Free trade zones in China
a. attracted 60 billion in investments.
b. are always export processing zones.
c. encourage nonautomatic import licensing
d. all of the above
Question 2Buying a party's position in a countertrade in exchange for hard currency and selling it to another customer is known as a(n)
a. Counterpurchase c. Switch trade
b. Offset purchase d. Buyback agreement
Question 3Shine&Lime Inc has introduced a new sponge that has an antimicrobial polymer designed to kill bacteria and germs and reduce the odors associated with wet sponges. This is best thought of as an example of a _____.
A) dynamically discontinuous innovation
B) continuous innovation
C) dynamically continuous innovation
D) discontinuous innovation
E) hedonic innovation
Question 4A maquiladora is an example of a(n)
a. black market. c. development bank.
b. customs-privileged facility. d. nonautomatic import license.
Question 5In a clearing agreement, when an imbalance occurs and one country owes money to the other, ____ are paid in an agreed upon hard currency.
a. countervailing credits c. switch credits
b. swing credits d. clearing credits
Question 6Which of the following is true of a continuous innovation?
A) It has the ability to convey meaning about a consumer's reference group.
B) It has a limited effect on existing consumption patterns.
C) It has a pronounced effect on our consumption practices.
D) It has the potential to start a new product category.
E) It has old associations but a new name.
Question 7A foreign trade zone
a. always increases the prices for goods sold in the importing country.
b. raises the insurance expense for a company.
c. may promote a favorable country-of-origin effect.
d. typically creates entry barriers for foreign firms.
Question 8Which type of countertrade is the only type of exchange that does not involve monetary exchange?
a. Barter c. Switch Trading
b. Clearing Agreements d. Counterpurchase
Question 9Trackanddeliver.com is an online retail store that does not require a fixed delivery location and delivers goods to the current location of the customer by tracking the customer's cell phone location. This way customers need not be at home when a package arrives nor have the package delivered to a neighbor. In this scenario, Trackanddeliver.com is considered as a _____.
A) symbolic innovation
B) discontinuous innovation
C) radical innovation
D) hedonic innovation
E) functional innovation
Question 10In the United States, which entity regulates foreign trade zones?
a. The Export-Import Bank c. The Food and Drug Administration
b. The Federal Trade Commission d. The Department of Commerce
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