Question 1

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements.

Accepted Answer

A) True 
 B)False

Question 2

Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.

Accepted Answer

A) True 
 B)False

Question 3

The system of accounts that records a nation's international financial transactions is most accurately called its

Accepted Answer

A)  supply chain management system. 
B)  gross domestic product system. 
C)  net domestic product payments. 
D)  balance of payments. 
E)  net national product systems. 
A)  supply chain management system. 
B)  gross domestic product system. 
C)  net domestic product payments. 
D)  balance of payments. 
E)  net national product systems.

Question 4

While unintended, what is an adverse consequence of globalization?

Accepted Answer

A)  nationalization of private sector holdings 
B)  lower and more competitive oil prices 
C)  reduced variety and quality of goods and services 
D)  worker exploitation and domestic job losses 
E)  provision of loans from the World Bank 
A)  nationalization of private sector holdings 
B)  lower and more competitive oil prices 
C)  reduced variety and quality of goods and services 
D)  worker exploitation and domestic job losses 
E)  provision of loans from the World Bank

Question 5

Explain the difference between a quota and a licensing limit.

Accepted Answer

As a means of regulating the flow of exc

Question 6

What is a basic criticism of global financial institutions?

Accepted Answer

A)  They failed to focus on the aim of reducing inequalities between rich and poor countries. 
B)  They failed to help the Asian countries substantially when they underwent a major financial crisis in the 1990s. 
C)  They failed to respect the autonomy of member nations by deeming any bilateral agreements between members as illegal if made without their approval. 
D)  They failed to foresee and counter the unintended effects of globalization like pollution, exploitation, and cultural extinction. 
E)  They failed to suppress the terrorists who were responsible for the attack in London that coincided with the G8 summit. 
A)  They failed to focus on the aim of reducing inequalities between rich and poor countries. 
B)  They failed to help the Asian countries substantially when they underwent a major financial crisis in the 1990s. 
C)  They failed to respect the autonomy of member nations by deeming any bilateral agreements between members as illegal if made without their approval. 
D)  They failed to foresee and counter the unintended effects of globalization like pollution, exploitation, and cultural extinction. 
E)  They failed to suppress the terrorists who were responsible for the attack in London that coincided with the G8 summit.

Question 7

Compare and contrast the three accounts of a balance-of-payments statement.

Accepted Answer

A balance-of-payments statement includes

Question 8

An exchange permit issued by a government can stipulate an unfavorable rate of exchange depending on the desires of the government.

Accepted Answer

A) True 
 B)False

Question 9

The tariff on certain goods is based on the percentage of the determined value of the item being imported. What type of tariff is this?

Accepted Answer

A)  compound duty 
B)  quota duty 
C)  specific duty 
D)  reciprocal duty 
E)  ad valorem duty 
A)  compound duty 
B)  quota duty 
C)  specific duty 
D)  reciprocal duty 
E)  ad valorem duty

Question 10

What factor was primarily responsible for the excess in production capacity in the United States after World War II?

Accepted Answer

A)  The United States government raised the tariffs on most imports by 60%. 
B)  Many firms from other nations shifted their production facilities to the United States. 
C)  Domestic demand was at a historic low and resulted in excess capacity. 
D)  The returning military after World War II increased the labor supply in the United States. 
E)  The implementation of the Marshall Plan dampened the overseas demand. 
A)  The United States government raised the tariffs on most imports by 60%. 
B)  Many firms from other nations shifted their production facilities to the United States. 
C)  Domestic demand was at a historic low and resulted in excess capacity. 
D)  The returning military after World War II increased the labor supply in the United States. 
E)  The implementation of the Marshall Plan dampened the overseas demand.

Question 11

An embargo sets a limit on the quantity of goods one country can sell to another.

Accepted Answer

A) True 
 B)False

Question 12

Which trading partner of the United States became its number one "trade problem" at the beginning of the 21st century?

Accepted Answer

A)  United Kingdom 
B)  Japan 
C)  Germany 
D)  Canada 
E)  China 
A)  United Kingdom 
B)  Japan 
C)  Germany 
D)  Canada 
E)  China

Question 13

A voluntary export restraint is an agreement signed willingly between the importing country and the exporting country for a restriction on the

Accepted Answer

A)  overall tax. 
B)  number of businesses eligible for imports. 
C)  volume of exports. 
D)  government's portion of the paid tariff. 
E)  balance-of-payments statements. 
A)  overall tax. 
B)  number of businesses eligible for imports. 
C)  volume of exports. 
D)  government's portion of the paid tariff. 
E)  balance-of-payments statements.

Question 14

A specific unit or dollar limit applied to a particular type of good is called a(n)

Accepted Answer

A)  trade license. 
B)  quota. 
C)  ad valorem duty. 
D)  predatory price. 
E)  exchange rate. 
A)  trade license. 
B)  quota. 
C)  ad valorem duty. 
D)  predatory price. 
E)  exchange rate.

Question 15

Active Bicycle Company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. What category of nontariff barriers primarily uses such quality issues as a trade barrier?

