Question 1

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.

Accepted Answer

A) True 
 B)False

Question 2

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Accepted Answer

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

Question 3

The UK wants to limit the amount of sterling that another country can obtain.The best way to accomplish this is to

Accepted Answer

A)   impose an import duty.
B)   establish a foreign-exchange control.
C)   declare an embargo.
D)   set an import quota.
E)   impose an export duty.F) None of the above
G) B) and C)

Question 4

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

Question 5

When an Indian importing firm wants to import U.K.-made products, it must first secure permission and money from the Reserve Bank of India.This type of restriction is known as a

Accepted Answer

A)   currency devaluation.
B)   foreign-exchange control.
C)   negative foreign exchange.
D)   trade embargo.
E)   quota.F) A) and B)
G) B) and E)

Question 6

Ben Schumpert decides his company will start exporting and he wants to start at the most basic level.What action should Ben take to meet his objectives?

Accepted Answer

A)   Licence the company's brand name and products to foreign manufacturers.
B)   Contact Sears World Trade to find foreign consumers.
C)   Open new facilities around the world.
D)   Form a joint venture with a complementary company in a foreign country.
E)   Sell the company's products to an export-import merchant.F) C) and D)
G) A) and B)

Question 7

Nordstrom sells designer suits made in Italy in its stores in the UK.Nordstrom is ____ suits.

Accepted Answer

A)   Exporting
B)   Importing
C)   Trading
D)   Dumping
E)   TaxingF) B) and E)
G) A) and E)

Question 8

UK automakers are concerned about the availability of so many foreign cars to their consumers, and that their chances to sell their own cars are limited.To directly correct the situation, they encourage Congress to impose a(n)

Accepted Answer

A)   export quota.
B)   export duty.
C)   import quota.
D)   tariff.
E)   import duty.F) A) and D)
G) A) and E)

Question 9

What types of products did GATT focus on during the Kennedy Round?

Accepted Answer

A)   Business services and textiles
B)   Agricultural products and textiles
C)   Industrial products and business services
D)   Industrial and agricultural products
E)   Textiles and intellectual property rightsF) A) and C)
G) None of the above

Question 10

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Accepted Answer

A) True 
 B)False

Question 11

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A)   They will be faced with the highest demand ever.
B)   They will become more competitive.
C)   They will be put out of business because they cannot compete with the prices.
D)   They will try to dump their toys in other countries.
E)   Their revenues will decrease, but their long-term success will not be affected.F) B) and C)
G) A) and B)

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A favourable balance of payments means that

Accepted Answer

A)   exports exceed imports.
B)   imports exceed exports.
C)   payments exceed trade.
D)   exports and other payments exceed imports and other receipts.
E)   total receipts exceed total payments.F) A) and D)
G) C) and D)

Question 14

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

Accepted Answer

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

Question 15

Which of the following best describes the Organisation of Petroleum Exploring Countries?

Accepted Answer

A)   Collective bargaining unit
B)   Monopoly
C)   Trading company
D)   Joint venture
E)   Strategic allianceF) A) and B)
G) All of the above

Question 16

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty.This is known as

Accepted Answer

A)   exporting.
B)   licensing.
C)   direct investment.
D)   manufacturing in foreign countries.
E)   none of the above.F) B) and C)
G) B) and E)

Question 17

Which of the following scenarios would not be considered international business?

Accepted Answer

A)   A Chinese manufacturer sells toys to a large toy retailer in the United States.
B)   Intel sells its processors to a computer manufacturer in Korea.
C)   A large jewelry store in England purchases its diamonds from DeBeers in South Africa.
D)   A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky.
E)   French companies purchase crude oil from Saudi Arabia.F) A) and D)
G) B) and D)

Question 18

China is trying to develop its international trade in electronic components, but it lacks the money to be successful.From whom should China seek assistance?

Accepted Answer

A)   The International Monetary Fund
B)   The Ex-Im Bank
C)   The United States
D)   The Federal Reserve
E)   The Export-Import Bank of the United StatesF) B) and C)
G) None of the above

Question 19

The primary objective of the World Trade Organisation is to

Accepted Answer

A)   help underdeveloped nations increase their standard of living.
B)   achieve world peace.
C)   remove barriers to trade worldwide.
D)   enforce worldwide political and trade regulations.
E)   promote the invention of new technologies.F) C) and D)
G) A) and E)

Question 20

If Procter & Gamble, a Dutch leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a disinfectant line of ecologically friendly laundry detergent, the partnership would be a(n)

Accepted Answer

A)   corporation.
B)   joint venture.
C)   monopoly.
D)   licensing agreement.
E)   international alliance.F) A) and B)
G) C) and D)

Exam 3: Global Business

The UK wants to limit the amount of sterling that another country can obtain.The best way to accomplish this is to

Correct AnswerverifiedShow Answer

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Correct AnswerverifiedShow Answer

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty.This is known as

Correct AnswerverifiedShow Answer

A favourable balance of payments means that

Correct AnswerverifiedShow Answer

Which of the following best describes the Organisation of Petroleum Exploring Countries?

Correct AnswerverifiedShow Answer

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.

Correct AnswerverifiedShow Answer

When an Indian importing firm wants to import U.K.-made products, it must first secure permission and money from the Reserve Bank of India.This type of restriction is known as a

Correct AnswerverifiedShow Answer

Ben Schumpert decides his company will start exporting and he wants to start at the most basic level.What action should Ben take to meet his objectives?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Nordstrom sells designer suits made in Italy in its stores in the UK.Nordstrom is ____ suits.

Correct AnswerverifiedShow Answer

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Correct AnswerverifiedShow Answer

What types of products did GATT focus on during the Kennedy Round?

Correct AnswerverifiedShow Answer

UK automakers are concerned about the availability of so many foreign cars to their consumers, and that their chances to sell their own cars are limited.To directly correct the situation, they encourage Congress to impose a(n)

Correct AnswerverifiedShow Answer

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Correct AnswerverifiedShow Answer

The primary objective of the World Trade Organisation is to

Correct AnswerverifiedShow Answer

China is trying to develop its international trade in electronic components, but it lacks the money to be successful.From whom should China seek assistance?

Correct AnswerverifiedShow Answer

Which of the following scenarios would not be considered international business?

Correct AnswerverifiedShow Answer

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

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

If Procter & Gamble, a Dutch leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a disinfectant line of ecologically friendly laundry detergent, the partnership would be a(n)

Correct AnswerverifiedShow Answer

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