Cultural Issues Affecting International Trade/Assessment

Unit 1.2-Cultural Issues Affecting International Trade

Introduction | Culture Defined | Culture Applied | Summary | Resources | Activities | Assessment Go to Unit 1.1 | Unit 1.2 | Unit 1.3 Return to Trade Finance Module 1: Political and Economic Risk

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.

(Correct answers: 1=c, 2=d, 3=a, 4=b.)