Understanding Canadian Business 10Th Canadian Edition By William G Nickels – Test Bank
The Test Bank for Understanding Canadian Business 10th Canadian Edition by William G. Nickels is an essential resource designed to assist instructors in assessing their students’ knowledge and understanding of the fundamental concepts and principles of business in the Canadian context. The textbook, Understanding Canadian Business, provides a comprehensive overview of the Canadian business landscape, including topics such as marketing, accounting, finance, human resources, and operations.
The Test Bank includes a variety of question types, including multiple-choice, true/false, and short answer questions, organized by chapter to correspond with the material covered in the textbook. The questions are designed to test students’ knowledge of key Canadian business concepts and their ability to apply that knowledge to real-world scenarios.
Chapter 03
Competing in Global Markets
True / False Questions
1. Importing is the selling of products to another country.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-01 The Dynamic Global Market
2. Exporting involves the selling of products to another country.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-01 The Dynamic Global Market
3. One reason countries trade with other countries is that even technologically advanced nations cannot produce all the products their people want and need.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-02 Why Trade with Other Nations?
4. Free trade is the movement of goods and services among nations without political or economic barriers.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-02 Why Trade with Other Nations?
5. Global trade includes the exchange of goods and services across national borders.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-02 Why Trade with Other Nations?
6. Absolute advantage is the basis for most global trade.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
7. Comparative advantage theory states that a country should sell to other countries those products that it produces most efficiently and buy from other countries those products it cannot produce as efficiently.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
8. Canada has a comparative advantage in coffee and shoes.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
9. A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
10. Today there are few examples of absolute advantage in global markets.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
11. According to the theory of comparative advantage, a country should buy from other countries those goods it produces most efficiently.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
12. The comparative advantage theory states that all nations should strive to become self-sufficient in order to enjoy the highest standard of living.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
13. The theory of absolute advantage explains most of today’s global trade.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 03-01 Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade.
Topic: 03-03 The Theories of Comparative and Absolute Advantage
14. Flynn Graphics is a small Canadian firm that began selling its products in the global market a few years ago. Flynn’s global approach is unusual, since the trend has been for small firms to focus on domestic markets, leaving global markets to larger firms.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-04 Getting Involved in Global Trade
15. Anything that can be imported into Canada can be sold within Canada.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-05 Importing Goods and Services
16. Exports account for about 5% of Canadian jobs.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Hard
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-06 Exporting Goods and Services
17. Canada in 2009 registered its first favourable balance of trade with the rest of the world.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-07 Measuring Global Trade
18. A favourable balance of trade is also known as a trade surplus.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-07 Measuring Global Trade
19. A favourable balance of trade occurs when the value of a country’s imports exceeds the value of its exports.
FALSE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-07 Measuring Global Trade
20. The balance of payments measures the inflows and outflows of money from tourism, foreign aid, military expenditures and foreign investments as well as flows resulting from exports and imports.
TRUE
Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 03-02 Explain the importance of importing and exporting; and define key terms used in global business.
Topic: 03-07 Measuring Global Trade
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