Question 1

Which of the following is another name for an import duty?

Accepted Answer

A)  tariff 
B)  embargo 
C)  quota 
D)  limitation 
A)  tariff 
B)  embargo 
C)  quota 
D)  limitation

Question 2

Suppose Canada would like to decrease the amount of lumber brought into the country from other countries. What trade policy should Canada enact to accomplish this goal?

Accepted Answer

A)  increase tariffs on lumber imports 
B)  decrease tariffs on lumber imports 
C)  increase quota on lumber imports 
D)  decrease quota on lumber exports 
A)  increase tariffs on lumber imports 
B)  decrease tariffs on lumber imports 
C)  increase quota on lumber imports 
D)  decrease quota on lumber exports

Question 3

Canadian automakers are concerned about the availability of so many foreign cars to Canadian consumers, which they fear could cause loss of jobs in the Canadian auto industry. To address the situation, they encourage Parliament to do which of the following?

Accepted Answer

A)  increase export quotas 
B)  decrease import tariffs 
C)  increase import tariffs 
D)  increase import quotas 
A)  increase export quotas 
B)  decrease import tariffs 
C)  increase import tariffs 
D)  increase import quotas

Question 4

As Canada increases exports of aircraft, one might expect which of the following?

Accepted Answer

A)  an increase in access to resources 
B)  increased jobs and income in Canada 
C)  prices of aircraft to decrease 
D)  Canada to shift production resources to higher-value products 
A)  an increase in access to resources 
B)  increased jobs and income in Canada 
C)  prices of aircraft to decrease 
D)  Canada to shift production resources to higher-value products

Question 5

Suppose Russia would like to increase the amount of luxury goods brought into the country from other countries. What trade policy should Russia enact to accomplish this goal?

Accepted Answer

A)  increase tariffs on luxury good imports 
B)  lower quota on luxury good imports 
C)  decrease tariffs on luxury good imports 
D)  devalue its currency 
A)  increase tariffs on luxury good imports 
B)  lower quota on luxury good imports 
C)  decrease tariffs on luxury good imports 
D)  devalue its currency

Question 6

As Greece, Spain, and Portugal have struggled with recession, high unemployment, and soaring government debt, concerns have risen that their economic problems could spiral out of control and spread to the global economy. What international organization could most likely assist in this situation?

Accepted Answer

A)  The World Trade Organization 
B)  The World Bank 
C)  The International Stability Fund 
D)  The International Monetary Fund 
A)  The World Trade Organization 
B)  The World Bank 
C)  The International Stability Fund 
D)  The International Monetary Fund

Question 7

What are two benefits of importing?

Accepted Answer

A)  less access to resources, lower consumer prices 
B)  lower consumer prices, less consumer choice 
C)  higher consumer prices, increased access to resources 
D)  more consumer choice, lower consumer prices 
A)  less access to resources, lower consumer prices 
B)  lower consumer prices, less consumer choice 
C)  higher consumer prices, increased access to resources 
D)  more consumer choice, lower consumer prices

Question 8

Germany wants to retaliate against India for trade restrictions that limited the number of German cars that could be brought into India. Which of the following policy decisions would Germany utilize to accomplish this goal?

Accepted Answer

A)  increasing import quota on cars from India 
B)  enacting export embargo on cars to India 
C)  adjusting import tariffs on cars from India from 20% to 5% 
D)  adjusting import tariffs on cars from India from 5% to 20% 
A)  increasing import quota on cars from India 
B)  enacting export embargo on cars to India 
C)  adjusting import tariffs on cars from India from 20% to 5% 
D)  adjusting import tariffs on cars from India from 5% to 20%

Question 9

Suppose the Australian dollar increases substantially in value relative to other currencies. What is the likely result?

Accepted Answer

A)  Australian exports will decrease and imports will increase 
B)  Australian exports will increase and imports will decrease 
C)  Australian exports will decrease and imports will decrease 
D)  Australian exports will increase and imports will increase 
A)  Australian exports will decrease and imports will increase 
B)  Australian exports will increase and imports will decrease 
C)  Australian exports will decrease and imports will decrease 
D)  Australian exports will increase and imports will increase

Question 10

Canada does not sell military fighter jets such as F-16s to Iran in order to keep our military technology out of their hands. The rationale for this restriction is most likely for which of the following reasons?

Accepted Answer

A)  to protect national security 
B)  to protect domestic jobs 
C)  to retaliate for Iran's trade restrictions 
D)  to protect domestic manufacturers 
A)  to protect national security 
B)  to protect domestic jobs 
C)  to retaliate for Iran's trade restrictions 
D)  to protect domestic manufacturers

Question 11

If Brazil lowers its import quota for oil from Saudi Arabia, what is the desired effect of this change?

