Question 1

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is the new country interested in receiving?

Accepted Answer

A)  Free trade 
B)  Importation/exportation 
C)  The Tokyo Round 
D)  Foreign-exchange control 
E)  Most-favoured-nation status 
A)  Free trade 
B)  Importation/exportation 
C)  The Tokyo Round 
D)  Foreign-exchange control 
E)  Most-favoured-nation status

Question 2

If it wants to reduce the money flowing out of the country, the UK can limit the number of Japanese cars being imported by imposing a(n)

Accepted Answer

A)  free trade zone. 
B)  GATT. 
C)  trade deficit. 
D)  balance of trade. 
E)  import quota. 
A)  free trade zone. 
B)  GATT. 
C)  trade deficit. 
D)  balance of trade. 
E)  import quota.

Question 3

Sangeeta purchases a Turkish rug from a local rug gallery in Dallas, Texas.Which of the following best describes this transaction?

Accepted Answer

A)  Sangeeta is a consumer, and the retailer imported the rug from Turkey. 
B)  Sangeeta is a consumer, and the retailer exported the rug from Turkey. 
C)  The original rug manufacturer from Turkey imported the materials to make the rug. 
D)  Sangeeta is a direct importer in this situation because she is purchasing a product made in Turkey. 
E)  Sangeeta is a direct exporter in this situation because the money she is spending will go to manufacturers in Turkey. 
A)  Sangeeta is a consumer, and the retailer imported the rug from Turkey. 
B)  Sangeeta is a consumer, and the retailer exported the rug from Turkey. 
C)  The original rug manufacturer from Turkey imported the materials to make the rug. 
D)  Sangeeta is a direct importer in this situation because she is purchasing a product made in Turkey. 
E)  Sangeeta is a direct exporter in this situation because the money she is spending will go to manufacturers in Turkey.

Question 4

The World Trade Organisation was created by the

Accepted Answer

A)  Kennedy Round. 
B)  United Nations. 
C)  League of Nations. 
D)  Tokyo Round. 
E)  Uruguay Round. 
A)  Kennedy Round. 
B)  United Nations. 
C)  League of Nations. 
D)  Tokyo Round. 
E)  Uruguay Round.

Question 5

The total value of a nation's exports less the total value of its imports is known as the balance of payments.

Accepted Answer

A) True 
 B)False

Question 6

Totally owned facilities overseas are an example of

Accepted Answer

A)  indirect investment. 
B)  direct investment. 
C)  roundabout investment. 
D)  licensing. 
E)  joint venture. 
A)  indirect investment. 
B)  direct investment. 
C)  roundabout investment. 
D)  licensing. 
E)  joint venture.

Question 7

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Accepted Answer

A)  Devalues 
B)  Increases 
C)  Balances 
D)  decreases 
E)  Restricts 
A)  Devalues 
B)  Increases 
C)  Balances 
D)  decreases 
E)  Restricts

Question 8

A trading company

Accepted Answer

A)  is involved in manufacturing. 
B)  owns assets related to manufacturing. 
C)  does not take title to products. 
D)  provides a link between buyers and sellers in different countries. 
E)  does not perform activities necessary to move the products. 
A)  is involved in manufacturing. 
B)  owns assets related to manufacturing. 
C)  does not take title to products. 
D)  provides a link between buyers and sellers in different countries. 
E)  does not perform activities necessary to move the products.

Question 9

The newest forms of international business structure developed to create competitive advantage on a worldwide basis are called

Accepted Answer

A)  licensees. 
B)  export agents. 
C)  strategic alliances. 
D)  trading companies. 
E)  countertraders. 
A)  licensees. 
B)  export agents. 
C)  strategic alliances. 
D)  trading companies. 
E)  countertraders.

Question 10

General Motors and Ford products produced in the United States can be found in many countries around the world.The United States is ____ these automobiles.

Accepted Answer

A)  Tariffing 
B)  Importing 
C)  Exporting 
D)  Releasing 
E)  Dumping 
A)  Tariffing 
B)  Importing 
C)  Exporting 
D)  Releasing 
E)  Dumping

Question 11

A complete halt to trading with a particular nation or in a particular product is called an embargo.

