Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

When the United States recently imported $2,661 billion in merchandise and services and exported $2,103 billion, it had a trade deficit.

Accepted Answer

A) True 
 B)False

Question 4

A tariff is a tax levied on a particular foreign product entering a country.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Accepted Answer

A) True 
 B)False

Question 7

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

Accepted Answer

A) True 
 B)False

Question 8

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 nation's balance of trade.

Accepted Answer

A) True 
 B)False

Question 9

Balance of payments is a much broader concept than balance of trade.

Accepted Answer

A) True 
 B)False

Question 10

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 11

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

Accepted Answer

A) True 
 B)False

Question 12

If a country imports more than it exports, its balance of trade is said to be favorable.

Accepted Answer

A) True 
 B)False

Question 13

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 16

The United States has consistently enjoyed a trade surplus.

Accepted Answer

A) True 
 B)False

Question 17

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Accepted Answer

A) True 
 B)False

Question 18

The TPP was agreed upon in the 1970s by a small group of Central American countries.

Accepted Answer

A) True 
 B)False

Question 19

Devaluation increases the cost of foreign goods, while it decreases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 3: B: Exploring Global Business

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

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

When the United States recently imported $2,661 billion in merchandise and services and exported $2,103 billion, it had a trade deficit.

A tariff is a tax levied on a particular foreign product entering a country.

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

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

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 nation's balance of trade.

Balance of payments is a much broader concept than balance of trade.

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

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

If a country imports more than it exports, its balance of trade is said to be favorable.

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

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

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

The United States has consistently enjoyed a trade surplus.

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

The TPP was agreed upon in the 1970s by a small group of Central American countries.

Devaluation increases the cost of foreign goods, while it decreases the cost of domestic goods to foreign firms.

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

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

A: Exploring Global Business

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

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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