Question 1

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Accepted Answer

A)  Licensing 
B)  Exporting 
C)  Joint venture 
D)  Countertrade 
E)  Strategic alliance 
A)  Licensing 
B)  Exporting 
C)  Joint venture 
D)  Countertrade 
E)  Strategic alliance

Question 2

A tax that is levied on a foreign product entering a country is called an export tariff.

Accepted Answer

A) True 
 B)False

Question 3

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Jackie has been reading about international trade and that one nation has the ability to produce a specific product more efficiently than any other nation.She and her friend,Allie,are required to create a PowerPoint presentation for their business class about international trade.Jackie can create animated PowerPoint presentations that clearly and precisely convey the message they need to make,but in a light and entertaining fashion.She is not good at public speaking.Allie is an excellent public speaker and can create equally excellent PowerPoints.Both girls have homework for other classes to do and agree to divide the work-Jackie will create the PowerPoint and Allie will do the verbal and written part of the presentation.What advantage does Allie have over Jackie in making presentations?

Accepted Answer

A)  Cooperative advantage 
B)  Absolute advantage 
C)  Comparative advantage 
D)  Relative advantage 
A)  Cooperative advantage 
B)  Absolute advantage 
C)  Comparative advantage 
D)  Relative advantage

Question 6

Landfall Service Landfall 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.Landfall 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 Landfall Service products due to the government wanting a piece of the pie.Landfall Service initially thought that these taxes were unfair because it was being singled out.However,after Landfall 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 Landfall Service.Landfall Service must have contacted which of these organizations to mediate regarding unfair treatment by foreign governments?

Accepted Answer

A)  COPPA 
B)  GATT 
C)  WTO 
D)  EU 
E)  OPEC 
A)  COPPA 
B)  GATT 
C)  WTO 
D)  EU 
E)  OPEC

Question 7

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Mexico is experiencing balance-of-payments deficits 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 Export-Import Bank of the United States.. 
D)  the IMF. 
E)  the World Bank. 
A)  the Export-Import Bank of the United States. 
B)  a multilateral development bank. 
C)  the Export-Import Bank of the United States.. 
D)  the IMF. 
E)  the World Bank.

Question 10

Mention some of the most frequently cited reasons for restricting trade.

Accepted Answer

In addition to political reasons for tra

Question 11

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft,the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Accepted Answer

A)  OPEC 
B)  IMF 
C)  WTO 
D)  EEC 
E)  LAFTA 
A)  OPEC 
B)  IMF 
C)  WTO 
D)  EEC 
E)  LAFTA

Question 12

Because it has not been around long enough to establish itself,the Russian automobile industry could be classified as a(n)

Accepted Answer

A)  hopeless industry. 
B)  soft industry. 
C)  infant industry. 
D)  protected industry. 
E)  toddler industry. 
A)  hopeless industry. 
B)  soft industry. 
C)  infant industry. 
D)  protected industry. 
E)  toddler industry.

Question 13

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 14

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

Accepted Answer

A) True 
 B)False

Question 15

The IDB,ADB,and EBRD are all examples of

Accepted Answer

A)  community banks. 
B)  foreign banks. 
C)  economic communities. 
D)  world trade organizations. 
E)  multilateral development banks. 
A)  community banks. 
B)  foreign banks. 
C)  economic communities. 
D)  world trade organizations. 
E)  multilateral development banks.

Question 16

What are nontariff barriers? How do nontariff barriers restrict international trade?

Accepted Answer

A nontariff barrier is a nontax measure

Question 17

Define tariff.What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

Accepted Answer

A tariff,also known as an import duty,is

Question 18

At present,the United States has an embargo against North Korea because

Accepted Answer

A)  North Korean products are too difficult to use. 
B)  products from North Korea are in higher demand than American-made products. 
C)  North Korea has an embargo on American products. 
D)  North Korea will not adopt a capitalist government. 
E)  the two countries have extremely poor political relations. 
A)  North Korean products are too difficult to use. 
B)  products from North Korea are in higher demand than American-made products. 
C)  North Korea has an embargo on American products. 
D)  North Korea will not adopt a capitalist government. 
E)  the two countries have extremely poor political relations.

Question 19

The United States wants to limit the amount of dollars that another country can obtain.The best way to accomplish this is to

Accepted Answer

A)  impose an import duty. 
B)  establish a foreign-exchange control. 
C)  declare an embargo. 
D)  set an import quota. 
E)  impose an export duty. 
A)  impose an import duty. 
B)  establish a foreign-exchange control. 
C)  declare an embargo. 
D)  set an import quota. 
E)  impose an export duty.

Question 20

What is an economic community? Describe major international economic communities.

Accepted Answer

An economic community is an organization

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

A tax that is levied on a foreign product entering a country is called an export tariff.

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

The Export-Import Bank of the United States

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

A trading company

Mexico is experiencing balance-of-payments deficits and is seeking financial support.Mexico probably should seek assistance from

Mention some of the most frequently cited reasons for restricting trade.

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft,the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Because it has not been around long enough to establish itself,the Russian automobile industry could be classified as a(n)

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

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

The IDB,ADB,and EBRD are all examples of

What are nontariff barriers? How do nontariff barriers restrict international trade?

Define tariff.What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

At present,the United States has an embargo against North Korea because

The United States wants to limit the amount of dollars that another country can obtain.The best way to accomplish this is to

What is an economic community? Describe major international economic communities.

Exploring the World of Business and Economics

Ethics and Social Responsibility in 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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters

Exam 3: Global Business

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

A tax that is levied on a foreign product entering a country is called an export tariff.

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

The Export-Import Bank of the United States

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

A trading company

Mexico is experiencing balance-of-payments deficits and is seeking financial support.Mexico probably should seek assistance from

Mention some of the most frequently cited reasons for restricting trade.

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft,the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Because it has not been around long enough to establish itself,the Russian automobile industry could be classified as a(n)

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

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

The IDB,ADB,and EBRD are all examples of

What are nontariff barriers? How do nontariff barriers restrict international trade?

Define tariff.What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

At present,the United States has an embargo against North Korea because

The United States wants to limit the amount of dollars that another country can obtain.The best way to accomplish this is to

What is an economic community? Describe major international economic communities.

Exploring the World of Business and Economics

Ethics and Social Responsibility in 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

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters