Question 1

Define tariff.What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

Accepted Answer

A tariff is a tax imposed by a governmen

Question 2

What is an economic community? Describe major international economic communities.

Accepted Answer

An economic community is a group of coun

Question 3

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 Italian government imposed on the company?

Accepted Answer

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

Question 4

Which country is the leading export partner of the United States?

Accepted Answer

A)  Japan 
B)  Canada 
C)  Mexico 
D)  United Kingdom 
E)  China 
A)  Japan 
B)  Canada 
C)  Mexico 
D)  United Kingdom 
E)  China

Question 5

Describe the major steps in entering international markets.

Accepted Answer

Entering international markets involves

Question 6

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best defines balance of trade?

Accepted Answer

A)  purchasing products in other countries and bringing them into one's own country 
B)  the total value of a nation's exports minus the total value of its imports over some period of time 
C)  the total flow of money into the country minus the total flow of money out of the country over some period of time 
D)  the ability to specialize in the production of a specific product and trade it for other needed products 
E)  the ability to produce a certain product more efficiently than any other nation 
A)  purchasing products in other countries and bringing them into one's own country 
B)  the total value of a nation's exports minus the total value of its imports over some period of time 
C)  the total flow of money into the country minus the total flow of money out of the country over some period of time 
D)  the ability to specialize in the production of a specific product and trade it for other needed products 
E)  the ability to produce a certain product more efficiently than any other nation

Question 8

When it built production lines in the United States, BMW engaged in what type of international expansion?

Accepted Answer

A)  totally owned facilities 
B)  joint venture 
C)  strategic alliance 
D)  indirect investment 
E)  exporting 
A)  totally owned facilities 
B)  joint venture 
C)  strategic alliance 
D)  indirect investment 
E)  exporting

Question 9

Describe trading companies.What is an important function of trading companies?

Accepted Answer

Trading companies are businesses that sp

Question 10

What is countertrade? Give examples of companies that are engaged in it.

Accepted Answer

Countertrade refers to a variety of trad

Question 11

U.S.exports to developing and newly industrialized countries

Accepted Answer

A)  have remained stable. 
B)  have declined in recent years. 
C)  are on the rise. 
D)  are prohibited by the U.S.government. 
E)  are scheduled to begin in 2009. 
A)  have remained stable. 
B)  have declined in recent years. 
C)  are on the rise. 
D)  are prohibited by the U.S.government. 
E)  are scheduled to begin in 2009.

Question 12

Selling and shipping raw materials or products to other nations is known as exporting.

Accepted Answer

A) True 
 B)False

Question 13

What is the euro? How many nations have adopted the new currency?

Accepted Answer

The euro is the official currency of the

Question 14

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete.This is referred to as _____.

Accepted Answer

A)  exporting 
B)  importing 
C)  an embargo 
D)  dropping 
E)  dumping 
A)  exporting 
B)  importing 
C)  an embargo 
D)  dropping 
E)  dumping

Question 15

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Accepted Answer

A)  infant-industry argument. 
B)  goal of equalizing the nation's balance of payments. 
C)  national self-sufficiency argument. 
D)  goal of protecting the health of citizens. 
E)  goals of retaliating for another nation's trade restrictions. 
A)  infant-industry argument. 
B)  goal of equalizing the nation's balance of payments. 
C)  national self-sufficiency argument. 
D)  goal of protecting the health of citizens. 
E)  goals of retaliating for another nation's trade restrictions.

Question 16

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n) _____.

Accepted Answer

A)  absolute advantage 
B)  comparative advantage 
C)  advantage based on efficient production 
D)  trade deficit 
E)  lot of diamonds 
A)  absolute advantage 
B)  comparative advantage 
C)  advantage based on efficient production 
D)  trade deficit 
E)  lot of diamonds

Question 17

Because Saudi Arabia and Australia have ____ in production of crude oil and petroleum products and wool respectively, Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool.

Accepted Answer

A)  a company advantage 
B)  an absolute advantage 
C)  a comparative advantage 
D)  an effective manufacturing system 
E)  very low labor costs 
A)  a company advantage 
B)  an absolute advantage 
C)  a comparative advantage 
D)  an effective manufacturing system 
E)  very low labor costs

Question 18

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 19

What is the Doha Round? What was the focus of this round of negotiations?

Accepted Answer

The Doha Round refers to the latest roun

Question 20

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Accepted Answer

A)  an overall favorable balance of trade. 
B)  an overall unfavorable balance of trade. 
C)  a favorable balance of trade with Jamaica. 
D)  neither a favorable nor an unfavorable balance of trade with Jamaica. 
E)  an unfavorable balance of trade with Jamaica. 
A)  an overall favorable balance of trade. 
B)  an overall unfavorable balance of trade. 
C)  a favorable balance of trade with Jamaica. 
D)  neither a favorable nor an unfavorable balance of trade with Jamaica. 
E)  an unfavorable balance of trade with Jamaica.

Define tariff.What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

What is an economic community? Describe major international economic communities.

Which country is the leading export partner of the United States?

Describe the major steps in entering international markets.

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Which of the following best defines balance of trade?

When it built production lines in the United States, BMW engaged in what type of international expansion?

Describe trading companies.What is an important function of trading companies?

What is countertrade? Give examples of companies that are engaged in it.

U.S.exports to developing and newly industrialized countries

Selling and shipping raw materials or products to other nations is known as exporting.

What is the euro? How many nations have adopted the new currency?

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete.This is referred to as _____.

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n) _____.

Because Saudi Arabia and Australia have ____ in production of crude oil and petroleum products and wool respectively, Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool.

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

What is the Doha Round? What was the focus of this round of negotiations?

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

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

Define tariff.What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

What is an economic community? Describe major international economic communities.

Which country is the leading export partner of the United States?

Describe the major steps in entering international markets.

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Which of the following best defines balance of trade?

When it built production lines in the United States, BMW engaged in what type of international expansion?

Describe trading companies.What is an important function of trading companies?

What is countertrade? Give examples of companies that are engaged in it.

U.S.exports to developing and newly industrialized countries

Selling and shipping raw materials or products to other nations is known as exporting.

What is the euro? How many nations have adopted the new currency?

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete.This is referred to as _____.

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke.They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive.Their comments are based on the

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n) _____.

Because Saudi Arabia and Australia have ____ in production of crude oil and petroleum products and wool respectively, Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool.

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

What is the Doha Round? What was the focus of this round of negotiations?

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

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