Cultural Issues Affecting International Trade/Assessment

Assessment
1. As you develop your international business, your ability to collect payment in a timely manner can be affected by the
 * 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
 * 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
 * a. bribes (grease payments).
 * b. corporate taxes.
 * c. high duty rates.
 * d. high interest rates.

4. Cultural restrictions within a country may limit businesses
 * 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.