Question 1

Howard believes that there should be no trade restrictions for any reason. What would Howard say are the negative consequences of trade restrictions?

Accepted Answer

A)  lower tariffs 
B)  lower prices 
C)  more consumer choice 
D)  higher prices 
A)  lower tariffs 
B)  lower prices 
C)  more consumer choice 
D)  higher prices D

Question 2

Tunisia has struggled with economic stability due to political transitions, work stoppages, and terrorist attacks that devastated the tourism industry. Which organization may be able to help Tunisia?

Accepted Answer

A)  The IMF 
B)  The WTO 
C)  The United Nations 
D)  The World Bank 
A)  The IMF 
B)  The WTO 
C)  The United Nations 
D)  The World Bank A

Question 3

Member nations of this economic community include Australia, Japan, and the United States.

Accepted Answer

A)  EU 
B)  NAFTA 
C)  APEC 
D)  ASEAN 
A)  EU 
B)  NAFTA 
C)  APEC 
D)  ASEAN C

Question 4

If the value of the Canadian dollar increases substantially relative to other currencies, what is the likely result?

Accepted Answer

A)  Canadian exports and imports will increase. 
B)  Canadian exports and imports will decrease. 
C)  Canadian exports will increase and imports will decrease. 
D)  Canadian exports will decrease and imports will increase. 
A)  Canadian exports and imports will increase. 
B)  Canadian exports and imports will decrease. 
C)  Canadian exports will increase and imports will decrease. 
D)  Canadian exports will decrease and imports will increase.

Question 5

Suppose that India changes the tariff on all imports from 40% to 10%. What is the desired effect of this change?

Accepted Answer

A)  to increase the price and amount of imports 
B)  to decrease the price and amount of imports 
C)  to increase the price of imports and decrease the amount of imports 
D)  to decrease the price of imports and increase the amount of imports 
A)  to increase the price and amount of imports 
B)  to decrease the price and amount of imports 
C)  to increase the price of imports and decrease the amount of imports 
D)  to decrease the price of imports and increase the amount of imports

Question 6

Absolute advantage is the ability to produce a specific product more efficiently than any other country. Canada has an absolute advantage in which of the following?

Accepted Answer

A)  oranges 
B)  wheat 
C)  water 
D)  copper 
A)  oranges 
B)  wheat 
C)  water 
D)  copper

Question 7

A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The company wants to maintain control over its sales while gaining experience in foreign markets. Which option would be best for this company?

Accepted Answer

A)  selling its products outright to an export/import merchant 
B)  hiring an export/import agent to assist with foreign sales 
C)  developing totally owned facilities in a foreign market 
D)  establishing its own sales offices in foreign countries 
A)  selling its products outright to an export/import merchant 
B)  hiring an export/import agent to assist with foreign sales 
C)  developing totally owned facilities in a foreign market 
D)  establishing its own sales offices in foreign countries

Question 8

Suppose the Canadian dollar is strong relative to the euro. Which of the following would one expect to see regarding imports and exports?

Accepted Answer

A)  imports to Canada decrease while Canadian exports increase 
B)  imports to Canada increase while Canadian exports increase 
C)  imports to Canada decrease while Canadian exports decrease 
D)  imports to Canada increase while Canadian exports decrease 
A)  imports to Canada decrease while Canadian exports increase 
B)  imports to Canada increase while Canadian exports increase 
C)  imports to Canada decrease while Canadian exports decrease 
D)  imports to Canada increase while Canadian exports decrease

Question 9

Totally owned facilities overseas are an example of which of the following?

Accepted Answer

A)  indirect investment 
B)  direct investment 
C)  licensing 
D)  joint venture 
A)  indirect investment 
B)  direct investment 
C)  licensing 
D)  joint venture

Question 10

Reasons cited for imposing restrictions on foreign trade include which of the following?

Accepted Answer

A)  the loss of jobs in foreign countries 
B)  higher prices for consumers 
C)  restriction of consumer choices 
D)  protection of the health of its citizens 
A)  the loss of jobs in foreign countries 
B)  higher prices for consumers 
C)  restriction of consumer choices 
D)  protection of the health of its citizens

Question 11

When Canada levies a tax on coffee from Ecuador, what type of tax is involved?

