the potential for foreign sales of a particular item.

a-a high per-capita GDP

b-a large population

c- few trade barriers

d- an absolute or comparative advantage

5- Which of the following can be a negative result of a country receiving a World Bank loan?

a- To balance its budget, the country is forced to cut vital social programs.

b-In an effort to build and expand its infrastructure, a nation has to devalue its currency.

c- By accepting a loan, a country is forced to pay it back using precious metals that often are meant for emergencies.

d- By accepting a loan, a country is forced to hand over parts of its governance to the World Bank.

6- Companies will trade with other countries to

a- develop innovative products.

b- minimize operation costs.

c- spread risk.

d-move operations to a cheaper country.

7- Exporters trading with countries with soft currencies might prefer to barter because

a-soft currencies are only accepted regionally.

b-soft currencies are worth less than commodities.

c-soft currencies cannot be readily converted into other currencies.

d-soft currencies can only be traded for other soft currencies.

8-Countries with large populations are attractive to companies because

a-they have cheaper work forces.

b-they have high per-capita incomes.

c-of the sheer size of their markets.

d-domestic demand is high.

9-Which group in a developed country has the most to fear from increasing free trade?

a-trade unions

b-international shipping companies

c-wholesalers

d-corporate shareholders

10-By working to remove farm subsidies in developed countries, the WTO aims to

a-assist the agricultural sector in developing countries.

b-decrease competition between developing and developed countries.

c-allow developing countries to purchase food cheaper.

d-remove tariffs and other barriers to agricultural trade.