Question 1

CAFTA,NAFTA,OECD,and OPEC are all examples of

Accepted Answer

A)  political organizations. 
B)  peace treaties. 
C)  international economic communities. 
D)  World Trade Organization members. 
E)  democratic organizations. 
A)  political organizations. 
B)  peace treaties. 
C)  international economic communities. 
D)  World Trade Organization members. 
E)  democratic organizations.

Question 2

Balance of payments is a ____ concept than balance of trade.

Accepted Answer

A)  more difficult 
B)  less difficult 
C)  nearly identical 
D)  broader 
E)  narrower 
A)  more difficult 
B)  less difficult 
C)  nearly identical 
D)  broader 
E)  narrower

Question 3

The International Monetary Fund (IMF)makes short-term loans to developing countries experiencing balance-of-payment deficits.

Accepted Answer

A) True 
 B)False

Question 4

The World Bank is an example of a(n)____,supported by industrialized nations,including the United States.

Accepted Answer

A)  ADB 
B)  IMF 
C)  MDB 
D)  EFTA 
E)  LAFTA 
A)  ADB 
B)  IMF 
C)  MDB 
D)  EFTA 
E)  LAFTA

Question 5

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.Which of the following alternatives could have worked as a link between the managers at Thomas Bernerd,Inc.and the buyer from a different country?

Accepted Answer

A)  International barter 
B)  Counter trade 
C)  Trading company 
D)  Comparative trader 
E)  Foreign-exchange control 
A)  International barter 
B)  Counter trade 
C)  Trading company 
D)  Comparative trader 
E)  Foreign-exchange control

Question 6

Another name for an import duty is a(n)

Accepted Answer

A)  tariff. 
B)  embargo. 
C)  devaluation. 
D)  quota. 
E)  limitation. 
A)  tariff. 
B)  embargo. 
C)  devaluation. 
D)  quota. 
E)  limitation.

Question 7

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

Accepted Answer

A) True 
 B)False

Question 8

A ____ is issued by the exporter's bank,ordering the importer's bank to pay for the merchandise.

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 9

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

Accepted Answer

A) True 
 B)False

Question 10

What does the International Monetary Fund (IMF)do for nations with an unfavorable balance of trade?

Accepted Answer

The International Monetary Fund (IMF)is

Question 11

When a coffee chain in Portland,Oregon purchases coffee from Colombia,South America,it

Accepted Answer

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

Question 12

Which of the following federal governmental agencies provides domestic and overseas commercial officers,country experts,and industry experts?

Accepted Answer

A)  Export Legal Assistance Network 
B)  International Trade Administration 
C)  Advocacy Center 
D)  American Business Center 
E)  U.S.Department of Transportation 
A)  Export Legal Assistance Network 
B)  International Trade Administration 
C)  Advocacy Center 
D)  American Business Center 
E)  U.S.Department of Transportation

Question 13

Which of the following is false concerning the International Monetary Fund?

Accepted Answer

A)  It has more than 150 member nations. 
B)  It makes short-term loans to developing countries. 
C)  Its loans are primarily to fund international trade. 
D)  Its loans to developing countries are interest free. 
E)  It is an international bank. 
A)  It has more than 150 member nations. 
B)  It makes short-term loans to developing countries. 
C)  Its loans are primarily to fund international trade. 
D)  Its loans to developing countries are interest free. 
E)  It is an international bank.

Question 14

Suppose the country of Peru wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is Peru interested in receiving?

Accepted Answer

A)  Free trade 
B)  Importation/exportation 
C)  The Tokyo Round 
D)  Foreign-exchange control 
E)  Most-favored-nation status 
A)  Free trade 
B)  Importation/exportation 
C)  The Tokyo Round 
D)  Foreign-exchange control 
E)  Most-favored-nation status

Question 15

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 16

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Accepted Answer

A) True 
 B)False

Question 17

Due to worldwide trade restrictions,international business is declining in volume.

Accepted Answer

A) True 
 B)False

Question 18

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 19

U.S.trade restrictions benefit only a few industries while harming many others.

Accepted Answer

A) True 
 B)False

Question 20

A favorable balance of payments means that

Accepted Answer

A)  exports exceed imports. 
B)  imports exceed exports. 
C)  payments exceed trade. 
D)  exports and other payments exceed imports and other receipts. 
E)  total receipts exceed total payments. 
A)  exports exceed imports. 
B)  imports exceed exports. 
C)  payments exceed trade. 
D)  exports and other payments exceed imports and other receipts. 
E)  total receipts exceed total payments.

CAFTA,NAFTA,OECD,and OPEC are all examples of

Balance of payments is a ____ concept than balance of trade.

The International Monetary Fund (IMF)makes short-term loans to developing countries experiencing balance-of-payment deficits.

The World Bank is an example of a(n)____,supported by industrialized nations,including the United States.

Another name for an import duty is a(n)

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

A ____ is issued by the exporter's bank,ordering the importer's bank to pay for the merchandise.

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

What does the International Monetary Fund (IMF)do for nations with an unfavorable balance of trade?

When a coffee chain in Portland,Oregon purchases coffee from Colombia,South America,it

Which of the following federal governmental agencies provides domestic and overseas commercial officers,country experts,and industry experts?

Which of the following is false concerning the International Monetary Fund?

Suppose the country of Peru wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is Peru interested in receiving?

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Due to worldwide trade restrictions,international business is declining in volume.

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

U.S.trade restrictions benefit only a few industries while harming many others.

A favorable balance of payments means that

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

CAFTA,NAFTA,OECD,and OPEC are all examples of

Balance of payments is a ____ concept than balance of trade.

The International Monetary Fund (IMF)makes short-term loans to developing countries experiencing balance-of-payment deficits.

The World Bank is an example of a(n)____,supported by industrialized nations,including the United States.

Another name for an import duty is a(n)

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

A ____ is issued by the exporter's bank,ordering the importer's bank to pay for the merchandise.

Trade restrictions limit choices for consumers but have no effect on the prices charged for the products.

What does the International Monetary Fund (IMF)do for nations with an unfavorable balance of trade?

When a coffee chain in Portland,Oregon purchases coffee from Colombia,South America,it

Which of the following federal governmental agencies provides domestic and overseas commercial officers,country experts,and industry experts?

Which of the following is false concerning the International Monetary Fund?

Suppose the country of Peru wanted to join GATT and thus be treated the same as other GATT members.What GATT principle is Peru interested in receiving?

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Due to worldwide trade restrictions,international business is declining in volume.

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

U.S.trade restrictions benefit only a few industries while harming many others.

A favorable balance of payments means that

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