Question 1

Countertrade deals are generally avoided by countries with heavy debt burdens.

Accepted Answer

A) True 
 B)False  False

Question 2

Washing machines that are manufactured in the United States and sold in Germany are categorized as U.S._____.

Accepted Answer

A) Exports 
B) countertrades 
C) Imports 
D) Outsourcing 
A) Exports 
B) countertrades 
C) Imports 
D) Outsourcing A

Question 3

Which country leads the world in the international trade of goods and services?

Accepted Answer

A) India 
B) China 
C) Russia 
D) The United States 
A) India 
B) China 
C) Russia 
D) The United States D

Question 4

A nation can develop a _______ if it can supply its products more efficiently and at a lower price than it can supply other goods,compared with the outputs of other countries.

Accepted Answer

A) tariff 
B) quota 
C) trade restriction 
D) comparative advantage 
A) tariff 
B) quota 
C) trade restriction 
D) comparative advantage

Question 5

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

Accepted Answer

A) True 
 B)False

Question 6

The GATT,an international trade accord,has sponsored a series of negotiations,called rounds,which substantially reduced worldwide tariffs and other barriers.

Accepted Answer

A) True 
 B)False

Question 7

If an imported product sells for more in the United States than it does in the producing country,the producing country could be accused of dumping.

Accepted Answer

A) True 
 B)False

Question 8

A U.S.clothing manufacturer allows an overseas producer to use its designs and specifications to make clothes.This is an example of _____.

Accepted Answer

A) countertrade 
B) direct exporting 
C) foreign licensing 
D) subcontracting 
A) countertrade 
B) direct exporting 
C) foreign licensing 
D) subcontracting

Question 9

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

Accepted Answer

A) True 
 B)False

Question 10

A global marketing approach is ideal for marketing luxury items due to their universal appeal.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would result from devaluation of the U.S.dollar?

Accepted Answer

A) Foreign goods would be less expensive for American consumers. 
B) Foreign companies would have to pay more to purchase U.S.assets. 
C) The cost of foreign vacations for U.S.citizens would be reduced. 
D) U.S.goods would sell for less abroad. 
A) Foreign goods would be less expensive for American consumers. 
B) Foreign companies would have to pay more to purchase U.S.assets. 
C) The cost of foreign vacations for U.S.citizens would be reduced. 
D) U.S.goods would sell for less abroad.

Question 12

The country of ABC sells mining equipment to the country of XYZ in return for cigars.This is an example of _____.

Accepted Answer

A) countertrade 
B) direct exporting 
C) foreign licensing 
D) international production 
A) countertrade 
B) direct exporting 
C) foreign licensing 
D) international production

Question 13

The country of Gevalia exported products totaling $86 billion last year.During the same year,Gevalia imported products valued at $43 billion.Gevalia has a(n)_____.

Accepted Answer

A) exchange rate of 2 to 1 
B) trade deficit of $43 billion 
C) trade surplus of $43 billion 
D) unfavorable balance of payments 
A) exchange rate of 2 to 1 
B) trade deficit of $43 billion 
C) trade surplus of $43 billion 
D) unfavorable balance of payments

Question 14

Live Machines,Inc.,a U.S.based company,is trying to establish a supplier relationship with a parts manufacturer in a small Asian country.Alejandro,the purchasing manager,is attempting to get to know the general manager and staff of the company to help finalize the agreement.Alejandro is attempting to overcome what type of barrier?

Accepted Answer

A) Physical barrier 
B) Tariff restriction 
C) Exchange controls 
D) Cultural barrier 
A) Physical barrier 
B) Tariff restriction 
C) Exchange controls 
D) Cultural barrier

Question 15

The North American Free Trade Agreement (NAFTA)is a trade accord designed to reduce trade restrictions between the two neighboring countries of the United States and Mexico.

Accepted Answer

A) True 
 B)False

Question 16

Florida-based WeText purchases cell phones manufactured in Taiwan and sells them in the United States.PMI is engaging in the international business activity known as _____.