Accepted Answer

A)  quotas 
B)  licenses 
C)  embargoes 
D)  boycotts 
E)  standards 
A)  quotas 
B)  licenses 
C)  embargoes 
D)  boycotts 
E)  standards

Question 16

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and possibly severe financial harm?

Accepted Answer

A)  the market access section 
B)  the export expansion section 
C)  the import relief section 
D)  the foreign exchange regulation section 
E)  the trade deficit section 
A)  the market access section 
B)  the export expansion section 
C)  the import relief section 
D)  the foreign exchange regulation section 
E)  the trade deficit section

Question 17

What is a defining characteristic of a balance-of-payments statement?

Accepted Answer

A)  It is a record of the domestic transactions between the government of a country and the private companies in that country. 
B)  It records all financial transactions between the residents of a country and those of the rest of the world. 
C)  It records the trade policies of the member nations of the WTO. 
D)  It is an annual record of the profitable foreign transactions made by a particular country. 
E)  It is a financial statement in which the credits must exceed the debits. 
A)  It is a record of the domestic transactions between the government of a country and the private companies in that country. 
B)  It records all financial transactions between the residents of a country and those of the rest of the world. 
C)  It records the trade policies of the member nations of the WTO. 
D)  It is an annual record of the profitable foreign transactions made by a particular country. 
E)  It is a financial statement in which the credits must exceed the debits.

Question 18

Voluntary export restraints are common in the agricultural industry when an agreement is made between the importing and exporting countries for a restriction on the volume of exports.

Accepted Answer

A) True 
 B)False

Question 19

What agreement makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution channels?

Accepted Answer

A)  Trade-Related Aspects of Intellectual Property Rights (TRIPs) 
B)  Trade-Related Investment Measures (TRIMs) 
C)  General Agreement on Trade in Services (GATS) 
D)  Marrakesh Agreement 
E)  Stockholm Agreement 
A)  Trade-Related Aspects of Intellectual Property Rights (TRIPs) 
B)  Trade-Related Investment Measures (TRIMs) 
C)  General Agreement on Trade in Services (GATS) 
D)  Marrakesh Agreement 
E)  Stockholm Agreement

Question 20

If a country refuses to sell some products to another country, it is utilizing which barrier to trade?

Accepted Answer

A)  import credit discriminations 
B)  export subsidies 
C)  voluntary export restraints 
D)  embargoes 
E)  packaging, labeling, or marking standards 
A)  import credit discriminations 
B)  export subsidies 
C)  voluntary export restraints 
D)  embargoes 
E)  packaging, labeling, or marking standards

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements.

Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.

The system of accounts that records a nation's international financial transactions is most accurately called its

While unintended, what is an adverse consequence of globalization?

Explain the difference between a quota and a licensing limit.

What is a basic criticism of global financial institutions?

Compare and contrast the three accounts of a balance-of-payments statement.

An exchange permit issued by a government can stipulate an unfavorable rate of exchange depending on the desires of the government.

The tariff on certain goods is based on the percentage of the determined value of the item being imported. What type of tariff is this?

What factor was primarily responsible for the excess in production capacity in the United States after World War II?

An embargo sets a limit on the quantity of goods one country can sell to another.

Which trading partner of the United States became its number one "trade problem" at the beginning of the 21st century?

A voluntary export restraint is an agreement signed willingly between the importing country and the exporting country for a restriction on the

A specific unit or dollar limit applied to a particular type of good is called a(n)

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and possibly severe financial harm?

What is a defining characteristic of a balance-of-payments statement?

Voluntary export restraints are common in the agricultural industry when an agreement is made between the importing and exporting countries for a restriction on the volume of exports.

What agreement makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution channels?

If a country refuses to sell some products to another country, it is utilizing which barrier to trade?

The Scope and Challenge of International Marketing

History and Geography: the Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: a Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters

Exam 2: The Dynamic Environment of International Trade

The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements.

Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.

The system of accounts that records a nation's international financial transactions is most accurately called its

While unintended, what is an adverse consequence of globalization?

Explain the difference between a quota and a licensing limit.

What is a basic criticism of global financial institutions?

Compare and contrast the three accounts of a balance-of-payments statement.

An exchange permit issued by a government can stipulate an unfavorable rate of exchange depending on the desires of the government.

The tariff on certain goods is based on the percentage of the determined value of the item being imported. What type of tariff is this?

What factor was primarily responsible for the excess in production capacity in the United States after World War II?

An embargo sets a limit on the quantity of goods one country can sell to another.

Which trading partner of the United States became its number one "trade problem" at the beginning of the 21st century?

A voluntary export restraint is an agreement signed willingly between the importing country and the exporting country for a restriction on the

A specific unit or dollar limit applied to a particular type of good is called a(n)

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and possibly severe financial harm?

What is a defining characteristic of a balance-of-payments statement?

Voluntary export restraints are common in the agricultural industry when an agreement is made between the importing and exporting countries for a restriction on the volume of exports.

What agreement makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution channels?

If a country refuses to sell some products to another country, it is utilizing which barrier to trade?

The Scope and Challenge of International Marketing

History and Geography: the Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: a Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters