Question 1

The United States wants to limit the amount of dollars that another country can obtain.The best way to accomplish this is to

Accepted Answer

A)  impose an import duty. 
B)  establish a foreign-exchange control. 
C)  declare an embargo. 
D)  set an import quota. 
E)  impose an export duty. 
A)  impose an import duty. 
B)  establish a foreign-exchange control. 
C)  declare an embargo. 
D)  set an import quota. 
E)  impose an export duty.

Question 2

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 organization that had the power to mediate this situation, the furniture company realized that the taxation it was subjected to was legal and that there was nothing it could do about it.
-Refer to Landing Service.What type of tax has the Brazilian government imposed on the company?

Accepted Answer

A)  import duty 
B)  embargo 
C)  revenue tariff 
D)  protective tariff 
E)  nontariff barrier 
A)  import duty 
B)  embargo 
C)  revenue tariff 
D)  protective tariff 
E)  nontariff barrier

Question 3

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace.He was further annoyed that he had to pay an artificially high price.When asked for his opinion, Alberto would probably argue

Accepted Answer

A)  against trade restrictions. 
B)  for the trade deficit. 
C)  for exports. 
D)  for tourism. 
E)  against international free trade associations. 
A)  against trade restrictions. 
B)  for the trade deficit. 
C)  for exports. 
D)  for tourism. 
E)  against international free trade associations.

Question 4

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 5

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

Accepted Answer

A)  amendments to the General Agreement on Tariffs and Trade 
B)  negotiations sponsored by GATT to reduce trade restrictions 
C)  a series of disagreements among the members of GATT 
D)  World Trade Organization meetings to encourage trade 
E)  political negotiations among many of the world's nations 
A)  amendments to the General Agreement on Tariffs and Trade 
B)  negotiations sponsored by GATT to reduce trade restrictions 
C)  a series of disagreements among the members of GATT 
D)  World Trade Organization meetings to encourage trade 
E)  political negotiations among many of the world's nations

Question 6

How does a joint venture help a U.S.firm enter international markets?

Accepted Answer

A joint venture can help a U.S. firm ent

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

When a coffee chain in Chicago purchases coffee from Colombia, South America, it

Accepted Answer

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

Question 9

Janet hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

Accepted Answer

A)  Janet's bank receives a letter of credit from the importer's bank. 
B)  it receives a letter of credit from Janet's bank. 
C)  its bank receives a draft from the importer's bank. 
D)  Janet receives a bill of lading. 
E)  the ultimate consumer sends a bill of lading to the exporter's bank. 
A)  Janet's bank receives a letter of credit from the importer's bank. 
B)  it receives a letter of credit from Janet's bank. 
C)  its bank receives a draft from the importer's bank. 
D)  Janet receives a bill of lading. 
E)  the ultimate consumer sends a bill of lading to the exporter's bank.

Question 10

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 11

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 12

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 13

Cultural barriers can impede acceptance of products in foreign countries.

Accepted Answer

A) True 
 B)False

Question 14

Arguments for imposing trade restrictions include

Accepted Answer

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

Question 15

General Motors and Ford products produced in the United States are found 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 16

In 1967, several Asian countries 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)  the Association of Southeast Asian Nations. 
D)  a multinational. 
E)  an orderly marketing agreement. 
A)  a GATT. 
B)  the European Union. 
C)  the Association of Southeast Asian Nations. 
D)  a multinational. 
E)  an orderly marketing agreement.

Question 17

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.When the transport carriers notify the exporter that the product has been shipped, they use a

Accepted Answer

A)  bill of lading. 
B)  receipt. 
C)  letter of credit. 
D)  draft. 
E)  shipping verification. 
A)  bill of lading. 
B)  receipt. 
C)  letter of credit. 
D)  draft. 
E)  shipping verification.

Question 18

____ is the ability to produce a specific product more efficiently than any other product.

Accepted Answer

A)  Absolute advantage 
B)  Specialization 
C)  Relative advantage 
D)  Dominant advantage 
E)  Comparative advantage 
A)  Absolute advantage 
B)  Specialization 
C)  Relative advantage 
D)  Dominant advantage 
E)  Comparative advantage

Question 19

What are multilateral development banks? What is their purpose? Who supports these banks?

Accepted Answer

Multilateral development banks are finan

Question 20

When a business has plants located in several foreign countries, it is called a(n) ______.

Accepted Answer

A)  multinational enterprise 
B)  joint venture 
C)  exporting business 
D)  licensing firm 
E)  None of the above are correct. 
A)  multinational enterprise 
B)  joint venture 
C)  exporting business 
D)  licensing firm 
E)  None of the above are correct.

The United States wants to limit the amount of dollars that another country can obtain.The best way to accomplish this is to

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace.He was further annoyed that he had to pay an artificially high price.When asked for his opinion, Alberto would probably argue

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

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

How does a joint venture help a U.S.firm enter international markets?

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

When a coffee chain in Chicago purchases coffee from Colombia, South America, it

Janet hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

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

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

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

Cultural barriers can impede acceptance of products in foreign countries.

Arguments for imposing trade restrictions include

General Motors and Ford products produced in the United States are found around the world.The United States is ____ these automobiles.

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

____ is the ability to produce a specific product more efficiently than any other product.

What are multilateral development banks? What is their purpose? Who supports these banks?

When a business has plants located in several foreign countries, it is called 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

The United States wants to limit the amount of dollars that another country can obtain.The best way to accomplish this is to

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace.He was further annoyed that he had to pay an artificially high price.When asked for his opinion, Alberto would probably argue

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

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

How does a joint venture help a U.S.firm enter international markets?

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

When a coffee chain in Chicago purchases coffee from Colombia, South America, it

Janet hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

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

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

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

Cultural barriers can impede acceptance of products in foreign countries.

Arguments for imposing trade restrictions include

General Motors and Ford products produced in the United States are found around the world.The United States is ____ these automobiles.

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

____ is the ability to produce a specific product more efficiently than any other product.

What are multilateral development banks? What is their purpose? Who supports these banks?

When a business has plants located in several foreign countries, it is called 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