Question 1

Which of the following Asian countries has the leading economic growth?

Accepted Answer

A)  Japan 
B)  Indonesia 
C)  Korea 
D)  Malaysia 
E)  China 
A)  Japan 
B)  Indonesia 
C)  Korea 
D)  Malaysia 
E)  China

Question 2

How has international trade changed since the end of World War II?

Accepted Answer

A)  Trade across national borders has decreased since its peak during the early to mid-1900s. 
B)  International trade has increased steadily since this period of time. 
C)  The amount of international trading has remained relatively stable since this time. 
D)  International trade has become completely unrestricted. 
E)  International trading has become much more heavily regulated and restricted by all countries. 
A)  Trade across national borders has decreased since its peak during the early to mid-1900s. 
B)  International trade has increased steadily since this period of time. 
C)  The amount of international trading has remained relatively stable since this time. 
D)  International trade has become completely unrestricted. 
E)  International trading has become much more heavily regulated and restricted by all countries.

Question 3

ABC Company wants to be prepared for the ASEAN free trade area.The company plans to develop its own production and marketing facilities in one or more ASEAN countries.The best choice for ABC Company is

Accepted Answer

A)  a joint venture. 
B)  a licensing agreement. 
C)  totally owned facilities. 
D)  exporting. 
E)  sales offices. 
A)  a joint venture. 
B)  a licensing agreement. 
C)  totally owned facilities. 
D)  exporting. 
E)  sales offices.

Question 4

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A)  embargo. 
B)  stoppage. 
C)  stay. 
D)  closure. 
E)  barricade. 
A)  embargo. 
B)  stoppage. 
C)  stay. 
D)  closure. 
E)  barricade.

Question 5

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Accepted Answer

A)  an overall favourable balance of trade. 
B)  an overall unfavourable balance of trade. 
C)  a favourable balance of trade with Jamaica. 
D)  neither a favourable nor an unfavourable balance of trade with Jamaica. 
E)  an unfavourable balance of trade with Jamaica. 
A)  an overall favourable balance of trade. 
B)  an overall unfavourable balance of trade. 
C)  a favourable balance of trade with Jamaica. 
D)  neither a favourable nor an unfavourable balance of trade with Jamaica. 
E)  an unfavourable balance of trade with Jamaica.

Question 6

Arguments for imposing trade restrictions include

Accepted Answer

A)  the misallocation of international resources. 
B)  equalising a nation's balance of payments. 
C)  higher prices for consumers. 
D)  restriction of consumers' choices. 
E)  none of the above. 
A)  the misallocation of international resources. 
B)  equalising a nation's balance of payments. 
C)  higher prices for consumers. 
D)  restriction of consumers' choices. 
E)  none of the above.

Question 7

The Tokyo Round

Accepted Answer

A)  was completed in 1947. 
B)  resulted in 50 percent tariff cuts. 
C)  was implemented over a fifteen-year period. 
D)  increased nontariff barriers. 
E)  eased import quotas and unrealistic quality standards for imports. 
A)  was completed in 1947. 
B)  resulted in 50 percent tariff cuts. 
C)  was implemented over a fifteen-year period. 
D)  increased nontariff barriers. 
E)  eased import quotas and unrealistic quality standards for imports.

Question 8

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 nation's balance of trade.

Accepted Answer

A) True 
 B)False

Question 9

Another name for an import duty is a(n)

Accepted Answer

A)  tariff. 
B)  embargo. 
C)  devaluation. 
D)  quota. 
E)  limitation. 
A)  tariff. 
B)  embargo. 
C)  devaluation. 
D)  quota. 
E)  limitation.

Question 10

Because Saudi Arabia and Australia have ____, Saudi Arabia can specialise in the production of crude oil and petroleum products, and Australia can specialise in the production of wool.

Accepted Answer

A)  a company advantage 
B)  an absolute advantage 
C)  a comparative advantage 
D)  an effective manufacturing system 
E)  very low labor costs 
A)  a company advantage 
B)  an absolute advantage 
C)  a comparative advantage 
D)  an effective manufacturing system 
E)  very low labor costs

Question 11

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.The United States 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 12

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 13

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.Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.

