Question 1

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

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 2

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country.The Saudi Arabian government is imposing a(n)

Accepted Answer

A)  import quota. 
B)  currency devaluation. 
C)  prohibition. 
D)  embargo. 
E)  dumping restriction. 
A)  import quota. 
B)  currency devaluation. 
C)  prohibition. 
D)  embargo. 
E)  dumping restriction.

Question 3

When it built production lines in the UK, BMW engaged in what type of international expansion?

Accepted Answer

A)  Totally owned facilities 
B)  Joint venture 
C)  Strategic alliance 
D)  Indirect investment 
E)  Exporting 
A)  Totally owned facilities 
B)  Joint venture 
C)  Strategic alliance 
D)  Indirect investment 
E)  Exporting

Question 4

Arguments for the government imposing restrictions on foreign trade include

Accepted Answer

A)  the loss of jobs in foreign countries. 
B)  advancing technology will harm the country's economy. 
C)  restriction of consumers' choices. 
D)  protection of the health of its citizens. 
E)  helping the foreign country become more competitive. 
A)  the loss of jobs in foreign countries. 
B)  advancing technology will harm the country's economy. 
C)  restriction of consumers' choices. 
D)  protection of the health of its citizens. 
E)  helping the foreign country become more competitive.

Question 5

An unfavourable balance of trade occurs when

Accepted Answer

A)  exports are greater than imports. 
B)  imports are greater than exports. 
C)  the total outflow of money is greater than the total inflow of money. 
D)  the total outflow of money is less than the total inflow of money. 
E)  exports equal imports. 
A)  exports are greater than imports. 
B)  imports are greater than exports. 
C)  the total outflow of money is greater than the total inflow of money. 
D)  the total outflow of money is less than the total inflow of money. 
E)  exports equal imports.

Question 6

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture.The company wishes to expand overseas.The company managers have been contemplating the best way to enter the foreign market.At first, the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty.The managers recognised, however, that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market.As such, the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.
After all the research was completed, the senior managers realised that they wanted to export their product.The managers decided that the transport carrier would notify them when the merchandise was shipped.This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Lynn Bernerd, Inc.Which of the following options is not one of the steps needed for entering an international market?

Accepted Answer

A)  Contact local government to see if taxes on trade can be waived. 
B)  Establish an overseas distribution network. 
C)  Set export prices and payment terms, methods, and techniques. 
D)  Identify key foreign markets for the product. 
E)  Identify exportable products. 
A)  Contact local government to see if taxes on trade can be waived. 
B)  Establish an overseas distribution network. 
C)  Set export prices and payment terms, methods, and techniques. 
D)  Identify key foreign markets for the product. 
E)  Identify exportable products.

Question 7

All of the following are reasons against having trade restrictions except

Accepted Answer

A)  the loss of jobs. 
B)  the misallocation of international resources. 
C)  the restriction of consumers' choices. 
D)  higher prices for consumers. 
E)  the protection of the health of citizens. 
A)  the loss of jobs. 
B)  the misallocation of international resources. 
C)  the restriction of consumers' choices. 
D)  higher prices for consumers. 
E)  the protection of the health of citizens.

Question 8

Which of the following countries is not part of the Trans-Pacific Partnership?

Accepted Answer

A)  Australia 
B)  Brazil 
C)  Chile 
D)  Malaysia 
E)  Peru 
A)  Australia 
B)  Brazil 
C)  Chile 
D)  Malaysia 
E)  Peru

Question 9

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Accepted Answer

A)  Multilateral development bank 
B)  Inter-American Development Bank 
C)  European Bank for Reconstruction and Development 
D)  Small Business Administration 
E)  Trade Promotion Coordinating Committee 
A)  Multilateral development bank 
B)  Inter-American Development Bank 
C)  European Bank for Reconstruction and Development 
D)  Small Business Administration 
E)  Trade Promotion Coordinating Committee

Question 10

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Accepted Answer

A)  monetary export control. 
B)  nontariff barrier. 
C)  currency devaluation. 
D)  currency control. 
E)  foreign-exchange control. 
A)  monetary export control. 
B)  nontariff barrier. 
C)  currency devaluation. 
D)  currency control. 
E)  foreign-exchange control.