Accepted Answer

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

Question 17

If the value of the Canadian dollar falls relative to the U.S.dollar,Canadian exports to the United States should increase.

Accepted Answer

A) True 
 B)False

Question 18

A trade surplus is a favorable balance of trade.

Accepted Answer

A) True 
 B)False

Question 19

Which of these limit the amounts of particular products that countries can import during specified time periods?

Accepted Answer

A) Exchange controls devaluation 
B) Embargo 
C) Quotas 
D) Foreign trade zone 
A) Exchange controls devaluation 
B) Embargo 
C) Quotas 
D) Foreign trade zone

Question 20

A trade deficit exists when a nation's exports exceed its imports.

Accepted Answer

A) True 
 B)False

Countertrade deals are generally avoided by countries with heavy debt burdens.

Washing machines that are manufactured in the United States and sold in Germany are categorized as U.S._____.

Which country leads the world in the international trade of goods and services?

A nation can develop a _______ if it can supply its products more efficiently and at a lower price than it can supply other goods,compared with the outputs of other countries.

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

The GATT,an international trade accord,has sponsored a series of negotiations,called rounds,which substantially reduced worldwide tariffs and other barriers.

If an imported product sells for more in the United States than it does in the producing country,the producing country could be accused of dumping.

A U.S.clothing manufacturer allows an overseas producer to use its designs and specifications to make clothes.This is an example of _____.

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

A global marketing approach is ideal for marketing luxury items due to their universal appeal.

Which of the following would result from devaluation of the U.S.dollar?

The country of ABC sells mining equipment to the country of XYZ in return for cigars.This is an example of _____.

The country of Gevalia exported products totaling $86 billion last year.During the same year,Gevalia imported products valued at $43 billion.Gevalia has a(n)_____.

The North American Free Trade Agreement (NAFTA)is a trade accord designed to reduce trade restrictions between the two neighboring countries of the United States and Mexico.

Florida-based WeText purchases cell phones manufactured in Taiwan and sells them in the United States.PMI is engaging in the international business activity known as _____.

If the value of the Canadian dollar falls relative to the U.S.dollar,Canadian exports to the United States should increase.

A trade surplus is a favorable balance of trade.

Which of these limit the amounts of particular products that countries can import during specified time periods?

A trade deficit exists when a nation's exports exceed its imports.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Trends in E-Commerce

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Exam 4: Competing in World Markets

Countertrade deals are generally avoided by countries with heavy debt burdens.

Washing machines that are manufactured in the United States and sold in Germany are categorized as U.S._____.

Which country leads the world in the international trade of goods and services?

A nation can develop a _______ if it can supply its products more efficiently and at a lower price than it can supply other goods,compared with the outputs of other countries.

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

The GATT,an international trade accord,has sponsored a series of negotiations,called rounds,which substantially reduced worldwide tariffs and other barriers.

If an imported product sells for more in the United States than it does in the producing country,the producing country could be accused of dumping.

A U.S.clothing manufacturer allows an overseas producer to use its designs and specifications to make clothes.This is an example of _____.

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

A global marketing approach is ideal for marketing luxury items due to their universal appeal.

Which of the following would result from devaluation of the U.S.dollar?

The country of ABC sells mining equipment to the country of XYZ in return for cigars.This is an example of _____.

The country of Gevalia exported products totaling $86 billion last year.During the same year,Gevalia imported products valued at $43 billion.Gevalia has a(n)_____.

The North American Free Trade Agreement (NAFTA)is a trade accord designed to reduce trade restrictions between the two neighboring countries of the United States and Mexico.

Florida-based WeText purchases cell phones manufactured in Taiwan and sells them in the United States.PMI is engaging in the international business activity known as _____.

If the value of the Canadian dollar falls relative to the U.S.dollar,Canadian exports to the United States should increase.

A trade surplus is a favorable balance of trade.

Which of these limit the amounts of particular products that countries can import during specified time periods?

A trade deficit exists when a nation's exports exceed its imports.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Trends in E-Commerce

Filters