Cultural Issues Affecting International Trade/Assessment
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Unit 1.2-Cultural Issues Affecting International Trade |
Introduction | Culture Defined | Culture Applied | Summary | Resources | Activities | Assessment
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[edit] Assessment
1. As you develop your international business, your ability to collect payment in a timely manner can be affected by the
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- a. weather in the country.
- b. contract that was signed.
- c. culture of the country.
- d. demand for the product that is sold.
2. Due to the unlimited variables that may affect an international business transaction, the most important foundation to establish is a
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- a. complete understanding of the legal system in which you will conduct business.
- b. thorough understanding of the religions present in a country.
- c. complete understanding of the language of a country.
- d. strong relationship with your business associates abroad.
3. In a country where the level of corruption is very high, it is likely that an international manager will be required to pay
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- a. bribes (grease payments).
- b. corporate taxes.
- c. high duty rates.
- d. high interest rates.
4. Cultural restrictions within a country may limit businesses
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- a. to selling a limited quantity of products during the year.
- b. from utilizing financial and foreign exchange tools.
- c. from completely understanding the legal system in which you will conduct business.
- d. from thoroughly understanding the religions present in a country.
(Correct answers: 1=c, 2=d, 3=a, 4=b.)
