Question 1

The United States wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

Accepted Answer

A)   import duty.
B)   foreign exchange control.
C)   import quota.
D)   embargo.
E)   export duty.F) B) and E)
G) A) and B)

Question 2

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Accepted Answer

A) True 
 B)False

Question 3

From 1947 to 1994,GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Accepted Answer

A) True 
 B)False

Question 4

If the United States and Japan can't settle their trade disputes on their own,they probably should settle them through the

Accepted Answer

A)   Tokyo Round.
B)   Kennedy Round.
C)   Uruguay Round.
D)   WTO.
E)   United Nations.F) None of the above
G) C) and D)

Question 5

A newly formed country in the Caribbean has no high tariffs,yet other countries find it difficult to trade with the new country because of its requirements for labeling,product testing,and certifications.These restrictions can best be classified as

Accepted Answer

A)   embargos.
B)   currency devaluations.
C)   import quotas.
D)   quality import restrictions.
E)   bureaucratic red tape.F) C) and D)
G) A) and B)

Question 6

Foreign licensing is similar to

Accepted Answer

A)   starting from scratch.
B)   franchising.
C)   wholesaling.
D)   establishing a subsidiary in another country.
E)   establishing a sales office in a foreign country.F) C) and D)
G) A) and B)

Question 7

Who are the top two export partners of the United States?

Accepted Answer

A)   Japan and China
B)   Canada and the United Kingdom
C)   Mexico and Canada
D)   Mexico and China
E)   The United Kingdom and JapanF) A) and D)
G) D) and E)

Question 8

An unfavorable balance of trade occurs when

Accepted Answer

A)   exports are greater than imports.
B)   imports are greater than exports.
C)   the total outflow of money is greater than the total inflow of money.
D)   the total outflow of money is less than the total inflow of money.
E)   exports equal imports.F) A) and B)
G) A) and E)

Question 9

Because Saudi Arabia and Australia have ____,Saudi Arabia can specialize in the production of crude oil and petroleum products,and Australia can specialize in the production of wool.

Accepted Answer

A)   a company advantage
B)   an absolute advantage
C)   a comparative advantage
D)   an effective manufacturing system
E)   very low labor costsF) A) and B)
G) C) and D)

Question 10

One example of an economic community is the organization started by France,Germany,Belgium,Italy,the Netherlands,and Luxembourg.This organization is known as the

Accepted Answer

A)   General Agreement on Tariffs and Trade.
B)   European Economic Area.
C)   European Free Trade Agreement.
D)   European Union.
E)   Euro Economic Alliance.F) A) and E)
G) A) and D)

Question 11

Arguments for imposing trade restrictions include

Accepted Answer

A)   the misallocation of international resources.
B)   equalizing a nation's balance of payments.
C)   higher prices for consumers.
D)   restriction of consumers' choices.
E)   none of these answer choices.F) B) and E)
G) A) and E)

Question 12

Countertrade is losing its importance in international trade.

Accepted Answer

A) True 
 B)False

Question 13

China is selling school supplies in the United States for very low prices,even lower than the prevailing prices in China,and thus making it extremely difficult for American manufacturers to compete.This is referred to as

Accepted Answer

A)   exporting.
B)   importing.
C)   an embargo.
D)   dropping.
E)   dumping.F) B) and D)
G) B) and C)

Question 14

Gerrick has an international business but is having difficulty with currency exchanges and fluctuations in the currency exchange rates.At times the problems are so severe he has considered closing down his international operations and doing business exclusively in the United States.Where can he go for assistance with currency exchange problems?

Accepted Answer

A)   International Monetary Fund
B)   His bank,if it is a large international bank
C)   Export-Import Bank of the United States
D)   A multilateral development bankE) A) and B)
F) A) and C)

Question 15

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 16

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States.After devaluation,the set of china costs $1,000.This change

Accepted Answer

A)   shows that to foreigner purchasers,the price of the china is the same before and after the devaluation.
B)   makes the china less attractive to foreigner purchasers.
C)   makes the china more attractive to foreign purchasers.
D)   is irrelevant to foreign purchasers.
E)   proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way,they could get even more for their dollars.F) A) and D)
G) D) and E)

Question 17

What is the General Agreement on Tariffs and Trade (GATT)? What is its primary objective?

Accepted Answer

The General Agreement on Tariffs and Tra...

Question 18

A medium-sized hardware manufacturer wants to become deeply involved in exporting,but it does not yet wish to actually manufacture any of its products overseas.The company wants to maintain control over its sales while gaining experience in foreign markets.Which option would be best for this company?