Accepted Answer

A)  to increase oil imports from Saudi Arabia 
B)  to decrease oil imports from Saudi Arabia 
C)  to halt oil imports from Saudi Arabia 
D)  to increase oil exports to Saudi Arabia 
A)  to increase oil imports from Saudi Arabia 
B)  to decrease oil imports from Saudi Arabia 
C)  to halt oil imports from Saudi Arabia 
D)  to increase oil exports to Saudi Arabia

Question 12

If the value of the Taiwan dollar increases relative to other currencies, which of the following would you expect?

Accepted Answer

A)  Canadian imports of Taiwanese goods will decrease. 
B)  Taiwan imports will decrease. 
C)  Taiwan exports will increase. 
D)  Taiwan imports will increase. 
A)  Canadian imports of Taiwanese goods will decrease. 
B)  Taiwan imports will decrease. 
C)  Taiwan exports will increase. 
D)  Taiwan imports will increase.

Question 13

Canada wishes to import no more than 100 million tons of sugar from Brazil in any given year. What type of import restriction should it impose?

Accepted Answer

A)  import duty 
B)  import quota 
C)  embargo 
D)  export duty 
A)  import duty 
B)  import quota 
C)  embargo 
D)  export duty

Question 14

Why did Gabriella choose franchising as her method of entry for her jewellery and accessory business?

Accepted Answer

A)  she wanted to maintain a high level of control in the business and was willing to take significant risks to enter the overseas market 
B)  she was not concerned about her level of control in the business but was concerned about her level of risk 
C)  she wanted to maintain a moderate level of control but lacked funds to open a division overseas 
D)  she was very concerned about her level of control in the company and wished to join a partnership to enter the overseas market 
A)  she wanted to maintain a high level of control in the business and was willing to take significant risks to enter the overseas market 
B)  she was not concerned about her level of control in the business but was concerned about her level of risk 
C)  she wanted to maintain a moderate level of control but lacked funds to open a division overseas 
D)  she was very concerned about her level of control in the company and wished to join a partnership to enter the overseas market

Question 15

China exports electronics to countries all over the world. Suppose the value of the Chinese yuan increases relative to other countries' currencies. What is the likely result?

Accepted Answer

A)  China would export fewer electronics to other countries. 
B)  China would export more electronics to other countries. 
C)  China would experience economic expansion. 
D)  International investors are likely to invest in Chinese markets. 
A)  China would export fewer electronics to other countries. 
B)  China would export more electronics to other countries. 
C)  China would experience economic expansion. 
D)  International investors are likely to invest in Chinese markets.

Question 16

Suppose the value of the Thai Baht decreases substantially in value compared to the Canadian dollar. What is the likely result?

Accepted Answer

A)  Thai imports from Canada will decrease but exports to Canada will increase. 
B)  Thai imports from Canada will increase and so will exports to Canada. 
C)  Thai imports from Canada will decrease and so will exports to Canada. 
D)  Thai imports from Canada will increase but exports to Canada will decrease. 
A)  Thai imports from Canada will decrease but exports to Canada will increase. 
B)  Thai imports from Canada will increase and so will exports to Canada. 
C)  Thai imports from Canada will decrease and so will exports to Canada. 
D)  Thai imports from Canada will increase but exports to Canada will decrease.

Question 17

What is the primary objective of the World Trade Organization?

Accepted Answer

A)  to help developing countries build a viable economy 
B)  to reduce barriers to trade worldwide 
C)  to provide technical assistance to developing countries 
D)  to promote the invention of new technologies 
A)  to help developing countries build a viable economy 
B)  to reduce barriers to trade worldwide 
C)  to provide technical assistance to developing countries 
D)  to promote the invention of new technologies

Question 18

If Japan were concerned that electronics coming from China were hurting the Japanese electronics industry, which of the following actions would Japan take?

Accepted Answer

A)  increase imports of Chinese electronics 
B)  cut import tariffs on Chinese electronics by 50% 
C)  stop exports of Japanese electronics to China 
D)  increase import tariffs on Chinese electronics by 50% 
A)  increase imports of Chinese electronics 
B)  cut import tariffs on Chinese electronics by 50% 
C)  stop exports of Japanese electronics to China 
D)  increase import tariffs on Chinese electronics by 50%

Question 19

Canada imposes a duty on Scotch whisky to generate income for the Canadian government. What is the term for this type of tariff?

Accepted Answer

A)  protective tariff 
B)  restrictive tariff 
C)  revenue tariff 
D)  income tariff 
A)  protective tariff 
B)  restrictive tariff 
C)  revenue tariff 
D)  income tariff

Question 20

Suppose Mexico increased tariffs on agriculture products from Chile by 20%. As a result, Chile retaliated by increasing tariffs on manufactured goods from Mexico by 15%. What international organization could most likely assist in this dispute?