Accepted Answer

A)  export duty 
B)  barter 
C)  export 
D)  tariff 
A)  export duty 
B)  barter 
C)  export 
D)  tariff

Question 12

Which entity has a collective economy that is larger than the United States and almost three times larger than Japan?

Accepted Answer

A)  NAFTA 
B)  EU 
C)  APEC 
D)  ASEAN 
A)  NAFTA 
B)  EU 
C)  APEC 
D)  ASEAN

Question 13

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

Accepted Answer

A)  export/import agent agreement 
B)  joint venture 
C)  licensing 
D)  multinational agreement 
A)  export/import agent agreement 
B)  joint venture 
C)  licensing 
D)  multinational agreement

Question 14

A small country in Central America previously produced all of its own clothing because it has a strong textiles industry. Recently, it began importing clothing from Philippines, Vietnam, and Bangladesh. What is the likely result for the importing country?

Accepted Answer

A)  it will experience higher clothing prices 
B)  it will shift additional resources into its own textile industry 
C)  it will shift resources from textiles to a higher value industry 
D)  it will export less overall 
A)  it will experience higher clothing prices 
B)  it will shift additional resources into its own textile industry 
C)  it will shift resources from textiles to a higher value industry 
D)  it will export less overall

Question 15

Companies that purchase calculators in Taiwan and have them shipped back to Canada for resale are engaging in which of the following practices?

Accepted Answer

A)  exporting 
B)  shipping 
C)  importing 
D)  dumping 
A)  exporting 
B)  shipping 
C)  importing 
D)  dumping

Question 16

If Indonesia enacts an embargo on all goods from Canada and changes average import tariffs from 10% to 30%, what is the expected impact in Indonesia?

Accepted Answer

A)  increased exports to Canada 
B)  more consumer choice 
C)  less consumer choice 
D)  lower prices for Indonesian consumers 
A)  increased exports to Canada 
B)  more consumer choice 
C)  less consumer choice 
D)  lower prices for Indonesian consumers

Question 17

The goals of regional economic integration include which of the following?

Accepted Answer

A)  increased trade barriers 
B)  lower tariffs 
C)  smaller flow of international trade 
D)  lower import quotas 
A)  increased trade barriers 
B)  lower tariffs 
C)  smaller flow of international trade 
D)  lower import quotas

Question 18

Canada is considered the global leader in many high-value industries. Which of the following is NOT one of those industries that Canada is a global leader in?

Accepted Answer

A)  financial services 
B)  telecommunications 
C)  agriculture 
D)  technology development 
A)  financial services 
B)  telecommunications 
C)  agriculture 
D)  technology development

Question 19

If Canada were to increase the tariff for steel by 50%, what would be the desired effect of this change?

Accepted Answer

A)  to increase the price and amount of steel imports 
B)  to decrease the price and amount of steel imports 
C)  to increase the price of steel imports and decrease the amount of steel imports 
D)  to decrease the price of steel imports and increase the amount of steel imports 
A)  to increase the price and amount of steel imports 
B)  to decrease the price and amount of steel imports 
C)  to increase the price of steel imports and decrease the amount of steel imports 
D)  to decrease the price of steel imports and increase the amount of steel imports

Question 20

If Brazil enacts an import embargo on sugar from other countries, what is the most likely result?

Accepted Answer

A)  decrease in sugar imports 
B)  increase in sugar imports 
C)  increase in sugar exports 
D)  devaluation of Brazilian currency 
A)  decrease in sugar imports 
B)  increase in sugar imports 
C)  increase in sugar exports 
D)  devaluation of Brazilian currency

Howard believes that there should be no trade restrictions for any reason. What would Howard say are the negative consequences of trade restrictions?

Tunisia has struggled with economic stability due to political transitions, work stoppages, and terrorist attacks that devastated the tourism industry. Which organization may be able to help Tunisia?

Member nations of this economic community include Australia, Japan, and the United States.

If the value of the Canadian dollar increases substantially relative to other currencies, what is the likely result?

