Question 1

​Those who criticize NAFTA say that it has not achieved its goals and all of the following except

Accepted Answer

A)   ​it advances technology.
B)   ​has resulted in job losses.
C)   ​does nothing to help the environment.
D)   ​hurts the agricultural sector.E) B) and C)
F) A) and C)

Question 2

Suppose Brazil,Argentina,Columbia,Peru,and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

Accepted Answer

A)   world trade organization.
B)   peace agreement.
C)   economic community.
D)   free trade agreement.
E)   global marketplace.F) A) and B)
G) A) and D)

Question 3

Cultural barriers can impede acceptance of products in foreign countries.

Accepted Answer

A) True 
 B)False

Question 4

​If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

Accepted Answer

A)   ​Asian Development Bank.
B)   ​World Bank.
C)   ​International Monetary Fund.
D)   ​United Nations.E) A) and B)
F) None of the above

Question 5

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Accepted Answer

A) True 
 B)False

Question 6

If Japan were regarded as the best electronics manufacturer in the world,what would be true?

Accepted Answer

A)   Japan would have a comparative advantage in electronics manufacturing.
B)   Japan would have a positive balance of trade.
C)   The United States would have a comparative advantage in electronics.
D)   Japan would have an absolute advantage in electronics production.
E)   Japan would have a trade deficit with the United States.F) A) and D)
G) None of the above

Question 7

A tariff is a tax levied on a particular foreign product entering a country.

Accepted Answer

A) True 
 B)False

Question 8

Allen Lee,a Chinese immigrant,would like to start a wholesale furniture business in the United States.He has contacts in the furniture production business in China and feels he can leverage these contacts to purchase inexpensive,high-quality furniture to sell in his stores in the United States.He calls one of his contacts and after extensive negotiation,makes a deal: he will buy the Chinese furniture to sell wholesale in the United States to retail furniture businesses.What is the business relationship between Allen and his Chinese contact?

Accepted Answer

A)   Allen is the licensee and the contact is the licensor.
B)   Allen is an importer and the contact is an exporter.
C)   Allen and his contact have a joint venture.
D)   Allen and his contact have a strategic alliance.E) All of the above
F) C) and D)

Question 9

Arguments for the government imposing restrictions on foreign trade include

Accepted Answer

A)   the loss of jobs in foreign countries.
B)   advancing technology will harm the country's economy.
C)   restriction of consumers' choices.
D)   protection of the health of its citizens.
E)   helping the foreign country become more competitive.F) A) and B)
G) C) and D)

Question 10

Totally owned facilities overseas are an example of

Accepted Answer

A)   indirect investment.
B)   direct investment.
C)   roundabout investment.
D)   licensing.
E)   joint venture.F) A) and C)
G) B) and E)

Question 11

Least-favored-nation (LFN)status was the famous principle of GATT.

Accepted Answer

A) True 
 B)False

Question 12

Countertrade is an international barter transaction in which

Accepted Answer

A)   goods and services are exchanged for different goods and services.
B)   one company sells goods and services under the counter.
C)   the buyers and sellers trade illegally.
D)   one company manufactures and the other company owns the assets.
E)   none of these answer choices are correct.F) A) and E)
G) A) and B)

Question 13

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Accepted Answer

A) True 
 B)False

Question 14

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Accepted Answer

A) True 
 B)False

Question 15

The World Trade Organization (WTO)was established by GATT to oversee the provisions of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 16

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Accepted Answer

A) True 
 B)False

Question 17

If a country imports more than it exports,its balance of trade is said to be favorable.

Accepted Answer

A) True 
 B)False

Question 18

Which is the largest emerging Asian market?

Accepted Answer

A)   Japan
B)   Indonesia
C)   Korea
D)   Malaysia
E)   ChinaF) A) and D)
G) A) and C)

Question 19

Although it lacks sources of timber and oil,Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

Accepted Answer

A)   It has a comparative advantage in wine production.
B)   It has a comparative advantage in timber and oil production.
C)   It has an absolute advantage in the production of wine.
D)   It has an absolute advantage in timber and oil production.
E)   It has no comparative or absolute advantages.F) A) and B)
G) C) and E)

Question 20

Godfrey would like to start a business that will eventually have trade with another.He would like the trade partner to be an Asian country but would like it to be a democracy with great economic growth potential,and a large population of potential consumers.Which nation would most likely be his trading partner?

Accepted Answer

A)   India
B)   China
C)   Japan
D)   ThailandE) All of the above
F) C) and D)

Exam 3: Global Business

Least-favored-nation (LFN)status was the famous principle of GATT.

Correct Answer
verified

A tariff is a tax levied on a particular foreign product entering a country.

Correct Answer
verified

Countertrade is an international barter transaction in which

Correct Answer
verified

Totally owned facilities overseas are an example of

Correct Answer
verified

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Correct Answer
verified

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Correct Answer
verified

Those who criticize NAFTA say that it has not achieved its goals and all of the following except

Correct Answer
verified

If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

Correct Answer
verified

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Correct Answer
verified

Arguments for the government imposing restrictions on foreign trade include

Correct Answer
verified

If a country imports more than it exports,its balance of trade is said to be favorable.

Correct Answer
verified

The World Trade Organization (WTO)was established by GATT to oversee the provisions of the Uruguay Round.

Correct Answer
verified

Which is the largest emerging Asian market?

Correct Answer
verified

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Correct Answer
verified

Correct Answer
verified

If Japan were regarded as the best electronics manufacturer in the world,what would be true?

Correct Answer
verified

Cultural barriers can impede acceptance of products in foreign countries.

Correct Answer
verified

Correct Answer
verified

Although it lacks sources of timber and oil,Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

Correct Answer
verified

Suppose Brazil,Argentina,Columbia,Peru,and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

Correct Answer
verified

Exam 3: Global Business

Least-favored-nation (LFN)status was the famous principle of GATT.

Correct AnswerverifiedShow Answer

A tariff is a tax levied on a particular foreign product entering a country.

Correct AnswerverifiedShow Answer

Countertrade is an international barter transaction in which

Correct AnswerverifiedShow Answer

Totally owned facilities overseas are an example of

Correct AnswerverifiedShow Answer

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Correct AnswerverifiedShow Answer

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Correct AnswerverifiedShow Answer

​Those who criticize NAFTA say that it has not achieved its goals and all of the following except

Correct AnswerverifiedShow Answer

​If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

Correct AnswerverifiedShow Answer

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Correct AnswerverifiedShow Answer

Arguments for the government imposing restrictions on foreign trade include

Correct AnswerverifiedShow Answer

If a country imports more than it exports,its balance of trade is said to be favorable.

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO)was established by GATT to oversee the provisions of the Uruguay Round.

Correct AnswerverifiedShow Answer

Which is the largest emerging Asian market?

Correct AnswerverifiedShow Answer

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If Japan were regarded as the best electronics manufacturer in the world,what would be true?

Correct AnswerverifiedShow Answer

Cultural barriers can impede acceptance of products in foreign countries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Although it lacks sources of timber and oil,Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

Correct AnswerverifiedShow Answer

Suppose Brazil,Argentina,Columbia,Peru,and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

Correct AnswerverifiedShow Answer

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Those who criticize NAFTA say that it has not achieved its goals and all of the following except

Correct Answer
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If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

Correct Answer
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Correct Answer
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