Accepted Answer

A)  World Trade Organization 
B)  The World Bank 
C)  International Monetary Fund 
D)  United Nations 
A)  World Trade Organization 
B)  The World Bank 
C)  International Monetary Fund 
D)  United Nations

Which of the following is another name for an import duty?

Suppose Canada would like to decrease the amount of lumber brought into the country from other countries. What trade policy should Canada enact to accomplish this goal?

Canadian automakers are concerned about the availability of so many foreign cars to Canadian consumers, which they fear could cause loss of jobs in the Canadian auto industry. To address the situation, they encourage Parliament to do which of the following?

As Canada increases exports of aircraft, one might expect which of the following?

Suppose Russia would like to increase the amount of luxury goods brought into the country from other countries. What trade policy should Russia enact to accomplish this goal?

As Greece, Spain, and Portugal have struggled with recession, high unemployment, and soaring government debt, concerns have risen that their economic problems could spiral out of control and spread to the global economy. What international organization could most likely assist in this situation?

What are two benefits of importing?

Germany wants to retaliate against India for trade restrictions that limited the number of German cars that could be brought into India. Which of the following policy decisions would Germany utilize to accomplish this goal?

Suppose the Australian dollar increases substantially in value relative to other currencies. What is the likely result?

Canada does not sell military fighter jets such as F-16s to Iran in order to keep our military technology out of their hands. The rationale for this restriction is most likely for which of the following reasons?

If Brazil lowers its import quota for oil from Saudi Arabia, what is the desired effect of this change?

If the value of the Taiwan dollar increases relative to other currencies, which of the following would you expect?

Canada wishes to import no more than 100 million tons of sugar from Brazil in any given year. What type of import restriction should it impose?

Why did Gabriella choose franchising as her method of entry for her jewellery and accessory business?

China exports electronics to countries all over the world. Suppose the value of the Chinese yuan increases relative to other countries' currencies. What is the likely result?

Suppose the value of the Thai Baht decreases substantially in value compared to the Canadian dollar. What is the likely result?

What is the primary objective of the World Trade Organization?

If Japan were concerned that electronics coming from China were hurting the Japanese electronics industry, which of the following actions would Japan take?

Canada imposes a duty on Scotch whisky to generate income for the Canadian government. What is the term for this type of tariff?

Suppose Mexico increased tariffs on agriculture products from Chile by 20%. As a result, Chile retaliated by increasing tariffs on manufactured goods from Mexico by 15%. What international organization could most likely assist in this dispute?

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

Which of the following is another name for an import duty?

Suppose Canada would like to decrease the amount of lumber brought into the country from other countries. What trade policy should Canada enact to accomplish this goal?

Canadian automakers are concerned about the availability of so many foreign cars to Canadian consumers, which they fear could cause loss of jobs in the Canadian auto industry. To address the situation, they encourage Parliament to do which of the following?

As Canada increases exports of aircraft, one might expect which of the following?

Suppose Russia would like to increase the amount of luxury goods brought into the country from other countries. What trade policy should Russia enact to accomplish this goal?

As Greece, Spain, and Portugal have struggled with recession, high unemployment, and soaring government debt, concerns have risen that their economic problems could spiral out of control and spread to the global economy. What international organization could most likely assist in this situation?

What are two benefits of importing?

Germany wants to retaliate against India for trade restrictions that limited the number of German cars that could be brought into India. Which of the following policy decisions would Germany utilize to accomplish this goal?

Suppose the Australian dollar increases substantially in value relative to other currencies. What is the likely result?

Canada does not sell military fighter jets such as F-16s to Iran in order to keep our military technology out of their hands. The rationale for this restriction is most likely for which of the following reasons?

If Brazil lowers its import quota for oil from Saudi Arabia, what is the desired effect of this change?

If the value of the Taiwan dollar increases relative to other currencies, which of the following would you expect?

Canada wishes to import no more than 100 million tons of sugar from Brazil in any given year. What type of import restriction should it impose?

Why did Gabriella choose franchising as her method of entry for her jewellery and accessory business?

China exports electronics to countries all over the world. Suppose the value of the Chinese yuan increases relative to other countries' currencies. What is the likely result?

Suppose the value of the Thai Baht decreases substantially in value compared to the Canadian dollar. What is the likely result?

What is the primary objective of the World Trade Organization?

If Japan were concerned that electronics coming from China were hurting the Japanese electronics industry, which of the following actions would Japan take?

Canada imposes a duty on Scotch whisky to generate income for the Canadian government. What is the term for this type of tariff?

Suppose Mexico increased tariffs on agriculture products from Chile by 20%. As a result, Chile retaliated by increasing tariffs on manufactured goods from Mexico by 15%. What international organization could most likely assist in this dispute?

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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