Question 1

A(n)  ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Accepted Answer

A)   export-import merchant
B)   international bank
C)   joint venture
D)   export-import agent
E)   trading brokerF) A) and B)
G) A) and C)

Question 2

All of the following are reasons against having trade restrictions except

Accepted Answer

A)   the loss of jobs.
B)   the misallocation of international resources.
C)   the restriction of consumers' choices.
D)   higher prices for consumers.
E)   the protection of the health of citizens.F) A) and C)
G) A) and E)

Question 3

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. Their comments are based on the

Accepted Answer

A)   infant-industry argument.
B)   goal of equalizing the nation's balance of payments.
C)   national self-sufficiency argument.
D)   goal of protecting the health of citizens.
E)   goals of retaliating for another nation's trade restrictions.F) A) and B)
G) A) and D)

Question 4

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

Accepted Answer

A)   license
B)   letter of credit
C)   bill of lading
D)   draft
E)   voucherF) A) and E)
G) C) and D)

Question 5

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) A) and E)
G) A) and C)

Question 6

What is countertrade? Give examples of companies that are engaged in it.

Accepted Answer

Countertrade refers to a variety of trad...

Question 7

What are the major sources of export assistance from the federal government?

Accepted Answer

The federal government of the United Sta...

Question 8

Purchasing products or materials in other nations and bringing them into one's own country is

Accepted Answer

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

Question 9

Another name for an import duty is a(n)

Accepted Answer

A)   tariff.
B)   embargo.
C)   devaluation.
D)   quota.
E)   limitation.F) A) and B)
G) D) and E)

Question 10

How do trade restrictions affect consumers, workers, and the domestic producers of restricted goods?

Accepted Answer

Trade restrictions can have various effe...

Question 11

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Accepted Answer

A)   trading company
B)   strategic alliance
C)   licensing company
D)   countertrade agreement
E)   joint ventureF) None of the above
G) B) and D)

Question 12

When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n)

Accepted Answer

A)   quota.
B)   devaluation.
C)   tariff.
D)   duty.
E)   embargo.F) C) and D)
G) A) and D)

Question 13

When a business has plants located in several foreign countries, 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) A) and B)
G) B) and C)

Question 14

Balance of payments is a ____ concept than balance of trade.

Accepted Answer

A)   more difficult
B)   less difficult
C)   nearly identical
D)   broader
E)   narrowerF) B) and E)
G) A) and D)

Question 15

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Accepted Answer

A)   exporting.
B)   shipping.
C)   importing.
D)   expelling.
E)   dumping.F) A) and B)
G) C) and E)

Question 16

How was the World Trade Organization (WTO) created? Why was it established?

Accepted Answer

The World Trade Organization (WTO) was c...

Question 17

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

Question 18

What are different methods of entering international markets? Which methods require the least and the most degree of involvement in international business?

Accepted Answer

Companies can enter international market...

Question 19

Which of the following best defines balance of trade?

Accepted Answer

A)   Purchasing products in other countries and bringing them into one's own country
B)   The total value of a nation's exports minus the total value of its imports over some period of time
C)   The total flow of money into the country minus the total flow of money out of the country over some period of time
D)   The ability to specialize in the production of a specific product and trade it for other needed products
E)   The ability to produce a certain product more efficiently than any other nationF) A) and B)
G) A) and C)

Question 20

What is the difference between an absolute advantage and a comparative advantage?

Accepted Answer

Absolute advantage and comparative advan...

Exam 3: A: Exploring Global Business

Purchasing products or materials in other nations and bringing them into one's own country is

Correct AnswerverifiedShow Answer

Which of the following best defines balance of trade?

Correct AnswerverifiedShow Answer

What is countertrade? Give examples of companies that are engaged in it.

Correct AnswerAnswered by ExamLex AICountertrade refers to a variety of trad...View AnswerShow Answer

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. Their comments are based on the

Correct AnswerverifiedShow Answer

What is the difference between an absolute advantage and a comparative advantage?

Correct AnswerAnswered by ExamLex AIAbsolute advantage and comparative advan...View AnswerShow Answer

How was the World Trade Organization (WTO) created? Why was it established?

Correct AnswerAnswered by ExamLex AIThe World Trade Organization (WTO) was c...View AnswerShow Answer

When a business has plants located in several foreign countries, it is called a(n)

Correct AnswerverifiedShow Answer

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Correct AnswerverifiedShow Answer

When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n)

Correct AnswerverifiedShow Answer

Foreign licensing is similar to

Correct AnswerverifiedShow Answer

What are the major sources of export assistance from the federal government?

Correct AnswerAnswered by ExamLex AIThe federal government of the United Sta...View AnswerShow Answer

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Correct AnswerverifiedShow Answer

Another name for an import duty is a(n)

Correct AnswerverifiedShow Answer

All of the following are reasons against having trade restrictions except

Correct AnswerverifiedShow Answer

How do trade restrictions affect consumers, workers, and the domestic producers of restricted goods?

Correct AnswerAnswered by ExamLex AITrade restrictions can have various effe...View AnswerShow Answer

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Balance of payments is a ____ concept than balance of trade.

Correct AnswerverifiedShow Answer

What are different methods of entering international markets? Which methods require the least and the most degree of involvement in international business?

Correct AnswerAnswered by ExamLex AICompanies can enter international market...View AnswerShow Answer

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Countertrade refers to a variety of trad...
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Answered by ExamLex AI
Absolute advantage and comparative advan...
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The World Trade Organization (WTO) was c...
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verified

Correct Answer
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The federal government of the United Sta...
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Correct Answer
Answered by ExamLex AI
Trade restrictions can have various effe...
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Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Companies can enter international market...
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