Question 1

Which of the following functions is not performed by a trading company?

Accepted Answer

A)  Taking title to products 
B)  Manufacturing products for foreign trading 
C)  Linking buyers and sellers in different countries 
D)  Buying products at the lowest price consistent with quality 
E)  Performing activities necessary to move goods to the foreign country 
A)  Taking title to products 
B)  Manufacturing products for foreign trading 
C)  Linking buyers and sellers in different countries 
D)  Buying products at the lowest price consistent with quality 
E)  Performing activities necessary to move goods to the foreign country

Question 2

One of the consequences of trade restrictions is misallocation of international resources.

Accepted Answer

A) True 
 B)False

Question 3

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Accepted Answer

A) True 
 B)False

Question 4

The TPP was created in 2011 to do all of the following except

Accepted Answer

A)  lower barriers to trade. 
B)  market products jointly. 
C)  increase exports. 
D)  boost economies of member countries. 
E)  lower investment barriers. 
A)  lower barriers to trade. 
B)  market products jointly. 
C)  increase exports. 
D)  boost economies of member countries. 
E)  lower investment barriers.

Question 5

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

Accepted Answer

A)  The Export-Import Bank of the United States 
B)  The Asian Development Bank 
C)  The International Monetary Fund 
D)  The Inter-American Development Bank 
E)  The Multilateral Development Bank 
A)  The Export-Import Bank of the United States 
B)  The Asian Development Bank 
C)  The International Monetary Fund 
D)  The Inter-American Development Bank 
E)  The Multilateral Development Bank

Question 6

In addition to political considerations, all of the following are reasons for trade restrictions except

Accepted Answer

A)  equalising a nation's balance of payments. 
B)  protecting new and weak industries. 
C)  protecting the health of citizens. 
D)  protecting national security. 
E)  all of the above are correct. 
A)  equalising a nation's balance of payments. 
B)  protecting new and weak industries. 
C)  protecting the health of citizens. 
D)  protecting national security. 
E)  all of the above are correct.

Question 7

An unfavourable trade balance is called a(n)

Accepted Answer

A)  balance of trade. 
B)  trade deficit. 
C)  currency devaluation. 
D)  balance of payments. 
E)  import balance. 
A)  balance of trade. 
B)  trade deficit. 
C)  currency devaluation. 
D)  balance of payments. 
E)  import balance.

Question 8

Jeff Rose is an executive with a technology company in the UK and he has been given the task of setting up a facility in China to serve the Chinese market.He is likely to encounter all of the following challenges except

Accepted Answer

A)  unemployment. 
B)  political difficulties. 
C)  a small market. 
D)  inefficiently run businesses. 
E)  underemployment. 
A)  unemployment. 
B)  political difficulties. 
C)  a small market. 
D)  inefficiently run businesses. 
E)  underemployment.

Question 9

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Accepted Answer

A)  export-import merchant 
B)  international bank 
C)  joint venture 
D)  export-import agent 
E)  trading broker 
A)  export-import merchant 
B)  international bank 
C)  joint venture 
D)  export-import agent 
E)  trading broker

Question 10

Political considerations usually are involved in a country's decision to impose a trade embargo.

Accepted Answer

A) True 
 B)False

Question 11

When the UK levies a tax on coffee from Ecuador, this type of tax is a(n)

Accepted Answer

A)  export duty. 
B)  barter. 
C)  import. 
D)  tariff. 
E)  responsibility. 
A)  export duty. 
B)  barter. 
C)  import. 
D)  tariff. 
E)  responsibility.

Question 12

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Accepted Answer

A) True 
 B)False

Question 13

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Accepted Answer

A) True 
 B)False

Question 14

If South Africa were to trade diamonds to the UK in exchange for heavy machinery, these countries would execute a(n)

Accepted Answer

A)  auction agreement. 
B)  countertrade. 
C)  strategic transaction. 
D)  licensing agreement. 
E)  free-trade agreement. 
A)  auction agreement. 
B)  countertrade. 
C)  strategic transaction. 
D)  licensing agreement. 
E)  free-trade agreement.

Question 15

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida.These tourists are

Accepted Answer

A)  contributing to the United States' deficit balance of payments. 
B)  helping increase the balance of payments for Japan. 
C)  exporting products and services back to Japan. 
D)  further decreasing the United States' balance of payments. 
E)  helping the United States' balance of payments. 
A)  contributing to the United States' deficit balance of payments. 
B)  helping increase the balance of payments for Japan. 
C)  exporting products and services back to Japan. 
D)  further decreasing the United States' balance of payments. 
E)  helping the United States' balance of payments.

Question 16

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Accepted Answer

A)  a GATT. 
B)  the European Union. 
C)  a cartel. 
D)  a multinational. 
E)  an orderly marketing agreement. 
A)  a GATT. 
B)  the European Union. 
C)  a cartel. 
D)  a multinational. 
E)  an orderly marketing agreement.

Which of the following functions is not performed by a trading company?

One of the consequences of trade restrictions is misallocation of international resources.

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

The TPP was created in 2011 to do all of the following except

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

In addition to political considerations, all of the following are reasons for trade restrictions except

An unfavourable trade balance is called a(n)

Jeff Rose is an executive with a technology company in the UK and he has been given the task of setting up a facility in China to serve the Chinese market.He is likely to encounter all of the following challenges except

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Political considerations usually are involved in a country's decision to impose a trade embargo.

When the UK levies a tax on coffee from Ecuador, this type of tax is a(n)

Joint venture agreements generally require a very low level of commitment from all the parties involved.

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

If South Africa were to trade diamonds to the UK in exchange for heavy machinery, these countries would execute a(n)

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida.These tourists are

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

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

Which of the following functions is not performed by a trading company?

One of the consequences of trade restrictions is misallocation of international resources.

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

The TPP was created in 2011 to do all of the following except

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

In addition to political considerations, all of the following are reasons for trade restrictions except

An unfavourable trade balance is called a(n)

Jeff Rose is an executive with a technology company in the UK and he has been given the task of setting up a facility in China to serve the Chinese market.He is likely to encounter all of the following challenges except

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Political considerations usually are involved in a country's decision to impose a trade embargo.

When the UK levies a tax on coffee from Ecuador, this type of tax is a(n)

Joint venture agreements generally require a very low level of commitment from all the parties involved.

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

If South Africa were to trade diamonds to the UK in exchange for heavy machinery, these countries would execute a(n)

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida.These tourists are

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

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