Question 1

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

Accepted Answer

A)  World Bank. 
B)  Export-Import Bank of the World. 
C)  African Development Bank. 
D)  International Monetary Fund. 
E)  Multilateral Development Bank of Central and South America. 
A)  World Bank. 
B)  Export-Import Bank of the World. 
C)  African Development Bank. 
D)  International Monetary Fund. 
E)  Multilateral Development Bank of Central and South America.

Question 2

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

Accepted Answer

Trading companies are businesses that sp

Question 3

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as

Accepted Answer

A)  exporting. 
B)  licensing. 
C)  direct investment. 
D)  manufacturing in foreign countries. 
E)  none of the above. 
A)  exporting. 
B)  licensing. 
C)  direct investment. 
D)  manufacturing in foreign countries. 
E)  none of the above.

Question 4

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

Accepted Answer

A)  embargos. 
B)  currency devaluations. 
C)  import quotas. 
D)  quality import restrictions. 
E)  bureaucratic red tape. 
A)  embargos. 
B)  currency devaluations. 
C)  import quotas. 
D)  quality import restrictions. 
E)  bureaucratic red tape.

Question 5

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Accepted Answer

A)  Japan would have a comparative advantage in electronics manufacturing. 
B)  Japan would have a positive balance of trade. 
C)  The United States would have a comparative advantage in electronics. 
D)  Japan would have an absolute advantage in electronics production. 
E)  Japan would have a trade deficit with the United States. 
A)  Japan would have a comparative advantage in electronics manufacturing. 
B)  Japan would have a positive balance of trade. 
C)  The United States would have a comparative advantage in electronics. 
D)  Japan would have an absolute advantage in electronics production. 
E)  Japan would have a trade deficit with the United States.

Question 6

General Motors and Ford products produced in the United States can be found in many countries around the world. The United States is ____ these automobiles.

Accepted Answer

A)  tariffing 
B)  importing 
C)  exporting 
D)  releasing 
E)  dumping 
A)  tariffing 
B)  importing 
C)  exporting 
D)  releasing 
E)  dumping

Question 7

A trading company

Accepted Answer

A)  is involved in manufacturing. 
B)  owns assets related to manufacturing. 
C)  does not take title to products. 
D)  provides a link between buyers and sellers in different countries. 
E)  does not perform activities necessary to move the products. 
A)  is involved in manufacturing. 
B)  owns assets related to manufacturing. 
C)  does not take title to products. 
D)  provides a link between buyers and sellers in different countries. 
E)  does not perform activities necessary to move the products.

Question 8

The United States sells industrial supplies and materials to many nations around the world. The United States 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

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Accepted Answer

A)  is importing the lenses. 
B)  is exporting the lenses. 
C)  has an absolute advantage. 
D)  is increasing the balance-of-trade deficit. 
E)  is making a big mistake. 
A)  is importing the lenses. 
B)  is exporting the lenses. 
C)  has an absolute advantage. 
D)  is increasing the balance-of-trade deficit. 
E)  is making a big mistake.

Question 10

When a country imports more than it exports, it has a(n)

Accepted Answer

A)  trade surplus. 
B)  favorable balance of trade. 
C)  favorable exchange role. 
D)  unfavorable balance of trade. 
E)  favorable balance of payments. 
A)  trade surplus. 
B)  favorable balance of trade. 
C)  favorable exchange role. 
D)  unfavorable balance of trade. 
E)  favorable balance of payments.

Question 11

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace. He was further annoyed that he had to pay an artificially high price. When asked for his opinion, Alberto would probably argue

Accepted Answer

A)  against trade restrictions. 
B)  for the trade deficit. 
C)  for exports. 
D)  for tourism. 
E)  against international free trade associations. 
A)  against trade restrictions. 
B)  for the trade deficit. 
C)  for exports. 
D)  for tourism. 
E)  against international free trade associations.

