Question 1

In 1967, several Asian countries 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)  the Association of Southeast Asian Nations. 
D)  a multinational. 
E)  an orderly marketing agreement. 
A)  a GATT. 
B)  the European Union. 
C)  the Association of Southeast Asian Nations. 
D)  a multinational. 
E)  an orderly marketing agreement.

Question 2

Soccer to the Masses 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 Soccer to the Masses 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 3

An import duty has the effect of all of the following except

Accepted Answer

A)  reducing the number of units exported. 
B)  raising the price of the product in the importing nation. 
C)  reducing the number of units imported. 
D)  creating a trade restriction. 
E)  protecting a domestic industry from competition. 
A)  reducing the number of units exported. 
B)  raising the price of the product in the importing nation. 
C)  reducing the number of units imported. 
D)  creating a trade restriction. 
E)  protecting a domestic industry from competition.

Question 4

Which of the following countries is not part of the Trans-Pacific Partnership?

Accepted Answer

A)  Australia 
B)  Brazil 
C)  Chile 
D)  Malaysia 
E)  Peru 
A)  Australia 
B)  Brazil 
C)  Chile 
D)  Malaysia 
E)  Peru

Question 5

How has international trade changed since the end of World War II?

Accepted Answer

A)  Trade across national borders has decreased since its peak during the early to mid-1900s. 
B)  International trade has increased steadily since this period of time. 
C)  The amount of international trading has remained relatively stable since this time. 
D)  International trade has become completely unrestricted. 
E)  International trading has become much more heavily regulated and restricted by all countries. 
A)  Trade across national borders has decreased since its peak during the early to mid-1900s. 
B)  International trade has increased steadily since this period of time. 
C)  The amount of international trading has remained relatively stable since this time. 
D)  International trade has become completely unrestricted. 
E)  International trading has become much more heavily regulated and restricted by all countries.

Question 6

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Accepted Answer

A)  strategic alliance. 
B)  licensing agreement. 
C)  exporting agency. 
D)  trading company. 
E)  countertrade. 
A)  strategic alliance. 
B)  licensing agreement. 
C)  exporting agency. 
D)  trading company. 
E)  countertrade.

Question 7

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Accepted Answer

The Kennedy, the Tokyo, Uruguay, and the

Question 8

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Accepted Answer

A)  dumping. 
B)  tariffing. 
C)  importing. 
D)  exporting. 
E)  deficit trading. 
A)  dumping. 
B)  tariffing. 
C)  importing. 
D)  exporting. 
E)  deficit trading.

Question 9

Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n)

Accepted Answer

A)  import duty. 
B)  nonmonetary restriction. 
C)  embargo. 
D)  restriction of trade. 
E)  nontariff barrier. 
A)  import duty. 
B)  nonmonetary restriction. 
C)  embargo. 
D)  restriction of trade. 
E)  nontariff barrier.

Question 10

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Accepted Answer

A)  comparative advantage. 
B)  trade deficit. 
C)  balance of payments. 
D)  negative output. 
E)  positive balance of trade. 
A)  comparative advantage. 
B)  trade deficit. 
C)  balance of payments. 
D)  negative output. 
E)  positive balance of trade.

Question 11

The Export-Import Bank of the United States

Accepted Answer

A)  is owned and operated by Fortune 500 companies. 
B)  is an independent agency of the U.S. government. 
C)  aids foreign nations experiencing balance-of-payments problems. 
D)  guarantees credit to American buyers of foreign goods. 
E)  closed its operations in 1991. 
A)  is owned and operated by Fortune 500 companies. 
B)  is an independent agency of the U.S. government. 
C)  aids foreign nations experiencing balance-of-payments problems. 
D)  guarantees credit to American buyers of foreign goods. 
E)  closed its operations in 1991.

Question 12

XYZ Company wants to explore commercial opportunities in India and is seeking economic and export-promotion information. The best possibility would be the

Accepted Answer

A)  Advocacy Center. 
B)  International Trade Administration. 
C)  National Trade Data Bank. 
D)  U.S. and Foreign Commercial Services. 
E)  Trade Information Center. 
A)  Advocacy Center. 
B)  International Trade Administration. 
C)  National Trade Data Bank. 
D)  U.S. and Foreign Commercial Services. 
E)  Trade Information Center.

Question 13

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. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.

