Question 1

Balance of payments is a ____ concept than balance of trade.

Accepted Answer

A)  more difficult 
B)  less difficult 
C)  nearly identical 
D)  Broader 
E)  Narrower 
A)  more difficult 
B)  less difficult 
C)  nearly identical 
D)  Broader 
E)  Narrower

Question 2

Balance of payments is a much broader concept than balance of trade.

Accepted Answer

A) True 
 B)False

Question 3

If a small country wants to buy aircraft from the UK and the UK wants to export its aircraft, the UK may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Accepted Answer

A)  GATT 
B)  IMF 
C)  WTO 
D)  EU 
E)  MDB 
A)  GATT 
B)  IMF 
C)  WTO 
D)  EU 
E)  MDB

Question 4

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Accepted Answer

A)  absolute advantage. 
B)  comparative advantage. 
C)  advantage based on efficient production. 
D)  trade deficit. 
E)  lot of diamonds. 
A)  absolute advantage. 
B)  comparative advantage. 
C)  advantage based on efficient production. 
D)  trade deficit. 
E)  lot of diamonds.

Question 5

Critics of NAFTA maintain that NAFTA

Accepted Answer

A)  has benefited companies in all three countries. 
B)  has created high-paying export-related jobs. 
C)  does nothing to help the environment. 
D)  helps the agricultural sector. 
E)  has resulted in increased sales and new partnerships. 
A)  has benefited companies in all three countries. 
B)  has created high-paying export-related jobs. 
C)  does nothing to help the environment. 
D)  helps the agricultural sector. 
E)  has resulted in increased sales and new partnerships.

Question 6

Forming a joint venture with an existing foreign company offers all of the following advantages except

Accepted Answer

A)  joining an established firm. 
B)  requiring less commitment from all parties involved in the joint venture. 
C)  providing immediate marketing knowledge. 
D)  providing reduced risk. 
E)  providing control over product attributes. 
A)  joining an established firm. 
B)  requiring less commitment from all parties involved in the joint venture. 
C)  providing immediate marketing knowledge. 
D)  providing reduced risk. 
E)  providing control over product attributes.

Question 7

An international organisation formed at the end of World War II by the United States and twenty-two other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the

Accepted Answer

A)  Trade Expansion Act. 
B)  Kennedy Round. 
C)  GATT. 
D)  Tokyo Round. 
E)  Common Market. 
A)  Trade Expansion Act. 
B)  Kennedy Round. 
C)  GATT. 
D)  Tokyo Round. 
E)  Common Market.

Question 8

The United States does not sell fighter jets, such as F-16s, to Libya.The rationale for this restriction is most likely to

Accepted Answer

A)  protect national security. 
B)  protect domestic jobs. 
C)  protect the health of its citizens. 
D)  retaliate for Libya's trade restrictions. 
E)  protect domestic manufacturers. 
A)  protect national security. 
B)  protect domestic jobs. 
C)  protect the health of its citizens. 
D)  retaliate for Libya's trade restrictions. 
E)  protect domestic manufacturers.

Question 9

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

Accepted Answer

A) True 
 B)False

Question 10

Quotas may be set on worldwide imports or on imports from a specific country.

Accepted Answer

A) True 
 B)False

Question 11

Mexico is experiencing a balance of payment deficit 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 WTO. 
D)  the IMF. 
E)  GATT. 
A)  the Export-Import Bank of the United States. 
B)  a multilateral development bank. 
C)  the WTO. 
D)  the IMF. 
E)  GATT.

Question 12

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 13

Suppose France imposes a tax on agricultural products from the UK to help its own farmers.This describes a(n)

Accepted Answer

A)  revenue tariff. 
B)  preservation tariff. 
C)  embargo. 
D)  nontariff barrier. 
E)  protective tariff. 
A)  revenue tariff. 
B)  preservation tariff. 
C)  embargo. 
D)  nontariff barrier. 
E)  protective tariff.

Question 14

Landing Service
Landing Service is a lawn furniture company that has been around for many years.It is known for its ability to produce furniture more efficiently than any other company in the nation.In truth, no other companies in any other nation come close.Landing Service has shipped many of its products internationally.In fact, 80 percent of its profits come from international sales.However, the Italian government has imposed a tax on imported furniture items to protect local companies.The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out.However, after Landing Service contacted the organisation that had the power to mediate this situation, the furniture company realised that the taxation it was subjected to was legal and that there was nothing it could do about it.
-Refer to Landing Service.Landing Service must have contacted which of these organisations to mediate regarding unfair treatment by foreign governments?