Suppose that India changes the tariff on all imports from 40% to 10%. What is the desired effect of this change?

Absolute advantage is the ability to produce a specific product more efficiently than any other country. Canada has an absolute advantage in which of the following?

Suppose the Canadian dollar is strong relative to the euro. Which of the following would one expect to see regarding imports and exports?

Totally owned facilities overseas are an example of which of the following?

Reasons cited for imposing restrictions on foreign trade include which of the following?

When Canada levies a tax on coffee from Ecuador, what type of tax is involved?

Which entity has a collective economy that is larger than the United States and almost three times larger than Japan?

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

A small country in Central America previously produced all of its own clothing because it has a strong textiles industry. Recently, it began importing clothing from Philippines, Vietnam, and Bangladesh. What is the likely result for the importing country?

Companies that purchase calculators in Taiwan and have them shipped back to Canada for resale are engaging in which of the following practices?

If Indonesia enacts an embargo on all goods from Canada and changes average import tariffs from 10% to 30%, what is the expected impact in Indonesia?

The goals of regional economic integration include which of the following?

Canada is considered the global leader in many high-value industries. Which of the following is NOT one of those industries that Canada is a global leader in?

If Canada were to increase the tariff for steel by 50%, what would be the desired effect of this change?

If Brazil enacts an import embargo on sugar from other countries, what is the most likely result?

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Choosing a Form of Business Ownership

Considering Small Business Entrepreneurship and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating Employees and Teams

Enhancing Employee Management Relations

Building Customer Relationships Through Effective Marketing

Developing and Managing Products

Managing Distribution and Pricing

Developing Integrated Marketing Communications

Exploring Business Technology

Using Accounting and Financial Information

Understanding Money Banking and Credit

Recognizing the Basics of Financial Management

Understanding Personal Finance and Investments

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Exam 3: Exploring Global Business

Howard believes that there should be no trade restrictions for any reason. What would Howard say are the negative consequences of trade restrictions?

Tunisia has struggled with economic stability due to political transitions, work stoppages, and terrorist attacks that devastated the tourism industry. Which organization may be able to help Tunisia?

Member nations of this economic community include Australia, Japan, and the United States.

If the value of the Canadian dollar increases substantially relative to other currencies, what is the likely result?

Suppose that India changes the tariff on all imports from 40% to 10%. What is the desired effect of this change?

Absolute advantage is the ability to produce a specific product more efficiently than any other country. Canada has an absolute advantage in which of the following?

Suppose the Canadian dollar is strong relative to the euro. Which of the following would one expect to see regarding imports and exports?

Totally owned facilities overseas are an example of which of the following?

Reasons cited for imposing restrictions on foreign trade include which of the following?

When Canada levies a tax on coffee from Ecuador, what type of tax is involved?

Which entity has a collective economy that is larger than the United States and almost three times larger than Japan?

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

A small country in Central America previously produced all of its own clothing because it has a strong textiles industry. Recently, it began importing clothing from Philippines, Vietnam, and Bangladesh. What is the likely result for the importing country?

Companies that purchase calculators in Taiwan and have them shipped back to Canada for resale are engaging in which of the following practices?

If Indonesia enacts an embargo on all goods from Canada and changes average import tariffs from 10% to 30%, what is the expected impact in Indonesia?

The goals of regional economic integration include which of the following?

Canada is considered the global leader in many high-value industries. Which of the following is NOT one of those industries that Canada is a global leader in?

If Canada were to increase the tariff for steel by 50%, what would be the desired effect of this change?

If Brazil enacts an import embargo on sugar from other countries, what is the most likely result?

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Choosing a Form of Business Ownership

Considering Small Business Entrepreneurship and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating Employees and Teams

Enhancing Employee Management Relations

Building Customer Relationships Through Effective Marketing

Developing and Managing Products

Managing Distribution and Pricing

Developing Integrated Marketing Communications

Exploring Business Technology

Using Accounting and Financial Information

Understanding Money Banking and Credit

Recognizing the Basics of Financial Management

Understanding Personal Finance and Investments

Filters