A+ Answers of the following Questions

Question 1         
There are a lot of companies that make decorative items for the home. Franklin Mint makes decorative gift items that it sells as collectibles. For instance, each decorator plate that it markets is given a number, and only a finite quantity of each plate is manufactured. By use of a(n) __________ strategy, Franklin Mint distinguishes itself from other companies that make decorative items for the home.
A. related diversification
B. focus
C. BCG
D. diversification

Question 2         
__________ is a useful framework for managers to use as they plot business strategy over time.
A. Portfolio approach
B. Product life cycle
C. Environmental SWOT analysis
D. Porter model

Question 3         
Tide laundry detergent, manufactured by Proctor & Gamble, is the number-one selling detergent in the United States, although sales volume has been flat for years. In the U.S., in what stage of the product life is Tide laundry detergent?
A. Growth
B. Decline
C. Focus
D. Maturity

Question 1         
Which of the following is an advantage of unrelated diversification?
A. Stable financial performance over time
B. Reduced overhead costs

C. Specific, detailed knowledge about each individual SBU
D. Synergy

Question 2         
__________ is a useful framework for managers to use as they plot business strategy over time.
A. Portfolio approach
B. Product life cycle
C. Environmental SWOT analysis
D. Porter model

Question 3         
Strategic goals are set by:
A. first-line managers.
B. middle managers.
C. top managers.
D. stockholders.

Question 1         
The principle of comparative advantage:
A. applies only when the gold standard is in effect.
B. is the basic reason that the United States has been running trade deficits.
C. states that it is advantageous to export more than you import.
D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.

Question 2         
At the core of the American trade problem is that:
A. Americans spend too much on consumption.
B. the dollar is too low
C. the Japanese are excluding American products by means of high protective tariffs.
D. American manufacturers are too quality conscious and should instead concentrate on reducing costs.

Question 3         
High protective tariffs:
A. would be supported by most economists.
B. will become more likely if we do not reduce our trade deficit.
C. have very little support.
D. would definitely solve all our trade problems.

Question 1         
A hollow corporation:
A. makes goods abroad and ships them to the United States.
B. makes goods in the United States and ships them abroad.
C. imports foreign goods and puts its own name on them.
D. makes goods in the United States and has them sold abroad under another company's name.

Question 2         
Which statement is true?
A. The Japanese have not been selling below cost nor taking advantage of economies of scale.
B. The Japanese have been selling below cost and have been taking advantage of economies of scale.
C. The Japanese have been selling below cost but have not been taking advantage of economies of scale.
D. The Japanese have been taking advantage of economies of scale but have not been selling below cost.

Question 3         
The Chinese economic expansion since the early 1980s and the Japanese economic expansion from the late 1940s through the 1980s were:
A. virtually identical.
B. both dependent on the American market.
C. based in the economic principles of Karl Marx.
D. based on closing their domestic markets to American goods and services.

Question 1         
The least applicable argument for protection of U.S. industry against foreign competition is the __________ argument.
A. national security
B. infant industry
C. low wage
D. employment

Question 2         
A balance-of-trade surplus exists:
A. if the dollar value of exports exceeds the dollar value of imports.
B. if the dollar value of imported capital exceeds the dollar value of exports.
C. only if there is relative price inflation domestically.
D. only if full employment exists domestically.

Question 3         
Which statement is FALSE?
A. Chinese factories have been pirating American goods and selling those products in China.
B. Most often "made in China" is actually made elsewhere by multinational companies that use China as a final assembly station.
C. Both China and Japan have closed markets to American made products.
D. Our trading position with Japan is very much like a colony and a colonial power.