Accepted Answer

A) True 
 B)False

Question 12

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

Accepted Answer

A) True 
 B)False

Question 13

After the sharp drop in oil prices, the a nation considers enacting a tariff on imported oil.According to proponents, such a tariff would do all of the following except

Accepted Answer

A)  help reduce the federal budget deficit. 
B)  help strengthen the foreign trade deficit. 
C)  prop up a sagging domestic oil industry. 
D)  help cut the foreign trade deficit. 
E)  create a trade restriction. 
A)  help reduce the federal budget deficit. 
B)  help strengthen the foreign trade deficit. 
C)  prop up a sagging domestic oil industry. 
D)  help cut the foreign trade deficit. 
E)  create a trade restriction.

Question 14

NAFTA was built on the

Accepted Answer

A)  CAFTA model. 
B)  EU model. 
C)  Canadian Free Trade Agreement. 
D)  model of GATT. 
E)  Commonwealth of Independent States model. 
A)  CAFTA model. 
B)  EU model. 
C)  Canadian Free Trade Agreement. 
D)  model of GATT. 
E)  Commonwealth of Independent States model.

Question 15

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

Accepted Answer

A) True 
 B)False

Question 16

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

Accepted Answer

A)  hopeless industry. 
B)  soft industry. 
C)  infant industry. 
D)  protected industry. 
E)  toddler industry. 
A)  hopeless industry. 
B)  soft industry. 
C)  infant industry. 
D)  protected industry. 
E)  toddler industry.

Question 17

By definition, every country has a(n) ____ advantage in some product.

Accepted Answer

A)  Relative 
B)  Absolute 
C)  comparative 
D)  Superior 
E)  Inferior 
A)  Relative 
B)  Absolute 
C)  comparative 
D)  Superior 
E)  Inferior

Question 18

An organisation of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

Accepted Answer

A)  economic community. 
B)  free trade association. 
C)  common market. 
D)  international alliance. 
E)  none of the above. 
A)  economic community. 
B)  free trade association. 
C)  common market. 
D)  international alliance. 
E)  none of the above.

Question 19

The United Kingdom sells industrial supplies and materials to many nations around the world.The United Kingdom 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

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Accepted Answer

A)  is importing the lenses. 
B)  is exporting the lenses. 
C)  has an absolute advantage. 
D)  is increasing the balance-of-trade deficit. 
E)  is making a big mistake. 
A)  is importing the lenses. 
B)  is exporting the lenses. 
C)  has an absolute advantage. 
D)  is increasing the balance-of-trade deficit. 
E)  is making a big mistake.

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is the new country interested in receiving?

If it wants to reduce the money flowing out of the country, the UK can limit the number of Japanese cars being imported by imposing a(n)

Sangeeta purchases a Turkish rug from a local rug gallery in Dallas, Texas.Which of the following best describes this transaction?

The World Trade Organisation was created by the

The total value of a nation's exports less the total value of its imports is known as the balance of payments.

Totally owned facilities overseas are an example of

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

A trading company

The newest forms of international business structure developed to create competitive advantage on a worldwide basis are called

General Motors and Ford products produced in the United States can be found in many countries around the world.The United States is ____ these automobiles.

A complete halt to trading with a particular nation or in a particular product is called an embargo.

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

After the sharp drop in oil prices, the a nation considers enacting a tariff on imported oil.According to proponents, such a tariff would do all of the following except

NAFTA was built on the

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

By definition, every country has a(n) ____ advantage in some product.

An organisation of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

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

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

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

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Exam 3: Global Business

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is the new country interested in receiving?

If it wants to reduce the money flowing out of the country, the UK can limit the number of Japanese cars being imported by imposing a(n)

Sangeeta purchases a Turkish rug from a local rug gallery in Dallas, Texas.Which of the following best describes this transaction?

The World Trade Organisation was created by the

The total value of a nation's exports less the total value of its imports is known as the balance of payments.

Totally owned facilities overseas are an example of

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

A trading company

The newest forms of international business structure developed to create competitive advantage on a worldwide basis are called

General Motors and Ford products produced in the United States can be found in many countries around the world.The United States is ____ these automobiles.

A complete halt to trading with a particular nation or in a particular product is called an embargo.

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

After the sharp drop in oil prices, the a nation considers enacting a tariff on imported oil.According to proponents, such a tariff would do all of the following except

NAFTA was built on the

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

By definition, every country has a(n) ____ advantage in some product.

An organisation of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n)

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

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

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