Accepted Answer

A)  total 
B)  relative 
C)  comparative 
D)  proportional 
E)  absolute 
A)  total 
B)  relative 
C)  comparative 
D)  proportional 
E)  absolute

Question 14

Ginger decides to take her small company international. Which of the following would most likely be Ginger's and other small business owners' first step in going global?

Accepted Answer

A)  She is likely to form a joint venture with a company in the foreign country she is interested in. 
B)  She will advertise her products on the Internet and export them worldwide. 
C)  She will open and run a new facility in the foreign country she wants to expand to. 
D)  She will form a strategic alliance to create a competitive advantage worldwide. 
E)  She will grow her company into a multinational firm to compete around the world. 
A)  She is likely to form a joint venture with a company in the foreign country she is interested in. 
B)  She will advertise her products on the Internet and export them worldwide. 
C)  She will open and run a new facility in the foreign country she wants to expand to. 
D)  She will form a strategic alliance to create a competitive advantage worldwide. 
E)  She will grow her company into a multinational firm to compete around the world.

Question 15

An unfavorable balance of trade occurs when

Accepted Answer

A)  exports are greater than imports. 
B)  imports are greater than exports. 
C)  the total outflow of money is greater than the total inflow of money. 
D)  the total outflow of money is less than the total inflow of money. 
E)  exports equal imports. 
A)  exports are greater than imports. 
B)  imports are greater than exports. 
C)  the total outflow of money is greater than the total inflow of money. 
D)  the total outflow of money is less than the total inflow of money. 
E)  exports equal imports.

Question 16

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 of the United States. 
B)  contributing to the positive balance of payments of the United States. 
C)  contributing to the negative balance of payments of the United States. 
D)  buying imported goods. 
E)  contributing to the GDP of the United States. 
A)  decreasing the trade deficit of the United States. 
B)  contributing to the positive balance of payments of the United States. 
C)  contributing to the negative balance of payments of the United States. 
D)  buying imported goods. 
E)  contributing to the GDP of the United States.

Question 17

The United States is a member of the ____, which is the successor to GATT.

Accepted Answer

A)  World Trade Organization 
B)  North American Free Trade Agreement 
C)  United Nations 
D)  European Union 
E)  Kennedy Round 
A)  World Trade Organization 
B)  North American Free Trade Agreement 
C)  United Nations 
D)  European Union 
E)  Kennedy Round

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 a(n)

Accepted Answer

A)  economic community. 
B)  free trade association. 
C)  common market. 
D)  international alliance. 
E)  none of the above. 
A)  economic community. 
B)  free trade association. 
C)  common market. 
D)  international alliance. 
E)  none of the above.

Question 19

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Accepted Answer

A)  shows that to foreigner purchasers, the price of the china is the same before and after the devaluation. 
B)  makes the china less attractive to foreigner purchasers. 
C)  makes the china more attractive to foreign purchasers. 
D)  is irrelevant to foreign purchasers. 
E)  proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2. That way, they could get even more for their dollars. 
A)  shows that to foreigner purchasers, the price of the china is the same before and after the devaluation. 
B)  makes the china less attractive to foreigner purchasers. 
C)  makes the china more attractive to foreign purchasers. 
D)  is irrelevant to foreign purchasers. 
E)  proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2. That way, they could get even more for their dollars.

Question 20

Critics of NAFTA maintain that NAFTA

Accepted Answer

A)  has benefited companies in all three countries. 
B)  has created high-paying export-related jobs. 
C)  does nothing to help the environment. 
D)  helps the agricultural sector. 
E)  has resulted in increased sales and new partnerships. 
A)  has benefited companies in all three countries. 
B)  has created high-paying export-related jobs. 
C)  does nothing to help the environment. 
D)  helps the agricultural sector. 
E)  has resulted in increased sales and new partnerships.

Exam 3: A: Exploring Global Business

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Soccer to the Masses 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 Soccer to the Masses name. This is a(n) ____ agreement.

An import duty has the effect of all of the following except

Which of the following countries is not part of the Trans-Pacific Partnership?

How has international trade changed since the end of World War II?

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n)

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

The Export-Import Bank of the United States

XYZ Company wants to explore commercial opportunities in India and is seeking economic and export-promotion information. The best possibility would be the

Ginger decides to take her small company international. Which of the following would most likely be Ginger's and other small business owners' first step in going global?

An unfavorable balance of trade occurs when

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

The United States is a member of the ____, which is the successor to GATT.

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 a(n)

Suppose a set of English bone china costing 1,000 pounds costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Critics of NAFTA maintain that NAFTA

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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