Question 1

If the United States and Japan can't settle their trade disputes on their own, they probably should settle them through the

Accepted Answer

A)  Tokyo Round.
B)  Kennedy Round.
C)  Uruguay Round.
D)  WTO.
E)  United Nations.F) C) and E)
G) C) and D)

Question 2

Mexico is experiencing balance-of-payments deficits and is seeking financial support. Mexico probably should seek assistance from

Accepted Answer

A)  the Export-Import Bank of the United States.
B)  a multilateral development bank.
C)  the Export-Import Bank of the United States
D)  the IMF.
E)  the World Bank.F) All of the above
G) A) and B)

Question 3

Which is the largest emerging Asian market?

Accepted Answer

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

Question 4

When the United States levies a tax on coffee from Colombia, this type of tax is a(n)

Accepted Answer

A)  export duty.
B)  barter.
C)  import.
D)  tariff.
E)  responsibility.F) A) and B)
G) None of the above

Question 5

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

Question 6

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. When the transport carriers notify the exporter that the product has been shipped, they use a

Accepted Answer

A)  bill of lading.
B)  receipt.
C)  letter of credit.
D)  draft.
E)  shipping verification.F) B) and D)
G) A) and E)

Question 7

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida. These tourists are

Accepted Answer

A)  contributing to the United States' deficit balance of payments.
B)  helping increase the balance of payments for Japan.
C)  exporting products and services back to Japan.
D)  further decreasing the United States' balance of payments.
E)  helping the United States' balance of payments.F) All of the above
G) C) and D)

Question 8

XYZ Company wants to explore commercial opportunities in India and needs to consult with a country expert. XYZ Company should consider seeking assistance from the

Accepted Answer

A)  Advocacy Center.
B)  International Trade Administration.
C)  National Trade Data Bank.
D)  Trade Promotion Coordinating Committee.
E)  Export Legal Assistance Network.F) D) and E)
G) C) and D)

Question 9

In 2008, U.S. exports as a percentage of GDP

Accepted Answer

A)  exceeded 25 percent.
B)  equated to approximately 5 percent.
C)  reached the highest levels since the early 1900s.
D)  were at an all-time low.
E)  reached the highest levels in history.F) A) and C)
G) B) and D)

Question 10

What is a strategic alliance? What is its major advantage?

Accepted Answer

A strategic alliance, a partnership form...

Question 11

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

Question 12

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries. Which statement about Chablis is true?

Accepted Answer

A)  It has a comparative advantage in wine production.
B)  It has a comparative advantage in timber and oil production.
C)  It has an absolute advantage in the production of wine.
D)  It has an absolute advantage in timber and oil production.
E)  It has no comparative or absolute advantages.F) C) and E)
G) A) and B)

Question 13

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

Accepted Answer

An absolute advantage is the ability to ...

Question 14

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

Question 15

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) None of the above
G) A) and B)

Question 16

American automakers are concerned about the availability of so many foreign cars to U.S. 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 E)
G) C) and E)

Question 17

Globalization represents a huge opportunity for

Accepted Answer

A)  all countries--rich or poor.
B)  the United States.
C)  Japan.
D)  China.
E)  Asia.F) A) and B)
G) B) and E)

Question 18

Describe trading companies. What is an important function of trading companies?

Accepted Answer

A trading company provides a link betwee...

Question 19

A trading company provides a link between buyers and sellers in different countries.

Accepted Answer

A) True 
 B)False

Question 20

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Accepted Answer

A) True 
 B)False

Exam 3: Exploring Global Business

Which is the largest emerging Asian market?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Mexico is experiencing balance-of-payments deficits and is seeking financial support. Mexico probably should seek assistance from

Correct AnswerverifiedShow Answer

When the United States levies a tax on coffee from Colombia, this type of tax is a(n)

Correct AnswerverifiedShow Answer

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida. These tourists are

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

Globalization represents a huge opportunity for

Correct AnswerverifiedShow Answer

A trading company provides a link between buyers and sellers in different countries.

Correct AnswerverifiedShow Answer

What is a strategic alliance? What is its major advantage?

Correct AnswerverifiedA strategic alliance, a partnership form...View AnswerShow Answer

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

Correct AnswerverifiedAn absolute advantage is the ability to ...View AnswerShow Answer

An unfavorable balance of trade occurs when

Correct AnswerverifiedShow Answer

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries. Which statement about Chablis is true?

Correct AnswerverifiedShow Answer

If the United States and Japan can't settle their trade disputes on their own, they probably should settle them through the

Correct AnswerverifiedShow Answer

American automakers are concerned about the availability of so many foreign cars to U.S. 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

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

Correct AnswerverifiedShow Answer

Describe trading companies. What is an important function of trading companies?

Correct AnswerverifiedA trading company provides a link betwee...View AnswerShow Answer

In 2008, U.S. exports as a percentage of GDP

Correct AnswerverifiedShow Answer

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Correct AnswerverifiedShow Answer

XYZ Company wants to explore commercial opportunities in India and needs to consult with a country expert. XYZ Company should consider seeking assistance from the

Correct AnswerverifiedShow Answer

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. When the transport carriers notify the exporter that the product has been shipped, they use a

Correct AnswerverifiedShow Answer

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A strategic alliance, a partnership form...
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An absolute advantage is the ability to ...
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A trading company provides a link betwee...
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