Question 1

One of the consequences of trade restrictions is misallocation of international resources.

Accepted Answer

A) True 
 B)False

Question 2

By definition,every country has a(n)____ advantage in some product.

Accepted Answer

A)  relative 
B)  absolute 
C)  comparative 
D)  superior 
E)  inferior 
A)  relative 
B)  absolute 
C)  comparative 
D)  superior 
E)  inferior

Question 3

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 4

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 5

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Accepted Answer

A) True 
 B)False

Question 6

Because it controls the world's diamond deposits,the DeBeers Consolidated Mines,Ltd.,has a(n)

Accepted Answer

A)  absolute advantage. 
B)  comparative advantage. 
C)  advantage based on efficient production. 
D)  trade deficit. 
E)  lot of diamonds. 
A)  absolute advantage. 
B)  comparative advantage. 
C)  advantage based on efficient production. 
D)  trade deficit. 
E)  lot of diamonds.

Question 7

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.

Question 8

When it built production lines in the United States,BMW engaged in what type of international expansion?

Accepted Answer

A)  Totally owned facilities 
B)  Joint venture 
C)  Strategic alliance 
D)  Indirect investment 
E)  Exporting 
A)  Totally owned facilities 
B)  Joint venture 
C)  Strategic alliance 
D)  Indirect investment 
E)  Exporting

Question 9

Which of the following is a potential drawback of licensing?

Accepted Answer

A)  If quality is compromised,it may reflect poorly on the company providing the license. 
B)  Licensing will provide the original producer with much foreign marketing experience. 
C)  It is a relatively inexpensive way to market your product internationally. 
D)  It is an extremely expensive and highly involved method of international expansion. 
E)  It provides no compensation for the original company. 
A)  If quality is compromised,it may reflect poorly on the company providing the license. 
B)  Licensing will provide the original producer with much foreign marketing experience. 
C)  It is a relatively inexpensive way to market your product internationally. 
D)  It is an extremely expensive and highly involved method of international expansion. 
E)  It provides no compensation for the original company.

Question 10

Despite trade restrictions,international business is

Accepted Answer

A)  moving slowly. 
B)  growing. 
C)  slowing down. 
D)  struggling for survival. 
E)  decreasing. 
A)  moving slowly. 
B)  growing. 
C)  slowing down. 
D)  struggling for survival. 
E)  decreasing.

Question 11

A trading company provides a link between buyers and sellers in different countries.

Accepted Answer

A) True 
 B)False

Question 12

Globalization represents a huge opportunity for

Accepted Answer

A)  all countries--rich or poor. 
B)  the United States. 
C)  Japan. 
D)  China. 
E)  Asia. 
A)  all countries--rich or poor. 
B)  the United States. 
C)  Japan. 
D)  China. 
E)  Asia.

Question 13

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 14

The payments portion of the balance of payments--that is,payments made by the United States--does not include

Accepted Answer

A)  exports. 
B)  imports. 
C)  military spending. 
D)  foreign aid. 
E)  investments. 
A)  exports. 
B)  imports. 
C)  military spending. 
D)  foreign aid. 
E)  investments.

Question 15

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

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

Question 16

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

Question 17

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 18

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 19

Thomas Bernerd,Inc.Thomas 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 Thomas Bernerd,Inc.When the transport carriers notify the exporter that the product has been shipped,they use a

Accepted Answer

A)  bill of lading. 
B)  receipt. 
C)  letter of credit. 
D)  draft. 
E)  shipping verification. 
A)  bill of lading. 
B)  receipt. 
C)  letter of credit. 
D)  draft. 
E)  shipping verification.

Question 20

Georgiaowns a medium-sized business in the United States.Approximately how likely is it that her company exports?

Accepted Answer

A)  It is extremely likely because almost all U.S.companies export their products and services to foreign countries. 
B)  It is quite likely because about 75 percent of all companies in the United States are now exporters due to the growth of the Internet. 
C)  Roughly half of U.S.companies export products and services,so there is about a 50 percent chance that Georgia's company exports. 
D)  About one-third of the companies in the United States export to foreign countries,therefore Georgia's company has about a 33 percent chance of being an exporter. 
E)  Despite use of the Internet,exporting is still mostly done by large corporations,so Georgia's company is unlikely to export. 
A)  It is extremely likely because almost all U.S.companies export their products and services to foreign countries. 
B)  It is quite likely because about 75 percent of all companies in the United States are now exporters due to the growth of the Internet. 
C)  Roughly half of U.S.companies export products and services,so there is about a 50 percent chance that Georgia's company exports. 
D)  About one-third of the companies in the United States export to foreign countries,therefore Georgia's company has about a 33 percent chance of being an exporter. 
E)  Despite use of the Internet,exporting is still mostly done by large corporations,so Georgia's company is unlikely to export.

One of the consequences of trade restrictions is misallocation of international resources.

By definition,every country has a(n)____ advantage in some product.

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

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Because it controls the world's diamond deposits,the DeBeers Consolidated Mines,Ltd.,has a(n)

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

When it built production lines in the United States,BMW engaged in what type of international expansion?

Which of the following is a potential drawback of licensing?

Despite trade restrictions,international business is

A trading company provides a link between buyers and sellers in different countries.

Globalization represents a huge opportunity for

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

The payments portion of the balance of payments--that is,payments made by the United States--does not include

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

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

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)

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

Georgiaowns a medium-sized business in the United States.Approximately how likely is it that her company exports?

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

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Exam 3: Global Business

One of the consequences of trade restrictions is misallocation of international resources.

By definition,every country has a(n)____ advantage in some product.

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

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Because it controls the world's diamond deposits,the DeBeers Consolidated Mines,Ltd.,has a(n)

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

When it built production lines in the United States,BMW engaged in what type of international expansion?

Which of the following is a potential drawback of licensing?

Despite trade restrictions,international business is

A trading company provides a link between buyers and sellers in different countries.

Globalization represents a huge opportunity for

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

The payments portion of the balance of payments--that is,payments made by the United States--does not include

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

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

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)

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

Georgiaowns a medium-sized business in the United States.Approximately how likely is it that her company exports?

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