Question 11

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Accepted Answer

A)  Japan would have a comparative advantage in electronics manufacturing. 
B)  Japan would have a positive balance of trade. 
C)  The United States would have a comparative advantage in electronics. 
D)  Japan would have an absolute advantage in electronics production. 
E)  Japan would have a trade deficit with the United States. 
A)  Japan would have a comparative advantage in electronics manufacturing. 
B)  Japan would have a positive balance of trade. 
C)  The United States would have a comparative advantage in electronics. 
D)  Japan would have an absolute advantage in electronics production. 
E)  Japan would have a trade deficit with the United States.

Question 12

Least-favoured-nation (LFN) status was the famous principle of GATT.

Accepted Answer

A) True 
 B)False

Question 13

All five multilateral development banks are supported by the industrialised nations.

Accepted Answer

A) True 
 B)False

Question 14

The Organisation of Petroleum Exporting Countries is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Accepted Answer

A) True 
 B)False

Question 15

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

Accepted Answer

A) True 
 B)False

Question 16

An import duty has the effect of all of the following except

Accepted Answer

A)  reducing the number of units exported. 
B)  raising the price of the product in the importing nation. 
C)  reducing the number of units imported. 
D)  creating a trade restriction. 
E)  protecting a domestic industry from competition. 
A)  reducing the number of units exported. 
B)  raising the price of the product in the importing nation. 
C)  reducing the number of units imported. 
D)  creating a trade restriction. 
E)  protecting a domestic industry from competition.

Question 17

If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to

Accepted Answer

A)  protect national security. 
B)  protect domestic jobs. 
C)  retaliate for Korea's tariffs. 
D)  lower prices for consumers. 
E)  protect an infant industry. 
A)  protect national security. 
B)  protect domestic jobs. 
C)  retaliate for Korea's tariffs. 
D)  lower prices for consumers. 
E)  protect an infant industry.

Question 18

The World Trade Organisation (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 19

Who are the two largest contributors to the Asian Development Bank?

Accepted Answer

A)  China and Japan 
B)  Japan and India 
C)  The United States and Japan 
D)  Russia and China 
E)  China and Indonesia 
A)  China and Japan 
B)  Japan and India 
C)  The United States and Japan 
D)  Russia and China 
E)  China and Indonesia

Question 20

The payments portion of the balance of payments-that is, payments made by the UK-does not include

Accepted Answer

A)  exports. 
B)  imports. 
C)  military spending. 
D)  foreign aid. 
E)  investments. 
A)  exports. 
B)  imports. 
C)  military spending. 
D)  foreign aid. 
E)  investments.

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country.The Saudi Arabian government is imposing a(n)

When it built production lines in the UK, BMW engaged in what type of international expansion?

Arguments for the government imposing restrictions on foreign trade include

An unfavourable balance of trade occurs when

All of the following are reasons against having trade restrictions except

Which of the following countries is not part of the Trans-Pacific Partnership?

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Least-favoured-nation (LFN) status was the famous principle of GATT.

All five multilateral development banks are supported by the industrialised nations.

The Organisation of Petroleum Exporting Countries is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

An import duty has the effect of all of the following except

If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to

The World Trade Organisation (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Who are the two largest contributors to the Asian Development Bank?

The payments portion of the balance of payments-that is, payments made by the UK-does not include

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

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country.The Saudi Arabian government is imposing a(n)

When it built production lines in the UK, BMW engaged in what type of international expansion?

Arguments for the government imposing restrictions on foreign trade include

An unfavourable balance of trade occurs when

All of the following are reasons against having trade restrictions except

Which of the following countries is not part of the Trans-Pacific Partnership?

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Least-favoured-nation (LFN) status was the famous principle of GATT.

All five multilateral development banks are supported by the industrialised nations.

The Organisation of Petroleum Exporting Countries is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

An import duty has the effect of all of the following except

If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to

The World Trade Organisation (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Who are the two largest contributors to the Asian Development Bank?

The payments portion of the balance of payments-that is, payments made by the UK-does not include

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