Question 1

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 close.Landing Service has shipped many of its products internationally.In fact, 80 percent of its profits come from international sales.However, the Italian government has imposed a tax on imported furniture items to protect local companies.The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out.However, after Landing Service contacted the organisation that had the power to mediate this situation, the furniture company realised that the taxation it was subjected to was legal and that there was nothing it could do about it.
-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 C)
G) A) and E)

Question 2

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.The United States thus engages in

Accepted Answer

A)   dumping.
B)   tariffing.
C)   importing.
D)   exporting.
E)   deficit trading.F) B) and C)
G) C) and E)

Question 3

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A)   embargo.
B)   stoppage.
C)   stay.
D)   closure.
E)   barricade.F) None of the above
G) B) and E)

Question 4

The Tokyo Round

Accepted Answer

A)   was completed in 1947.
B)   resulted in 50 percent tariff cuts.
C)   was implemented over a fifteen-year period.
D)   increased nontariff barriers.
E)   eased import quotas and unrealistic quality standards for imports.F) D) and E)
G) A) and B)

Question 5

Because Saudi Arabia and Australia have ____, Saudi Arabia can specialise in the production of crude oil and petroleum products, and Australia can specialise 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) A) and C)

Question 6

The total flow of money into a country less the total flow of money out of the country over some period of time is called the nation's balance of trade.

Accepted Answer

A) True 
 B)False

Question 7

Another name for an import duty is a(n)

Accepted Answer

A)   tariff.
B)   embargo.
C)   devaluation.
D)   quota.
E)   limitation.F) A) and C)
G) None of the above

Question 8

How has international trade changed since the end of World War II?

Accepted Answer

A)   Trade across national borders has decreased since its peak during the early to mid-1900s.
B)   International trade has increased steadily since this period of time.
C)   The amount of international trading has remained relatively stable since this time.
D)   International trade has become completely unrestricted.
E)   International trading has become much more heavily regulated and restricted by all countries.F) A) and B)
G) B) and E)

Question 9

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Accepted Answer

A)   an overall favourable balance of trade.
B)   an overall unfavourable balance of trade.
C)   a favourable balance of trade with Jamaica.
D)   neither a favourable nor an unfavourable balance of trade with Jamaica.
E)   an unfavourable balance of trade with Jamaica.F) C) and D)
G) A) and B)

Question 10

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 11

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties.This action is called a(n)

Accepted Answer

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

Question 12

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

Accepted Answer

A)   Licence
B)   letter of credit
C)   bill of lading
D)   Draft
E)   voucherF) A) and B)
G) D) and E)

Question 13

Arguments for imposing trade restrictions include

Accepted Answer

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

Question 14

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following Asian countries has the leading economic growth?

Accepted Answer

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Eleven republics of the former Soviet Union are members of the

Accepted Answer

A)   Former Soviet Republics Trade Agreement.
B)   Organisation of Petroleum Exporting Countries.
C)   Association of Asian Nations.
D)   European and Asian Economic Union.
E)   Commonwealth of Independent States.F) A) and E)
G) C) and D)

Question 18

The UK 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) All of the above
G) A) and E)

Question 19

ABC Company wants to be prepared for the ASEAN free trade area.The company plans to develop its own production and marketing facilities in one or more ASEAN countries.The best choice for ABC Company is

Accepted Answer

A)   a joint venture.
B)   a licensing agreement.
C)   totally owned facilities.
D)   exporting.
E)   sales offices.F) A) and E)
G) C) and D)

Question 20

Foreign licencing 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) None of the above
G) All of the above

Exam 3: Global Business

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

Correct Answer
verified

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Correct Answer
verified

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct Answer
verified

Correct Answer
verified

The Tokyo Round

Correct Answer
verified

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.The United States thus engages in

Correct Answer
verified

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

Correct Answer
verified

Arguments for imposing trade restrictions include

Correct Answer
verified

The UK 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

ABC Company wants to be prepared for the ASEAN free trade area.The company plans to develop its own production and marketing facilities in one or more ASEAN countries.The best choice for ABC Company is

Correct Answer
verified

Another name for an import duty is a(n)

Correct Answer
verified

How has international trade changed since the end of World War II?

Correct Answer
verified

Eleven republics of the former Soviet Union are members of the

Correct Answer
verified

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties.This action is called a(n)

Correct Answer
verified

The total flow of money into a country less the total flow of money out of the country over some period of time is called the nation's balance of trade.

Correct Answer
verified

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Correct Answer
verified

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct Answer
verified

Which of the following Asian countries has the leading economic growth?

Correct Answer
verified

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

Correct Answer
verified

Foreign licencing is similar to

Correct Answer
verified

Exam 3: Global Business

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

Correct AnswerverifiedShow Answer

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Correct AnswerverifiedShow Answer

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Tokyo Round

Correct AnswerverifiedShow Answer

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.The United States thus engages in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Arguments for imposing trade restrictions include

Correct AnswerverifiedShow Answer

The UK 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

ABC Company wants to be prepared for the ASEAN free trade area.The company plans to develop its own production and marketing facilities in one or more ASEAN countries.The best choice for ABC Company is

Correct AnswerverifiedShow Answer

Another name for an import duty is a(n)

Correct AnswerverifiedShow Answer

How has international trade changed since the end of World War II?

Correct AnswerverifiedShow Answer

Eleven republics of the former Soviet Union are members of the

Correct AnswerverifiedShow Answer

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties.This action is called a(n)

Correct AnswerverifiedShow Answer

The total flow of money into a country less the total flow of money out of the country over some period of time is called the nation's balance of trade.

Correct AnswerverifiedShow Answer

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Correct AnswerverifiedShow Answer

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct AnswerverifiedShow Answer

Which of the following Asian countries has the leading economic growth?

Correct AnswerverifiedShow Answer

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

Correct AnswerverifiedShow Answer

Foreign licencing is similar to

Correct AnswerverifiedShow Answer

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