Question 1

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 2

Which of the following represents the highest level of involvement in international business?

Accepted Answer

A)  strategic alliance 
B)  totally owned facilities 
C)  multinational firm 
D)  joint ventures 
E)  exporting 
A)  strategic alliance 
B)  totally owned facilities 
C)  multinational firm 
D)  joint ventures 
E)  exporting

Question 3

If the United States and Japan can't settle their trade disputes on their own, they probably should settle them through the _____.

Accepted Answer

A)  Tokyo Round 
B)  Kennedy Round 
C)  Uruguay Round 
D)  WTO 
E)  United Nations 
A)  Tokyo Round 
B)  Kennedy Round 
C)  Uruguay Round 
D)  WTO 
E)  United Nations

Question 4

OPEC 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 5

The Kingdom of Mocha enjoys no absolute advantage in crude oil, diamonds, or wool.However, the Mochans manufacture high-quality bows and arrows.Which statement about the Mochans is true?

Accepted Answer

A)  The Mochans should try to produce their own crude oil, diamonds, and wool. 
B)  The Mochans have a comparative advantage in the production of bows and arrows. 
C)  The Mochans have an unqualified advantage in the production of bows and arrows. 
D)  The Mochans have a determined advantage in the production of arrows. 
E)  The Mochans are engaged in dumping bows and arrows. 
A)  The Mochans should try to produce their own crude oil, diamonds, and wool. 
B)  The Mochans have a comparative advantage in the production of bows and arrows. 
C)  The Mochans have an unqualified advantage in the production of bows and arrows. 
D)  The Mochans have a determined advantage in the production of arrows. 
E)  The Mochans are engaged in dumping bows and arrows.

Question 6

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

Accepted Answer

A)  license 
B)  letter of credit 
C)  bill of lading 
D)  draft 
E)  voucher 
A)  license 
B)  letter of credit 
C)  bill of lading 
D)  draft 
E)  voucher

Question 7

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 8

The participants in the Kennedy Round have succeeded in reducing tariffs by less than 20 percent.

Accepted Answer

A) True 
 B)False

Question 9

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture.The company currently operates in the United States but 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 recognized, 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 realized 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 agency should the managers at Lynn Bernerd, Inc.seek assistance from?

Accepted Answer

A)  GATT 
B)  Trade Information Center 
C)  World Trade Association 
D)  U.S.Export Assistance Centers 
E)  U.S.and Foreign Commercial Services 
A)  GATT 
B)  Trade Information Center 
C)  World Trade Association 
D)  U.S.Export Assistance Centers 
E)  U.S.and Foreign Commercial Services

Question 10

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture.The company currently operates in the United States but 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 recognized, 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 realized 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 11

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg.This organization is known as the

Accepted Answer

A)  General Agreement on Tariffs and Trade. 
B)  European Economic Area. 
C)  European Free Trade Agreement. 
D)  European Union. 
E)  Euro Economic Alliance. 
A)  General Agreement on Tariffs and Trade. 
B)  European Economic Area. 
C)  European Free Trade Agreement. 
D)  European Union. 
E)  Euro Economic Alliance.

Question 12

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Accepted Answer

The national balance of trade refers to

Question 13

The Organization of Petroleum Exporting Countries (OPEC)

Accepted Answer

A)  was founded in 1975. 
B)  was conceived as a collective-bargaining unit. 
C)  was organized in response to the formation of the European Community. 
D)  was effective in increasing the supply of oil. 
E)  has as its objective completely free trade among its members. 
A)  was founded in 1975. 
B)  was conceived as a collective-bargaining unit. 
C)  was organized in response to the formation of the European Community. 
D)  was effective in increasing the supply of oil. 
E)  has as its objective completely free trade among its members.

Question 14

Describe the world economic outlook for international trade.

Accepted Answer

The world economic outlook for internati

Question 15

What does the International Monetary Fund (IMF) do for nations with an unfavorable balance of trade?