Accepted Answer

A)   Licensing its products for sale in foreign countries
B)   Selling its products outright to an export/import merchant
C)   Establishing its own sales offices in foreign countries
D)   Developing totally owned facilities in a foreign market
E)   Hiring an export/import agent to assist with foreign salesF) A) and B)
G) None of the above

Question 19

____ is the ability to produce a specific product more efficiently than any other product.

Accepted Answer

A)   Absolute advantage
B)   Specialization
C)   Relative advantage
D)   Dominant advantage
E)   Comparative advantageF) B) and E)
G) C) and D)

Question 20

Germany is experiencing balance-of-payment deficits and needs a short-term loan.It will most likely turn to _____ for the loan.

Accepted Answer

A)   ​the International Monetary Fund.
B)   ​the European Bank for Reconstruction and Development.
C)   ​the World Bank.
D)   ​the Federal Reserve Bank.E) C) and D)
F) All of the above

Exam 3: Global Business

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

Correct Answer
verified

Countertrade is losing its importance in international trade.

Correct Answer
verified

____ is the ability to produce a specific product more efficiently than any other product.

Correct Answer
verified

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Correct Answer
verified

Because Saudi Arabia and Australia have ____,Saudi Arabia can specialize in the production of crude oil and petroleum products,and Australia can specialize in the production of wool.

Correct Answer
verified

China is selling school supplies in the United States for very low prices,even lower than the prevailing prices in China,and thus making it extremely difficult for American manufacturers to compete.This is referred to as

Correct Answer
verified

Arguments for imposing trade restrictions include

Correct Answer
verified

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States.After devaluation,the set of china costs $1,000.This change

Correct Answer
verified

From 1947 to 1994,GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Correct Answer
verified

Who are the top two export partners of the United States?

Correct Answer
verified

One example of an economic community is the organization started by France,Germany,Belgium,Italy,the Netherlands,and Luxembourg.This organization is known as the

Correct Answer
verified

A newly formed country in the Caribbean has no high tariffs,yet other countries find it difficult to trade with the new country because of its requirements for labeling,product testing,and certifications.These restrictions can best be classified as

Correct Answer
verified

What is the General Agreement on Tariffs and Trade (GATT)? What is its primary objective?

Correct Answer
verified
The General Agreement on Tariffs and Tra...
View Answer

The United States wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

Correct Answer
verified

Correct Answer
verified

Foreign licensing is similar to

Correct Answer
verified

An unfavorable balance of trade occurs when

Correct Answer
verified

If the United States and Japan can't settle their trade disputes on their own,they probably should settle them through the

Correct Answer
verified

Correct Answer
verified

Germany is experiencing balance-of-payment deficits and needs a short-term loan.It will most likely turn to _____ for the loan.

Correct Answer
verified

Exam 3: Global Business

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

Correct AnswerverifiedShow Answer

Countertrade is losing its importance in international trade.

Correct AnswerverifiedShow Answer

____ is the ability to produce a specific product more efficiently than any other product.

Correct AnswerverifiedShow Answer

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Correct AnswerverifiedShow Answer

Because Saudi Arabia and Australia have ____,Saudi Arabia can specialize in the production of crude oil and petroleum products,and Australia can specialize in the production of wool.

Correct AnswerverifiedShow Answer

China is selling school supplies in the United States for very low prices,even lower than the prevailing prices in China,and thus making it extremely difficult for American manufacturers to compete.This is referred to as

Correct AnswerverifiedShow Answer

Arguments for imposing trade restrictions include

Correct AnswerverifiedShow Answer

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States.After devaluation,the set of china costs $1,000.This change

Correct AnswerverifiedShow Answer

From 1947 to 1994,GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Correct AnswerverifiedShow Answer

Who are the top two export partners of the United States?

Correct AnswerverifiedShow Answer

One example of an economic community is the organization started by France,Germany,Belgium,Italy,the Netherlands,and Luxembourg.This organization is known as the

Correct AnswerverifiedShow Answer

A newly formed country in the Caribbean has no high tariffs,yet other countries find it difficult to trade with the new country because of its requirements for labeling,product testing,and certifications.These restrictions can best be classified as

Correct AnswerverifiedShow Answer

What is the General Agreement on Tariffs and Trade (GATT)? What is its primary objective?

Correct AnswerverifiedThe General Agreement on Tariffs and Tra...View AnswerShow Answer

The United States wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Foreign licensing is similar to

Correct AnswerverifiedShow Answer

An unfavorable balance of trade occurs when

Correct AnswerverifiedShow Answer

If the United States and Japan can't settle their trade disputes on their own,they probably should settle them through the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Germany is experiencing balance-of-payment deficits and needs a short-term loan.It will most likely turn to _____ for the loan.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
The General Agreement on Tariffs and Tra...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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