Question 1

"Devaluation increases the cost of foreign goods, while it decreases the cost of domestic goods of foreign firms." Explain with an example.

Accepted Answer

Devaluation refers to the deliberate dec

Question 2

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

Accepted Answer

A)  import duty. 
B)  import deficit. 
C)  trade embargo. 
D)  import tariff. 
E)  import quota. 
A)  import duty. 
B)  import deficit. 
C)  trade embargo. 
D)  import tariff. 
E)  import quota.

Question 3

How does a joint venture help a U.S. firm enter international markets?

Accepted Answer

A joint venture can help a U.S. firm ent

Question 4

Which of the following Asian countries has the leading economic growth?

Accepted Answer

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

Question 5

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida. These tourists are

Accepted Answer

A)  contributing to the United States' deficit balance of payments. 
B)  helping increase the balance of payments for Japan. 
C)  exporting products and services back to Japan. 
D)  further decreasing the United States' balance of payments. 
E)  helping the United States' balance of payments. 
A)  contributing to the United States' deficit balance of payments. 
B)  helping increase the balance of payments for Japan. 
C)  exporting products and services back to Japan. 
D)  further decreasing the United States' balance of payments. 
E)  helping the United States' balance of payments.

Question 6

If the United States and Japan cannot settle their trade disputes on their own, they probably should settle them through the

Accepted Answer

A)  Tokyo Round. 
B)  Kennedy Round. 
C)  Uruguay Round. 
D)  WTO. 
E)  United Nations. 
A)  Tokyo Round. 
B)  Kennedy Round. 
C)  Uruguay Round. 
D)  WTO. 
E)  United Nations.

Question 7

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

Accepted Answer

A)  import quota. 
B)  currency devaluation. 
C)  prohibition. 
D)  embargo. 
E)  dumping restriction. 
A)  import quota. 
B)  currency devaluation. 
C)  prohibition. 
D)  embargo. 
E)  dumping restriction.

Question 8

NAFTA was built on the

Accepted Answer

A)  CAFTA model. 
B)  EU model. 
C)  Canadian Free Trade Agreement. 
D)  model of GATT. 
E)  Commonwealth of Independent States model. 
A)  CAFTA model. 
B)  EU model. 
C)  Canadian Free Trade Agreement. 
D)  model of GATT. 
E)  Commonwealth of Independent States model.

Question 9

American automakers are concerned about the availability of so many foreign cars to U.S. consumers, and that their chances to sell their own cars are limited. To directly correct the situation, they encourage Congress to impose a(n)

Accepted Answer

A)  export quota. 
B)  export duty. 
C)  import quota. 
D)  tariff. 
E)  import duty. 
A)  export quota. 
B)  export duty. 
C)  import quota. 
D)  tariff. 
E)  import duty.

Question 10

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

Accepted Answer

The balance of payments (BOP) is a much

Question 11

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 12

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is the new country interested in receiving?

Accepted Answer

A)  Free trade 
B)  Importation/exportation 
C)  The Tokyo Round 
D)  Foreign-exchange control 
E)  Most-favored-nation status 
A)  Free trade 
B)  Importation/exportation 
C)  The Tokyo Round 
D)  Foreign-exchange control 
E)  Most-favored-nation status

Question 13

If Procter & Gamble, a U.S. leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a disinfectant line of ecologically friendly laundry detergent, the partnership would be a(n)

Accepted Answer

A)  corporation. 
B)  joint venture. 
C)  monopoly. 
D)  licensing agreement. 
E)  international alliance. 
A)  corporation. 
B)  joint venture. 
C)  monopoly. 
D)  licensing agreement. 
E)  international alliance.

Question 14

What are multilateral development banks? What is their purpose? Who supports these banks?

Accepted Answer

Multilateral development banks are finan

Question 15

The Association of Southeast Asian Nations

Accepted Answer

A)  was organized in 1980. 
B)  is known as the Free Market. 
C)  did not eliminate any restrictions on trade. 
D)  has agreed to create a free trade area. 
E)  was dismantled in 1984. 
A)  was organized in 1980. 
B)  is known as the Free Market. 
C)  did not eliminate any restrictions on trade. 
D)  has agreed to create a free trade area. 
E)  was dismantled in 1984.

Question 16

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

Accepted Answer

A)  The Export-Import Bank of the United States 
B)  The Asian Development Bank 
C)  The International Monetary Fund 
D)  The Inter-American Development Bank 
E)  The Multilateral Development Bank 
A)  The Export-Import Bank of the United States 
B)  The Asian Development Bank 
C)  The International Monetary Fund 
D)  The Inter-American Development Bank 
E)  The Multilateral Development Bank

Question 17

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

Accepted Answer

A)  WTO. 
B)  economic community. 
C)  cartel. 
D)  multinational. 
E)  orderly marketing agreement. 
A)  WTO. 
B)  economic community. 
C)  cartel. 
D)  multinational. 
E)  orderly marketing agreement.

Question 18

A favorable balance of payments means that

Accepted Answer

A)  exports exceed imports. 
B)  imports exceed exports. 
C)  payments exceed trade. 
D)  exports and other payments exceed imports and other receipts. 
E)  total receipts exceed total payments. 
A)  exports exceed imports. 
B)  imports exceed exports. 
C)  payments exceed trade. 
D)  exports and other payments exceed imports and other receipts. 
E)  total receipts exceed total payments.

Question 19

Which of the following countries is not part of CAFTA?

Accepted Answer

A)  Guatemala 
B)  Honduras 
C)  Nicaragua 
D)  Mexico 
E)  El Salvador 
A)  Guatemala 
B)  Honduras 
C)  Nicaragua 
D)  Mexico 
E)  El Salvador

Question 20

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

Accepted Answer

A)  auction agreement. 
B)  countertrade. 
C)  strategic transaction. 
D)  licensing agreement. 
E)  free-trade agreement. 
A)  auction agreement. 
B)  countertrade. 
C)  strategic transaction. 
D)  licensing agreement. 
E)  free-trade agreement.

Exam 3: A: Exploring Global Business

"Devaluation increases the cost of foreign goods, while it decreases the cost of domestic goods of foreign firms." Explain with an example.

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

How does a joint venture help a U.S. firm enter international markets?

Which of the following Asian countries has the leading economic growth?

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida. These tourists are

If the United States and Japan cannot settle their trade disputes on their own, they probably should settle them through the

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

NAFTA was built on the

American automakers are concerned about the availability of so many foreign cars to U.S. consumers, and that their chances to sell their own cars are limited. To directly correct the situation, they encourage Congress to impose a(n)

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

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?

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is the new country interested in receiving?

If Procter & Gamble, a U.S. leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a disinfectant line of ecologically friendly laundry detergent, the partnership would be a(n)

What are multilateral development banks? What is their purpose? Who supports these banks?

The Association of Southeast Asian Nations

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

A favorable balance of payments means that

Which of the following countries is not part of CAFTA?

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

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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