Question 1

When Fabiola 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. 
B)  being disloyal and unpatriotic. 
C)  contributing to the negative balance of payments. 
D)  buying American-made goods. 
E)  buying American-produced services. 
A)  decreasing the trade deficit. 
B)  being disloyal and unpatriotic. 
C)  contributing to the negative balance of payments. 
D)  buying American-made goods. 
E)  buying American-produced services.

Question 2

When an Indian importing firm wants to import U.S.-made products,it must first secure permission and dollars from the Reserve Bank of India.This type of restriction is known as a

Accepted Answer

A)  currency devaluation. 
B)  foreign-exchange control. 
C)  negative foreign exchange. 
D)  trade embargo. 
E)  quota. 
A)  currency devaluation. 
B)  foreign-exchange control. 
C)  negative foreign exchange. 
D)  trade embargo. 
E)  quota.

Question 3

ABC Company wants to explore commercial opportunities in India and needs to consult with a country expert.ABC Company should consider seeking assistance from the

Accepted Answer

A)  Advocacy Center. 
B)  International Trade Administration. 
C)  National Trade Data Bank. 
D)  Trade Promotion Coordinating Committee. 
E)  Export Legal Assistance Network. 
A)  Advocacy Center. 
B)  International Trade Administration. 
C)  National Trade Data Bank. 
D)  Trade Promotion Coordinating Committee. 
E)  Export Legal Assistance Network.

Question 4

Ford Motor Company,Mazda Motor Corporation,and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988.The new company's heating and cooling units may also be used in Ford's cars.

Accepted Answer

A)  sales branch 
B)  joint venture 
C)  subsidiary 
D)  licensing agreement 
E)  sole proprietorship 
A)  sales branch 
B)  joint venture 
C)  subsidiary 
D)  licensing agreement 
E)  sole proprietorship

Question 5

What is a strategic alliance? What is its major advantage?

Accepted Answer

A strategic alliance,a partnership forme

Question 6

When Sony Corporation of Japan purchased Columbia Pictures Entertainment,Inc.of the United States,Sony made a(n)

Accepted Answer

A)  countertrade with Columbia Pictures. 
B)  indirect investment in the United States. 
C)  direct investment in the United States. 
D)  strategic alliance with Columbia Pictures. 
E)  exporting agreement with the United States. 
A)  countertrade with Columbia Pictures. 
B)  indirect investment in the United States. 
C)  direct investment in the United States. 
D)  strategic alliance with Columbia Pictures. 
E)  exporting agreement with the United States.

Question 7

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

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 8

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 9

A draft is issued by the exporter's bank,ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

Accepted Answer

A) True 
 B)False

Question 10

The U.S.government created the ____ as a comprehensive source for U.S.companies seeking information on federal programs and activities that support U.S.exports.

Accepted Answer

A)  Export Legal Assistance Network 
B)  Trade Information Center 
C)  National Export Strategy 
D)  ADB 
E)  Federal Trade Commission 
A)  Export Legal Assistance Network 
B)  Trade Information Center 
C)  National Export Strategy 
D)  ADB 
E)  Federal Trade Commission

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Eleven republics of the former Soviet Union are members of the

Accepted Answer

A)  Former Soviet Republics Trade Agreement. 
B)  Organization of Petroleum Exporting Countries. 
C)  Association of Asian Nations. 
D)  European and Asian Economic Union. 
E)  Commonwealth of Independent States. 
A)  Former Soviet Republics Trade Agreement. 
B)  Organization of Petroleum Exporting Countries. 
C)  Association of Asian Nations. 
D)  European and Asian Economic Union. 
E)  Commonwealth of Independent States.

Question 13

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

Accepted Answer

A multilateral development bank (MDB)is

Question 14

When the United States levies a tax on coffee from Colombia,this type of tax is a(n)

Accepted Answer

A)  export duty. 
B)  barter. 
C)  import. 
D)  tariff. 
E)  responsibility. 
A)  export duty. 
B)  barter. 
C)  import. 
D)  tariff. 
E)  responsibility.

