Question 1

Purchasing products or materials in other nations and bringing them into one's own country is

Accepted Answer

A)  trading. 
B)  balancing. 
C)  exporting. 
D)  importing. 
E)  dumping. 
A)  trading. 
B)  balancing. 
C)  exporting. 
D)  importing. 
E)  dumping.

Question 2

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

Accepted Answer

Countertrade refers to a variety of trad

Question 3

When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n)

Accepted Answer

A)  quota. 
B)  devaluation. 
C)  tariff. 
D)  duty. 
E)  embargo. 
A)  quota. 
B)  devaluation. 
C)  tariff. 
D)  duty. 
E)  embargo.

Question 4

Foreign licensing is similar to

Accepted Answer

A)  starting from scratch. 
B)  franchising. 
C)  wholesaling. 
D)  establishing a subsidiary in another country. 
E)  establishing a sales office in a foreign country. 
A)  starting from scratch. 
B)  franchising. 
C)  wholesaling. 
D)  establishing a subsidiary in another country. 
E)  establishing a sales office in a foreign country.

Question 5

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

Question 6

What are different methods of entering international markets? Which methods require the least and the most degree of involvement in international business?

Accepted Answer

Companies can enter international market

Question 7

Balance of payments is a ____ concept than balance of trade.

Accepted Answer

A)  more difficult 
B)  less difficult 
C)  nearly identical 
D)  broader 
E)  narrower 
A)  more difficult 
B)  less difficult 
C)  nearly identical 
D)  broader 
E)  narrower

Question 8

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Accepted Answer

A)  trading company 
B)  strategic alliance 
C)  licensing company 
D)  countertrade agreement 
E)  joint venture 
A)  trading company 
B)  strategic alliance 
C)  licensing company 
D)  countertrade agreement 
E)  joint venture

Question 9

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

Accepted Answer

The federal government of the United Sta

Question 10

How do trade restrictions affect consumers, workers, and the domestic producers of restricted goods?

Accepted Answer

Trade restrictions can have various effe

Question 11

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 12

Another name for an import duty is a(n)

Accepted Answer

A)  tariff. 
B)  embargo. 
C)  devaluation. 
D)  quota. 
E)  limitation. 
A)  tariff. 
B)  embargo. 
C)  devaluation. 
D)  quota. 
E)  limitation.

Question 13

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 14

All of the following are reasons against having trade restrictions except

Accepted Answer

A)  the loss of jobs. 
B)  the misallocation of international resources. 
C)  the restriction of consumers' choices. 
D)  higher prices for consumers. 
E)  the protection of the health of citizens. 
A)  the loss of jobs. 
B)  the misallocation of international resources. 
C)  the restriction of consumers' choices. 
D)  higher prices for consumers. 
E)  the protection of the health of citizens.

Question 15

What is the difference between an absolute advantage and a comparative advantage?

Accepted Answer

Absolute advantage and comparative advan

Question 16

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Accepted Answer

A)  exporting. 
B)  shipping. 
C)  importing. 
D)  expelling. 
E)  dumping. 
A)  exporting. 
B)  shipping. 
C)  importing. 
D)  expelling. 
E)  dumping.

Question 17

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 18

How was the World Trade Organization (WTO) created? Why was it established?

Accepted Answer

The World Trade Organization (WTO) was c

Question 19

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 20

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

Accepted Answer

A)  license 
B)  letter of credit 
C)  bill of lading 
D)  draft 
E)  voucher 
A)  license 
B)  letter of credit 
C)  bill of lading 
D)  draft 
E)  voucher

Exam 3: A: Exploring Global Business

Purchasing products or materials in other nations and bringing them into one's own country is

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

When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n)

Foreign licensing is similar to

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

What are different methods of entering international markets? Which methods require the least and the most degree of involvement in international business?

Balance of payments is a ____ concept than balance of trade.

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

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

How do trade restrictions affect consumers, workers, and the domestic producers of restricted goods?

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

Another name for an import duty is a(n)

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

All of the following are reasons against having trade restrictions except

What is the difference between an absolute advantage and a comparative advantage?

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

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

How was the World Trade Organization (WTO) created? Why was it established?

Which of the following best defines balance of trade?

A ____ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise.

Exploring the World of Business and Economics

A: Being Ethical and Socially Responsible

B: Being Ethical and Socially Responsible

B: 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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