Accepted Answer

A)  MDB 
B)  GATT 
C)  WTO 
D)  EU 
E)  OPEC 
A)  MDB 
B)  GATT 
C)  WTO 
D)  EU 
E)  OPEC

Question 15

The U.K.government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds.This is best described as a(n)

Accepted Answer

A)  protective tariff. 
B)  revenue tariff. 
C)  dumping duty. 
D)  import quota. 
E)  excise tax. 
A)  protective tariff. 
B)  revenue tariff. 
C)  dumping duty. 
D)  import quota. 
E)  excise tax.

Question 16

The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's

Accepted Answer

A)  trade deficit. 
B)  balance of payments. 
C)  unfavourable balance. 
D)  balance of trade. 
E)  favourable balance. 
A)  trade deficit. 
B)  balance of payments. 
C)  unfavourable balance. 
D)  balance of trade. 
E)  favourable balance.

Question 17

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States.After devaluation, the set of china costs $1,000.This change

Accepted Answer

A)  shows that to foreigner purchasers, the price of the china is the same before and after the devaluation. 
B)  makes the china less attractive to foreigner purchasers. 
C)  makes the china more attractive to foreign purchasers. 
D)  is irrelevant to foreign purchasers. 
E)  proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way, they could get even more for their dollars. 
A)  shows that to foreigner purchasers, the price of the china is the same before and after the devaluation. 
B)  makes the china less attractive to foreigner purchasers. 
C)  makes the china more attractive to foreign purchasers. 
D)  is irrelevant to foreign purchasers. 
E)  proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way, they could get even more for their dollars.

Question 18

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

Accepted Answer

A) True 
 B)False

Question 19

The UK sells industrial supplies and materials to many nations around the world.The UK thus engages in

Accepted Answer

A)  dumping. 
B)  tariffing. 
C)  importing. 
D)  exporting. 
E)  deficit trading. 
A)  dumping. 
B)  tariffing. 
C)  importing. 
D)  exporting. 
E)  deficit trading.

Question 20

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Accepted Answer

A)  trading company 
B)  strategic alliance 
C)  licensing company 
D)  countertrade agreement 
E)  joint venture 
A)  trading company 
B)  strategic alliance 
C)  licensing company 
D)  countertrade agreement 
E)  joint venture

Balance of payments is a ____ concept than balance of trade.

Balance of payments is a much broader concept than balance of trade.

If a small country wants to buy aircraft from the UK and the UK wants to export its aircraft, the UK may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Critics of NAFTA maintain that NAFTA

Forming a joint venture with an existing foreign company offers all of the following advantages except

An international organisation formed at the end of World War II by the United States and twenty-two other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the

The United States does not sell fighter jets, such as F-16s, to Libya.The rationale for this restriction is most likely to

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

Quotas may be set on worldwide imports or on imports from a specific country.

Mexico is experiencing a balance of payment deficit and is seeking financial support.Mexico probably should seek assistance from

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Suppose France imposes a tax on agricultural products from the UK to help its own farmers.This describes a(n)

The U.K.government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds.This is best described as a(n)

The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States.After devaluation, the set of china costs $1,000.This change

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

The UK sells industrial supplies and materials to many nations around the world.The UK thus engages in

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Introduction to Business

Responsible Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters

Exam 3: Global Business

Balance of payments is a ____ concept than balance of trade.

Balance of payments is a much broader concept than balance of trade.

If a small country wants to buy aircraft from the UK and the UK wants to export its aircraft, the UK may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Critics of NAFTA maintain that NAFTA

Forming a joint venture with an existing foreign company offers all of the following advantages except

An international organisation formed at the end of World War II by the United States and twenty-two other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the

The United States does not sell fighter jets, such as F-16s, to Libya.The rationale for this restriction is most likely to

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

Quotas may be set on worldwide imports or on imports from a specific country.

Mexico is experiencing a balance of payment deficit and is seeking financial support.Mexico probably should seek assistance from

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Suppose France imposes a tax on agricultural products from the UK to help its own farmers.This describes a(n)

The U.K.government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds.This is best described as a(n)

The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States.After devaluation, the set of china costs $1,000.This change

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

The UK sells industrial supplies and materials to many nations around the world.The UK thus engages in

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Introduction to Business

Responsible Business

Types of Business Ownership

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters