Question 1

What is dumping? Why do domestic manufacturers obtain antidumping duties through the government?

Accepted Answer

Dumping refers to the practice of a fore

Question 2

Why is balance of payments a much broader concept than balance of trade?

Accepted Answer

The balance of payments (BOP) is a much

Question 3

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A)  They will be faced with the highest demand ever. 
B)  They will become more competitive. 
C)  They will be put out of business because they cannot compete with the prices. 
D)  They will try to dump their toys in other countries. 
E)  Their revenues will decrease, but their long-term success will not be affected. 
A)  They will be faced with the highest demand ever. 
B)  They will become more competitive. 
C)  They will be put out of business because they cannot compete with the prices. 
D)  They will try to dump their toys in other countries. 
E)  Their revenues will decrease, but their long-term success will not be affected.

Question 4

Which of the following is a potential drawback of licensing?

Accepted Answer

A)  If quality is compromised, it may reflect poorly on the company providing the license. 
B)  Licensing will provide the original producer with much foreign marketing experience. 
C)  It is a relatively inexpensive way to market your product internationally. 
D)  It is an extremely expensive and highly involved method of international expansion. 
E)  It provides no compensation for the original company. 
A)  If quality is compromised, it may reflect poorly on the company providing the license. 
B)  Licensing will provide the original producer with much foreign marketing experience. 
C)  It is a relatively inexpensive way to market your product internationally. 
D)  It is an extremely expensive and highly involved method of international expansion. 
E)  It provides no compensation for the original company.

Question 5

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Accepted Answer

A) True 
 B)False

Question 6

When the United States recently imported $1,470 billion in merchandise and exported $819 billion, it had a trade deficit.

Accepted Answer

A) True 
 B)False

Question 7

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 8

The International Trade Administration (ITA) offers assistance and information to help exporters.

Accepted Answer

A) True 
 B)False

Question 9

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Accepted Answer

A) True 
 B)False

Question 10

When a country imports more than it exports, it has a(n) _____.

Accepted Answer

A)  trade surplus 
B)  favorable balance of trade 
C)  favorable exchange role 
D)  unfavorable balance of trade 
E)  favorable balance of payments 
A)  trade surplus 
B)  favorable balance of trade 
C)  favorable exchange role 
D)  unfavorable balance of trade 
E)  favorable balance of payments

Question 11

When Weseeyu, Inc., of Rochester, New York, sells 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.

Question 12

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Accepted Answer

A) True 
 B)False

Question 13

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any specific nation or region.These are examples of

Accepted Answer

A)  members of the Dow Jones Industrial Average. 
B)  global trading companies. 
C)  internationally owned facilities. 
D)  multinational enterprises. 
E)  foreign-domestic corporations. 
A)  members of the Dow Jones Industrial Average. 
B)  global trading companies. 
C)  internationally owned facilities. 
D)  multinational enterprises. 
E)  foreign-domestic corporations.

Question 14

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 15

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Accepted Answer

The Kennedy, the Tokyo, Uruguay, and the

Question 16

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n) ______.

Accepted Answer

A)  world trade organization 
B)  peace agreement 
C)  economic community 
D)  free trade agreement 
E)  global marketplace 
A)  world trade organization 
B)  peace agreement 
C)  economic community 
D)  free trade agreement 
E)  global marketplace

Question 17

What are nontariff barriers? How do nontariff barriers restrict international trade?

Accepted Answer

Nontariff barriers are restrictions on t

Question 18

Identify the role of the Export-Import Bank of the United States in fostering international business.

Accepted Answer

The Export-Import Bank of the United Sta

Question 19

What might be inferred if a nation has a continual deficit in its balance of payments?

Accepted Answer

A continual deficit in the balance of pa

Question 20

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

What is dumping? Why do domestic manufacturers obtain antidumping duties through the government?

Why is balance of payments a much broader concept than balance of trade?

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Which of the following is a potential drawback of licensing?

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

When the United States recently imported $1,470 billion in merchandise and exported $819 billion, it had a trade deficit.

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.

The International Trade Administration (ITA) offers assistance and information to help exporters.

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

When a country imports more than it exports, it has a(n) _____.

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in London, England, the company

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any specific nation or region.These are examples of

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

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n) ______.

What are nontariff barriers? How do nontariff barriers restrict international trade?

Identify the role of the Export-Import Bank of the United States in fostering international business.

What might be inferred if a nation has a continual deficit in its balance of payments?

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

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

What is dumping? Why do domestic manufacturers obtain antidumping duties through the government?

Why is balance of payments a much broader concept than balance of trade?

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Which of the following is a potential drawback of licensing?

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

When the United States recently imported $1,470 billion in merchandise and exported $819 billion, it had a trade deficit.

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.

The International Trade Administration (ITA) offers assistance and information to help exporters.

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

When a country imports more than it exports, it has a(n) _____.

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in London, England, the company

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any specific nation or region.These are examples of

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

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n) ______.

What are nontariff barriers? How do nontariff barriers restrict international trade?

Identify the role of the Export-Import Bank of the United States in fostering international business.

What might be inferred if a nation has a continual deficit in its balance of payments?

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

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