Question 1

Several European countries have 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)  a cartel. 
D)  a multinational. 
E)  an orderly marketing agreement. 
A)  a GATT. 
B)  the European Union. 
C)  a cartel. 
D)  a multinational. 
E)  an orderly marketing agreement.

Question 2

The Eximbank does all of the following except

Accepted Answer

A)  act as an independent agency of the U.S.government. 
B)  assist in financing the exports of American firms. 
C)  cooperate with banks to help exporters offer credit to overseas customers. 
D)  extend and guarantee credit to overseas buyers of American goods. 
E)  guarantee long-term financing for exports. 
A)  act as an independent agency of the U.S.government. 
B)  assist in financing the exports of American firms. 
C)  cooperate with banks to help exporters offer credit to overseas customers. 
D)  extend and guarantee credit to overseas buyers of American goods. 
E)  guarantee long-term financing for exports.

Question 3

What was the General Agreement on Tariffs and Trade (GATT)? What was its primary objective?

Accepted Answer

The General Agreement on Tariffs and Tra

Question 4

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 5

China is trying to develop its international trade in electronic components, but it lacks the money to be successful.From whom should China seek assistance?

Accepted Answer

A)  the International Monetary Fund 
B)  the Eximbank 
C)  the United States 
D)  the Federal Reserve 
E)  the Development Bank for Emerging Economies 
A)  the International Monetary Fund 
B)  the Eximbank 
C)  the United States 
D)  the Federal Reserve 
E)  the Development Bank for Emerging Economies

Question 6

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 7

What are the major sources of export assistance from the federal government?

Accepted Answer

The federal government of the United Sta

Question 8

Memories Forever Scrapbooking Company is interested in global expansion but does not want to make a large financial commitment.Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Memories Forever name.This is a(n) ____ agreement.

Accepted Answer

A)  exporting 
B)  strategic alliance 
C)  licensing 
D)  countertrade 
E)  bill of lading 
A)  exporting 
B)  strategic alliance 
C)  licensing 
D)  countertrade 
E)  bill of lading

Question 9

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

Accepted Answer

A)  It has a comparative advantage in wine production. 
B)  It has a comparative advantage in timber and oil production. 
C)  It has an absolute advantage in the production of wine. 
D)  It has an absolute advantage in timber and oil production. 
E)  It has no comparative or absolute advantages. 
A)  It has a comparative advantage in wine production. 
B)  It has a comparative advantage in timber and oil production. 
C)  It has an absolute advantage in the production of wine. 
D)  It has an absolute advantage in timber and oil production. 
E)  It has no comparative or absolute advantages.

Question 10

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 11

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

Accepted Answer

A) True 
 B)False

Question 12

What are the most frequently cited reasons for restricting trade? How valid are these reasons? Explain.

Accepted Answer

The most frequently cited reasons for re

Question 13

The IDB, ADB, and EBRD are all examples of _____.

Accepted Answer

A)  eximbanks 
B)  foreign banks 
C)  economic communities 
D)  world trade organizations 
E)  multilateral development banks 
A)  eximbanks 
B)  foreign banks 
C)  economic communities 
D)  world trade organizations 
E)  multilateral development banks

Question 14

The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's _____.

Accepted Answer

A)  trade deficit 
B)  balance of payments 
C)  unfavorable balance 
D)  balance of trade 
E)  favorable balance 
A)  trade deficit 
B)  balance of payments 
C)  unfavorable balance 
D)  balance of trade 
E)  favorable balance

Question 15

Which is the largest emerging Asian market?

Accepted Answer

A)  Japan 
B)  Indonesia 
C)  Korea 
D)  Malaysia 
E)  China 
A)  Japan 
B)  Indonesia 
C)  Korea 
D)  Malaysia 
E)  China

Question 16

Trade restrictions usually have no immediate or long-term economic consequences.

Accepted Answer

A) True 
 B)False

Question 17

Nordstrom's sells designer suits made in Italy in its stores in the United States.Nordstrom's is ____ these suits.

Accepted Answer

A)  exporting 
B)  importing 
C)  trading 
D)  dumping 
E)  taxing 
A)  exporting 
B)  importing 
C)  trading 
D)  dumping 
E)  taxing

Question 18

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

Accepted Answer

A) True 
 B)False

Question 19

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Accepted Answer

A)  decreasing the trade deficit. 
B)  being disloyal and unpatriotic. 
C)  contributing to the negative balance of payments. 
D)  buying American-made goods. 
E)  buying American-produced services. 
A)  decreasing the trade deficit. 
B)  being disloyal and unpatriotic. 
C)  contributing to the negative balance of payments. 
D)  buying American-made goods. 
E)  buying American-produced services.

Question 20

Which bank was established in 1991 to encourage reconstruction and development in the eastern and central European countries?

Accepted Answer

A)  the Eximbank 
B)  the Bank of America 
C)  the European Bank for Reconstruction and Development 
D)  the Inter-American Development Bank 
E)  the International Monetary Fund 
A)  the Eximbank 
B)  the Bank of America 
C)  the European Bank for Reconstruction and Development 
D)  the Inter-American Development Bank 
E)  the International Monetary Fund

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

The Eximbank does all of the following except

What was the General Agreement on Tariffs and Trade (GATT)? What was its primary objective?

A trading company

China is trying to develop its international trade in electronic components, but it lacks the money to be successful.From whom should China seek assistance?

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

What are the major sources of export assistance from the federal government?

Memories Forever Scrapbooking Company is interested in global expansion but does not want to make a large financial commitment.Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Memories Forever name.This is a(n) ____ agreement.

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

What are the most frequently cited reasons for restricting trade? How valid are these reasons? Explain.

The IDB, ADB, and EBRD are all examples of _____.

The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's _____.

Which is the largest emerging Asian market?

Trade restrictions usually have no immediate or long-term economic consequences.

Nordstrom's sells designer suits made in Italy in its stores in the United States.Nordstrom's is ____ these suits.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Which bank was established in 1991 to encourage reconstruction and development in the eastern and central European countries?

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

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

The Eximbank does all of the following except

What was the General Agreement on Tariffs and Trade (GATT)? What was its primary objective?

A trading company

China is trying to develop its international trade in electronic components, but it lacks the money to be successful.From whom should China seek assistance?

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

What are the major sources of export assistance from the federal government?

Memories Forever Scrapbooking Company is interested in global expansion but does not want to make a large financial commitment.Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Memories Forever name.This is a(n) ____ agreement.

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

What are the most frequently cited reasons for restricting trade? How valid are these reasons? Explain.

The IDB, ADB, and EBRD are all examples of _____.

The total flow of money into a country less the total flow of money out of the country over some period of time is called the country's _____.

Which is the largest emerging Asian market?

Trade restrictions usually have no immediate or long-term economic consequences.

Nordstrom's sells designer suits made in Italy in its stores in the United States.Nordstrom's is ____ these suits.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Which bank was established in 1991 to encourage reconstruction and development in the eastern and central European countries?

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