Accepted Answer

The International Monetary Fund (IMF) is

Question 16

The World Trade Organization 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 17

Which of the following statements is true about NAFTA?

Accepted Answer

A)  It is a free trade agreement between Canada and the United States. 
B)  It was initiated by the United States. 
C)  It is built on the Canadian Free Trade Agreement (FT
A) . 
D)  It immediately eliminated tariffs among the United States, Mexico, and Canada. 
E)  It was enacted in 2002 and encourages free trade. 
A)  It is a free trade agreement between Canada and the United States. 
B)  It was initiated by the United States. 
C)  It is built on the Canadian Free Trade Agreement (FT
A) . 
D)  It immediately eliminated tariffs among the United States, Mexico, and Canada. 
E)  It was enacted in 2002 and encourages free trade.

Question 18

Howard believes that there should be no trade restrictions for any reason.What effect would Howard say that trade restrictions have on prices?

Accepted Answer

A)  He would argue that by encouraging competition with trade restrictions, prices are likely to decrease. 
B)  He would argue that restrictions would cause greater competition and therefore lead to higher prices. 
C)  He would say that trade restrictions have no impact on prices, but they do restrict consumers' choices. 
D)  He would say that restrictions reduce competition and therefore cause an increase in prices. 
E)  He would argue that trade restrictions increase prices because they break up domestic monopolies. 
A)  He would argue that by encouraging competition with trade restrictions, prices are likely to decrease. 
B)  He would argue that restrictions would cause greater competition and therefore lead to higher prices. 
C)  He would say that trade restrictions have no impact on prices, but they do restrict consumers' choices. 
D)  He would say that restrictions reduce competition and therefore cause an increase in prices. 
E)  He would argue that trade restrictions increase prices because they break up domestic monopolies.

Question 19

The United States has enjoyed a trade surplus in services during the last two decades.

Accepted Answer

A) True 
 B)False

Question 20

The U.S.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

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

Which of the following represents the highest level of involvement in international business?

If the United States and Japan can't settle their trade disputes on their own, they probably should settle them through the _____.

OPEC 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.

The Kingdom of Mocha enjoys no absolute advantage in crude oil, diamonds, or wool.However, the Mochans manufacture high-quality bows and arrows.Which statement about the Mochans is true?

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

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

The participants in the Kennedy Round have succeeded in reducing tariffs by less than 20 percent.

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg.This organization is known as the

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

The Organization of Petroleum Exporting Countries (OPEC)

Describe the world economic outlook for international trade.

What does the International Monetary Fund (IMF) do for nations with an unfavorable balance of trade?

The World Trade Organization was created by the _____.

Which of the following statements is true about NAFTA?

Howard believes that there should be no trade restrictions for any reason.What effect would Howard say that trade restrictions have on prices?

The United States has enjoyed a trade surplus in services during the last two decades.

The U.S.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) _____.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

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Exam 3: Exploring Global Business

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

Which of the following represents the highest level of involvement in international business?

If the United States and Japan can't settle their trade disputes on their own, they probably should settle them through the _____.

OPEC 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.

The Kingdom of Mocha enjoys no absolute advantage in crude oil, diamonds, or wool.However, the Mochans manufacture high-quality bows and arrows.Which statement about the Mochans is true?

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

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

The participants in the Kennedy Round have succeeded in reducing tariffs by less than 20 percent.

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg.This organization is known as the

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

The Organization of Petroleum Exporting Countries (OPEC)

Describe the world economic outlook for international trade.

What does the International Monetary Fund (IMF) do for nations with an unfavorable balance of trade?

The World Trade Organization was created by the _____.

Which of the following statements is true about NAFTA?

Howard believes that there should be no trade restrictions for any reason.What effect would Howard say that trade restrictions have on prices?

The United States has enjoyed a trade surplus in services during the last two decades.

The U.S.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) _____.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Information and E-Business

Using Accounting Information

Mastering Financial Management

Filters