Question 15

When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid,the go-between representative they employ is (are)

Accepted Answer

A)  ​the local domestic banks involved in international business. 
B)  ​sales agents. 
C)  ​international trade organizations. 
D)  ​the World Bank 
A)  ​the local domestic banks involved in international business. 
B)  ​sales agents. 
C)  ​international trade organizations. 
D)  ​the World Bank

Question 16

The U.S.government imposes a tax on imported automobiles from Japan,Korea,Germany,and other foreign nations to increase government funds.This is best described as a(n)

Accepted Answer

A)  protective tariff. 
B)  revenue tariff. 
C)  dumping duty. 
D)  import quota. 
E)  excise tax. 
A)  protective tariff. 
B)  revenue tariff. 
C)  dumping duty. 
D)  import quota. 
E)  excise tax.

Question 17

What types of products did GATT focus on during the Kennedy Round?

Accepted Answer

A)  Business services and textiles 
B)  Agricultural products and textiles 
C)  Industrial products and business services 
D)  Industrial and agricultural products 
E)  Textiles and intellectual property rights 
A)  Business services and textiles 
B)  Agricultural products and textiles 
C)  Industrial products and business services 
D)  Industrial and agricultural products 
E)  Textiles and intellectual property rights

Question 18

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 19

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.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 20

Latoya is opening a business that makes unique lamps from shells.She is considering exporting these lamps to other countries but needs more information about what to do,how to negotiate the customs process,and which nations would provide the best markets for her products.Which of the following are not resources that would help her find the information she needs?

Accepted Answer

A)  International Trade Administration and U.S.Commercial Service 
B)  U.S.Department of Commerce and U.S.Department of Interior 
C)  U.S.Export Assistance Centers and U.S.and Foreign Commercial Services 
D)  The Advocacy Center and Trade Information Center 
A)  International Trade Administration and U.S.Commercial Service 
B)  U.S.Department of Commerce and U.S.Department of Interior 
C)  U.S.Export Assistance Centers and U.S.and Foreign Commercial Services 
D)  The Advocacy Center and Trade Information Center

When Fabiola 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

When an Indian importing firm wants to import U.S.-made products,it must first secure permission and dollars from the Reserve Bank of India.This type of restriction is known as a

ABC Company wants to explore commercial opportunities in India and needs to consult with a country expert.ABC Company should consider seeking assistance from the

Ford Motor Company,Mazda Motor Corporation,and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988.The new company's heating and cooling units may also be used in Ford's cars.

What is a strategic alliance? What is its major advantage?

When Sony Corporation of Japan purchased Columbia Pictures Entertainment,Inc.of the United States,Sony made a(n)

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

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

A draft is issued by the exporter's bank,ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

The U.S.government created the ____ as a comprehensive source for U.S.companies seeking information on federal programs and activities that support U.S.exports.

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

Eleven republics of the former Soviet Union are members of the

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

When the United States levies a tax on coffee from Colombia,this type of tax is a(n)

When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid,the go-between representative they employ is (are)

The U.S.government imposes a tax on imported automobiles from Japan,Korea,Germany,and other foreign nations to increase government funds.This is best described as a(n)

What types of products did GATT focus on during the Kennedy Round?

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

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

When Fabiola 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

When an Indian importing firm wants to import U.S.-made products,it must first secure permission and dollars from the Reserve Bank of India.This type of restriction is known as a

ABC Company wants to explore commercial opportunities in India and needs to consult with a country expert.ABC Company should consider seeking assistance from the

Ford Motor Company,Mazda Motor Corporation,and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988.The new company's heating and cooling units may also be used in Ford's cars.

What is a strategic alliance? What is its major advantage?

When Sony Corporation of Japan purchased Columbia Pictures Entertainment,Inc.of the United States,Sony made a(n)

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

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

A draft is issued by the exporter's bank,ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

The U.S.government created the ____ as a comprehensive source for U.S.companies seeking information on federal programs and activities that support U.S.exports.

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

Eleven republics of the former Soviet Union are members of the

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

When the United States levies a tax on coffee from Colombia,this type of tax is a(n)

When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid,the go-between representative they employ is (are)

The U.S.government imposes a tax on imported automobiles from Japan,Korea,Germany,and other foreign nations to increase government funds.This is best described as a(n)

What types of products did GATT focus on during the Kennedy Round?

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

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