Question 1

​The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Accepted Answer

A)  ​the United States.
B)  ​Panama.
C)  ​Colombia.
D)  ​Bolivia.E) A) and B)
F) A) and C)

Question 2

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices. These nations will most likely model the unit after

Accepted Answer

A)  EU.
B)  OPEC.
C)  NAFTA.
D)  ASEAN.
E)  GATT.F) A) and D)
G) A) and E)

Question 3

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

Accepted Answer

A)  Amendments to the General Agreement on Tariffs and Trade
B)  Negotiations sponsored by GATT to reduce trade restrictions
C)  A series of disagreements among the members of GATT
D)  World Trade Organization meetings to encourage trade
E)  Political negotiations among many of the world's nationsF) C) and D)
G) B) and D)

Question 4

Landing Service
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furniture more efficiently than any other company in the nation. In truth, no other companies in any other nation come clos
-Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n)  ____ advantage.

Accepted Answer

A)  total
B)  relative
C)  comparative
D)  proportional
E)  absoluteF) B) and E)
G) A) and B)

Question 5

How do trade restrictions typically affect consumers?

Accepted Answer

Trade restrictions usually impact consum...

Question 6

Which of the following statements is true about NAFTA?

Accepted Answer

A)  It is a free trade agreement between Canada and the United States.
B)  It was initiated by the United States.
C)  It is built on the Canadian Free Trade Agreement (FT
A)  .
D)  It immediately eliminated tariffs among the United States, Mexico, and Canada.
E)  It was enacted in 2002 and encourages free trade.F) D) and E)
G) B) and D)

Question 7

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

Accepted Answer

A)  multinational enterprise.
B)  joint venture.
C)  exporting business.
D)  licensing firm.
E)  none of the above.F) B) and E)
G) A) and E)

Question 8

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Accepted Answer

A)  devalues
B)  increases
C)  balances
D)  decreases
E)  restrictsF) D) and E)
G) A) and B)

Question 9

International business includes all business activities that involve exchanges across state boundaries.

Accepted Answer

A) True 
 B)False

Question 10

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) C) and D)
G) A) and B)

Question 11

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

Accepted Answer

A)  revenue tariff.
B)  preservation tariff.
C)  embargo.
D)  nontariff barrier.
E)  protective tariff.F) A) and B)
G) A) and E)

Question 12

In addition to political considerations, all of the following are reasons for trade restrictions except

Accepted Answer

A)  equalizing a nation's balance of payments.
B)  protecting new and weak industries.
C)  protecting the health of citizens.
D)  protecting national security.
E)  all of the above are reasons for trade restrictions.F) None of the above
G) A) and B)

Question 13

Eleven republics of the former Soviet Union are members of the

Accepted Answer

A)  Former Soviet Republics Trade Agreement.
B)  Organization of Petroleum Exporting Countries.
C)  Association of Asian Nations.
D)  European and Asian Economic Union.
E)  Commonwealth of Independent States.F) None of the above
G) A) and B)

Question 14

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) B) and C)
G) C) and E)

Question 15

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a

Accepted Answer

A)  comparative advantage.
B)  trade deficit.
C)  balance of payments.
D)  negative output.
E)  positive balance of trade.Landing ServiceF) B) and E)
G) C) and D)

Question 16

The United States has enjoyed a trade surplus during the last two decades.

Accepted Answer

A) True 
 B)False

Question 17

A reduction of the value of a nation's currency relative to the currencies of other countries is called

Accepted Answer

A)  a currency devaluation.
B)  a reduced exchange rate.
C)  a deficit money market.
D)  a compressed economy.
E)  none of the above.F) All of the above
G) A) and B)

Question 18

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Accepted Answer

A)  OPEC
B)  IMF
C)  WTO
D)  EEC
E)  LAFTAF) A) and D)
G) A) and C)

Question 19

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Accepted Answer

A)  Licensing
B)  Exporting
C)  Joint venture
D)  Countertrade
E)  Strategic allianceF) C) and E)
G) A) and E)

Question 20

Landing Service
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furniture more efficiently than any other company in the nation. In truth, no other companies in any other nation come clos
-Refer to Landing Service. What type of tax has the Italian government imposed on the company?

Accepted Answer

A)  Export duty
B)  Embargo
C)  Revenue tariff
D)  Protective tariff
E)  Nontariff barrierF) B) and E)
G) C) and E)

Exam 3: Exploring Global Business

How do trade restrictions typically affect consumers?

Correct Answer
verified
Trade restrictions usually impact consum...
View Answer

Correct Answer
verified

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

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

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Correct Answer
verified

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices. These nations will most likely model the unit after

Correct Answer
verified

The United States has enjoyed a trade surplus during the last two decades.

Correct Answer
verified

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Correct Answer
verified

International business includes all business activities that involve exchanges across state boundaries.

Correct Answer
verified

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a

Correct Answer
verified

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

Correct Answer
verified

A reduction of the value of a nation's currency relative to the currencies of other countries is called

Correct Answer
verified

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Correct Answer
verified

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

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

Eleven republics of the former Soviet Union are members of the

Correct Answer
verified

Correct Answer
verified

In addition to political considerations, all of the following are reasons for trade restrictions except

Correct Answer
verified

The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Correct Answer
verified

Which of the following statements is true about NAFTA?

Correct Answer
verified

Exam 3: Exploring Global Business

How do trade restrictions typically affect consumers?

Correct AnswerverifiedTrade restrictions usually impact consum...View AnswerShow Answer

Correct AnswerverifiedShow Answer

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

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

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Correct AnswerverifiedShow Answer

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices. These nations will most likely model the unit after

Correct AnswerverifiedShow Answer

The United States has enjoyed a trade surplus during the last two decades.

Correct AnswerverifiedShow Answer

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Correct AnswerverifiedShow Answer

International business includes all business activities that involve exchanges across state boundaries.

Correct AnswerverifiedShow Answer

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a

Correct AnswerverifiedShow Answer

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

Correct AnswerverifiedShow Answer

A reduction of the value of a nation's currency relative to the currencies of other countries is called

Correct AnswerverifiedShow Answer

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Correct AnswerverifiedShow Answer

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

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

Eleven republics of the former Soviet Union are members of the

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In addition to political considerations, all of the following are reasons for trade restrictions except

Correct AnswerverifiedShow Answer

​The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Correct AnswerverifiedShow Answer

Which of the following statements is true about NAFTA?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Trade restrictions usually impact consum...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Correct Answer
verified

Correct Answer
verified