Accepted Answer

A)  Total 
B)  Relative 
C)  Comparative 
D)  Proportional 
E)  Absolute 
A)  Total 
B)  Relative 
C)  Comparative 
D)  Proportional 
E)  Absolute

Question 14

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 15

Foreign licencing is similar to

Accepted Answer

A)  starting from scratch. 
B)  franchising. 
C)  wholesaling. 
D)  establishing a subsidiary in another country. 
E)  establishing a sales office in a foreign country. 
A)  starting from scratch. 
B)  franchising. 
C)  wholesaling. 
D)  establishing a subsidiary in another country. 
E)  establishing a sales office in a foreign country.

Question 16

Eleven republics of the former Soviet Union are members of the

Accepted Answer

A)  Former Soviet Republics Trade Agreement. 
B)  Organisation of Petroleum Exporting Countries. 
C)  Association of Asian Nations. 
D)  European and Asian Economic Union. 
E)  Commonwealth of Independent States. 
A)  Former Soviet Republics Trade Agreement. 
B)  Organisation of Petroleum Exporting Countries. 
C)  Association of Asian Nations. 
D)  European and Asian Economic Union. 
E)  Commonwealth of Independent States.

Question 17

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

Accepted Answer

A)  Licence 
B)  letter of credit 
C)  bill of lading 
D)  Draft 
E)  voucher 
A)  Licence 
B)  letter of credit 
C)  bill of lading 
D)  Draft 
E)  voucher

Question 18

A tariff is a tax levied on a particular foreign product entering a country.

Accepted Answer

A) True 
 B)False

Question 19

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties.This action is called a(n)

Accepted Answer

A)  embargo. 
B)  import quota. 
C)  trade ban. 
D)  foreign-exchange control. 
E)  import duty. 
A)  embargo. 
B)  import quota. 
C)  trade ban. 
D)  foreign-exchange control. 
E)  import duty.

Question 20

The UK wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

Accepted Answer

A)  import duty. 
B)  foreign exchange control. 
C)  import quota. 
D)  embargo. 
E)  export duty. 
A)  import duty. 
B)  foreign exchange control. 
C)  import quota. 
D)  embargo. 
E)  export duty.

Which of the following Asian countries has the leading economic growth?

How has international trade changed since the end of World War II?

ABC Company wants to be prepared for the ASEAN free trade area.The company plans to develop its own production and marketing facilities in one or more ASEAN countries.The best choice for ABC Company is

A complete halt to trading with a particular nation or in a particular product is called a(n)

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Arguments for imposing trade restrictions include

The Tokyo Round

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 nation's balance of trade.

Another name for an import duty is a(n)

Because Saudi Arabia and Australia have ____, Saudi Arabia can specialise in the production of crude oil and petroleum products, and Australia can specialise in the production of wool.

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.The United States thus engages in

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Foreign licencing is similar to

Eleven republics of the former Soviet Union are members of the

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

A tariff is a tax levied on a particular foreign product entering a country.

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties.This action is called a(n)

The UK wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

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 Asian countries has the leading economic growth?

How has international trade changed since the end of World War II?

ABC Company wants to be prepared for the ASEAN free trade area.The company plans to develop its own production and marketing facilities in one or more ASEAN countries.The best choice for ABC Company is

A complete halt to trading with a particular nation or in a particular product is called a(n)

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Arguments for imposing trade restrictions include

The Tokyo Round

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 nation's balance of trade.

Another name for an import duty is a(n)

Because Saudi Arabia and Australia have ____, Saudi Arabia can specialise in the production of crude oil and petroleum products, and Australia can specialise in the production of wool.

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.The United States thus engages in

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Foreign licencing is similar to

Eleven republics of the former Soviet Union are members of the

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

A tariff is a tax levied on a particular foreign product entering a country.

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties.This action is called a(n)

The UK wishes to import no more than 100 million tons of sugar from India in any given year.The type of import restriction it should impose is a(n)

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