Question 12

The Tokyo Round

Accepted Answer

A)  was completed in 1947. 
B)  resulted in 50 percent tariff cuts. 
C)  was implemented over a fifteen-year period. 
D)  increased nontariff barriers. 
E)  eased import quotas and unrealistic quality standards for imports. 
A)  was completed in 1947. 
B)  resulted in 50 percent tariff cuts. 
C)  was implemented over a fifteen-year period. 
D)  increased nontariff barriers. 
E)  eased import quotas and unrealistic quality standards for imports.

Question 13

The World Trade Organization was created by the

Accepted Answer

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

Question 14

What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.

Accepted Answer

When a country has an absolute advantage

Question 15

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes to expand overseas. The company managers have been contemplating the best way to enter the foreign market. At first, the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty. The managers recognized, however, that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market. As such, the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.
After all the research was completed, the senior managers realized that they wanted to export their product. The managers decided that the transport carrier would notify them when the merchandise was shipped. This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

Accepted Answer

A)  GATT 
B)  Trade Information Center 
C)  World Trade Organization 
D)  U.S. Export Assistance Centers 
E)  U.S. and Foreign Commercial Services 
A)  GATT 
B)  Trade Information Center 
C)  World Trade Organization 
D)  U.S. Export Assistance Centers 
E)  U.S. and Foreign Commercial Services

Question 16

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Accepted Answer

A)  Multilateral development bank 
B)  Inter-American Development Bank 
C)  European Bank for Reconstruction and Development 
D)  Small Business Administration 
E)  Trade Promotion Coordinating Committee 
A)  Multilateral development bank 
B)  Inter-American Development Bank 
C)  European Bank for Reconstruction and Development 
D)  Small Business Administration 
E)  Trade Promotion Coordinating Committee

Question 17

Describe the major steps in entering international markets.

Accepted Answer

Entering international markets involves

Question 18

Who are the members of NAFTA?

Accepted Answer

A)  The United States, Canada, and Mexico 
B)  Greenland, Iceland, and Canada 
C)  Guatemala, Honduras, and Mexico 
D)  The United States, Mexico, and Japan 
E)  The United States, Canada, and the United Kingdom 
A)  The United States, Canada, and Mexico 
B)  Greenland, Iceland, and Canada 
C)  Guatemala, Honduras, and Mexico 
D)  The United States, Mexico, and Japan 
E)  The United States, Canada, and the United Kingdom

Question 19

Countertrade is an international barter transaction in which

Accepted Answer

A)  goods and services are exchanged for different goods and services. 
B)  one company sells goods and services under the counter. 
C)  the buyers and sellers trade illegally. 
D)  one company manufactures and the other company owns the assets. 
E)  none of the above is correct. 
A)  goods and services are exchanged for different goods and services. 
B)  one company sells goods and services under the counter. 
C)  the buyers and sellers trade illegally. 
D)  one company manufactures and the other company owns the assets. 
E)  none of the above is correct.

Question 20

Mexico is experiencing a balance of payment deficit and is seeking financial support. Mexico probably should seek assistance from

Accepted Answer

A)  the Export-Import Bank of the United States. 
B)  a multilateral development bank. 
C)  the WTO. 
D)  the IMF. 
E)  GATT. 
A)  the Export-Import Bank of the United States. 
B)  a multilateral development bank. 
C)  the WTO. 
D)  the IMF. 
E)  GATT.

Exam 3: A: Exploring Global Business

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

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

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

General Motors and Ford products produced in the United States can be found in many countries around the world. The United States is ____ these automobiles.

A trading company

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

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

When a country imports more than it exports, it has a(n)

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace. He was further annoyed that he had to pay an artificially high price. When asked for his opinion, Alberto would probably argue

The Tokyo Round

The World Trade Organization was created by the

What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Describe the major steps in entering international markets.

Who are the members of NAFTA?

Countertrade is an international barter transaction in which

Mexico is experiencing a balance of payment deficit and is seeking financial support. Mexico probably should seek assistance from

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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