Question 1

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Accepted Answer

A)   decreasing the trade deficit of the United States.
B)   contributing to the positive balance of payments of the United States.
C)   contributing to the negative balance of payments of the United States.
D)   buying imported goods.
E)   contributing to the GDP of the United States.F) B) and D)
G) A) and B)

Question 2

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Accepted Answer

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

Question 3

Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n)

Accepted Answer

A)   import duty.
B)   nonmonetary restriction.
C)   embargo.
D)   restriction of trade.
E)   nontariff barrier.F) A) and D)
G) B) and D)

Question 4

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Accepted Answer

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

Question 5

The United States is a member of the ____, which is the successor to GATT.

Accepted Answer

A)   World Trade Organization
B)   North American Free Trade Agreement
C)   United Nations
D)   European Union
E)   Kennedy RoundF) A) and C)
G) A) and E)

Question 6

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

Accepted Answer

A)   economic community.
B)   free trade association.
C)   common market.
D)   international alliance.
E)   none of the above.F) None of the above
G) C) and D)

Question 7

Ginger decides to take her small company international. Which of the following would most likely be Ginger's and other small business owners' first step in going global?

Accepted Answer

A)   She is likely to form a joint venture with a company in the foreign country she is interested in.
B)   She will advertise her products on the Internet and export them worldwide.
C)   She will open and run a new facility in the foreign country she wants to expand to.
D)   She will form a strategic alliance to create a competitive advantage worldwide.
E)   She will grow her company into a multinational firm to compete around the world.F) B) and C)
G) B) and D)

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

Question 9

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Accepted Answer

A)   a GATT.
B)   the European Union.
C)   the Association of Southeast Asian Nations.
D)   a multinational.
E)   an orderly marketing agreement.F) A) and B)
G) A) and E)

Question 10

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Accepted Answer

A)   strategic alliance.
B)   licensing agreement.
C)   exporting agency.
D)   trading company.
E)   countertrade.F) B) and D)
G) A) and E)

Question 11

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Accepted Answer

A)   shows that to foreigner purchasers, the price of the china is the same before and after the devaluation.
B)   makes the china less attractive to foreigner purchasers.
C)   makes the china more attractive to foreign purchasers.
D)   is irrelevant to foreign purchasers.
E)   proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2. That way, they could get even more for their dollars.F) A) and C)
G) A) and E)

Question 12

An import duty has the effect of all of the following except

Accepted Answer

A)   reducing the number of units exported.
B)   raising the price of the product in the importing nation.
C)   reducing the number of units imported.
D)   creating a trade restriction.
E)   protecting a domestic industry from competition.F) C) and D)
G) A) and E)

Question 13

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 organization that had the power to mediate this situation, the furniture company realized 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) A) and E)
G) B) and C)

Question 14

Which of the following countries is not part of the Trans-Pacific Partnership?

Accepted Answer

A)   Australia
B)   Brazil
C)   Chile
D)   Malaysia
E)   PeruF) C) and E)
G) A) and E)

Question 15

Critics of NAFTA maintain that NAFTA

Accepted Answer

A)   has benefited companies in all three countries.
B)   has created high-paying export-related jobs.
C)   does nothing to help the environment.
D)   helps the agricultural sector.
E)   has resulted in increased sales and new partnerships.F) C) and E)
G) B) and C)

Question 16

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Accepted Answer

The Kennedy, the Tokyo, Uruguay, and the...

Question 17

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n)  ____ agreement.

Accepted Answer

A)   exporting
B)   strategic alliance
C)   licensing
D)   countertrade
E)   bill of ladingF) C) and D)
G) B) and C)

Question 18

The Export-Import Bank of the United States

Accepted Answer

A)   is owned and operated by Fortune 500 companies.
B)   is an independent agency of the U.S. government.
C)   aids foreign nations experiencing balance-of-payments problems.
D)   guarantees credit to American buyers of foreign goods.
E)   closed its operations in 1991.F) C) and D)
G) A) and B)

Question 19

An unfavorable balance of trade occurs when

Accepted Answer

A)   exports are greater than imports.
B)   imports are greater than exports.
C)   the total outflow of money is greater than the total inflow of money.
D)   the total outflow of money is less than the total inflow of money.
E)   exports equal imports.F) B) and E)
G) A) and B)

Question 20

XYZ Company wants to explore commercial opportunities in India and is seeking economic and export-promotion information. The best possibility would be the

Accepted Answer

A)   Advocacy Center.
B)   International Trade Administration.
C)   National Trade Data Bank.
D)   U.S. and Foreign Commercial Services.
E)   Trade Information Center.F) A) and B)
G) A) and C)

Exam 3: A: Exploring Global Business

Ginger decides to take her small company international. Which of the following would most likely be Ginger's and other small business owners' first step in going global?

Correct Answer
verified

An unfavorable balance of trade occurs when

Correct Answer
verified

Which of the following countries is not part of the Trans-Pacific Partnership?

Correct Answer
verified

The United States is a member of the ____, which is the successor to GATT.

Correct Answer
verified

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.

Correct Answer
verified

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Correct Answer
verified

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Correct Answer
verified

Correct Answer
verified

Critics of NAFTA maintain that NAFTA

Correct Answer
verified

Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n)

Correct Answer
verified

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

Correct Answer
verified

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Correct Answer
verified

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Correct Answer
verified

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Correct Answer
verified

The Export-Import Bank of the United States

Correct Answer
verified

XYZ Company wants to explore commercial opportunities in India and is seeking economic and export-promotion information. The best possibility would be the

Correct Answer
verified

An import duty has the effect of all of the following except

Correct Answer
verified

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Correct Answer
Answered by ExamLex AI
The Kennedy, the Tokyo, Uruguay, and the...
View Answer

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Correct Answer
verified

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

Correct Answer
verified

Exam 3: A: Exploring Global Business

Ginger decides to take her small company international. Which of the following would most likely be Ginger's and other small business owners' first step in going global?

Correct AnswerverifiedShow Answer

An unfavorable balance of trade occurs when

Correct AnswerverifiedShow Answer

Which of the following countries is not part of the Trans-Pacific Partnership?

Correct AnswerverifiedShow Answer

The United States is a member of the ____, which is the successor to GATT.

Correct AnswerverifiedShow Answer

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.

Correct AnswerverifiedShow Answer

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Correct AnswerverifiedShow Answer

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Critics of NAFTA maintain that NAFTA

Correct AnswerverifiedShow Answer

Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n)

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Correct AnswerverifiedShow Answer

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Correct AnswerverifiedShow Answer

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Correct AnswerverifiedShow Answer

The Export-Import Bank of the United States

Correct AnswerverifiedShow Answer

XYZ Company wants to explore commercial opportunities in India and is seeking economic and export-promotion information. The best possibility would be the

Correct AnswerverifiedShow Answer

An import duty has the effect of all of the following except

Correct AnswerverifiedShow Answer

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Correct AnswerAnswered by ExamLex AIThe Kennedy, the Tokyo, Uruguay, and the...View AnswerShow Answer

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Correct AnswerverifiedShow Answer

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
Answered by ExamLex AI
The Kennedy, the Tokyo, Uruguay, and the...
View Answer

Correct Answer
verified

Correct Answer
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