Question 1

Which of the following functions is not performed by a trading company?

Accepted Answer

A)  Taking title to products 
B)  Manufacturing products for foreign trading 
C)  Linking buyers and sellers in different countries 
D)  Buying products at the lowest price consistent with quality 
E)  Performing activities necessary to move goods to the foreign country 
A)  Taking title to products 
B)  Manufacturing products for foreign trading 
C)  Linking buyers and sellers in different countries 
D)  Buying products at the lowest price consistent with quality 
E)  Performing activities necessary to move goods to the foreign country

Question 2

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Accepted Answer

A country's balance of trade is the tota

Question 3

An import duty has the effect of all of the following except

Accepted Answer

A)  reducing the number of units exported. 
B)  raising the price of the product in the importing nation. 
C)  reducing the number of units imported. 
D)  creating a trade restriction. 
E)  protecting a domestic industry from competition. 
A)  reducing the number of units exported. 
B)  raising the price of the product in the importing nation. 
C)  reducing the number of units imported. 
D)  creating a trade restriction. 
E)  protecting a domestic industry from competition.

Question 4

Which of the following best compares licensing and exporting as tools for entering foreign markets?

Accepted Answer

A)  Licensing and exporting are both low-risk methods,but licensing is not as simple as exporting. 
B)  Licensing is riskier and more complicated than exporting. 
C)  Exporting is much riskier and more complicated than licensing. 
D)  Licensing and exporting are both low-risk,but exporting is more complicated. 
E)  Licensing and exporting are both complicated and expensive methods. 
A)  Licensing and exporting are both low-risk methods,but licensing is not as simple as exporting. 
B)  Licensing is riskier and more complicated than exporting. 
C)  Exporting is much riskier and more complicated than licensing. 
D)  Licensing and exporting are both low-risk,but exporting is more complicated. 
E)  Licensing and exporting are both complicated and expensive methods.

Question 5

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Accepted Answer

A) True 
 B)False

Question 6

Who are the two largest contributors to the Asian Development Bank?

Accepted Answer

A)  China and Japan 
B)  Japan and India 
C)  The United States and Japan 
D)  Russia and China 
E)  China and Indonesia 
A)  China and Japan 
B)  Japan and India 
C)  The United States and Japan 
D)  Russia and China 
E)  China and Indonesia

Question 7

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

Accepted Answer

A)  trade deficit. 
B)  favorable balance of trade. 
C)  unfavorable exchange rate. 
D)  unfavorable balance of trade. 
E)  unfavorable balance of payments. 
A)  trade deficit. 
B)  favorable balance of trade. 
C)  unfavorable exchange rate. 
D)  unfavorable balance of trade. 
E)  unfavorable balance of payments.

Question 8

Trade restrictions usually have no immediate or long-term economic consequences.

Accepted Answer

A) True 
 B)False

Question 9

American automakers are concerned about the availability of so many foreign cars to U.S.consumers and that their chances to sell their own cars are limited.To directly correct the situation,they encourage Congress to impose a(n)

Accepted Answer

A)  export quota. 
B)  export duty. 
C)  import quota. 
D)  tariff. 
E)  import duty. 
A)  export quota. 
B)  export duty. 
C)  import quota. 
D)  tariff. 
E)  import duty.

Question 10

By definition,every country has a comparative advantage in some product.

Accepted Answer

A) True 
 B)False

Question 11

An unfavorable trade balance is called a(n)

Accepted Answer

A)  balance of trade. 
B)  trade deficit. 
C)  currency devaluation. 
D)  balance of payments. 
E)  import balance. 
A)  balance of trade. 
B)  trade deficit. 
C)  currency devaluation. 
D)  balance of payments. 
E)  import balance.

Question 12

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Accepted Answer

A) True 
 B)False

Question 13

When a business has plants located in several foreign countries without ties to any specific nation or region,it is called a(n)

Accepted Answer

A)  multinational enterprise. 
B)  joint venture. 
C)  exporting business. 
D)  licensing firm. 
E)  none of these answer choices. 
A)  multinational enterprise. 
B)  joint venture. 
C)  exporting business. 
D)  licensing firm. 
E)  none of these answer choices.

Question 14

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

Accepted Answer

A)  EU. 
B)  OPEC. 
C)  NAFTA. 
D)  ASEAN. 
E)  GATT. 
A)  EU. 
B)  OPEC. 
C)  NAFTA. 
D)  ASEAN. 
E)  GATT.

Question 15

A new country is formed in central Africa.It has no absolute advantage in crude oil,diamonds,or wool.However,it does manufacture high-quality bows and arrows for specialized safari adventures.Which of the following statements is true?

Accepted Answer

A)  The new country should try to produce its own crude oil,diamonds,and wool. 
B)  The new country has a comparative advantage in the production of bows and arrows. 
C)  The new country has an unqualified advantage in the production of bows and arrows. 
D)  The new country has a determined advantage in the production of arrows. 
E)  The new country is engaged in dumping bows and arrows. 
A)  The new country should try to produce its own crude oil,diamonds,and wool. 
B)  The new country has a comparative advantage in the production of bows and arrows. 
C)  The new country has an unqualified advantage in the production of bows and arrows. 
D)  The new country has a determined advantage in the production of arrows. 
E)  The new country is engaged in dumping bows and arrows.

Question 16

The United Kingdom sells industrial supplies and materials to many nations around the world.The United Kingdom 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 17

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

Accepted Answer

A) True 
 B)False

Question 18

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

Accepted Answer

A) True 
 B)False

Question 19

​While the global economy continued to grow robustly until 2007,economic performance ______.

Accepted Answer

A)  ​was sluggish then stopped in 2009. 
B)  ​was advancing at an equal pace. 
C)  ​outstripped the global economy. 
D)  ​continued gradually. 
A)  ​was sluggish then stopped in 2009. 
B)  ​was advancing at an equal pace. 
C)  ​outstripped the global economy. 
D)  ​continued gradually.

Question 20

All of the following are ways to export a product to a foreign market except

Accepted Answer

A)  using an export-import merchant. 
B)  using an export-import agent. 
C)  establishing a foreign sales office. 
D)  establishing a foreign sales branch. 
E)  all of these answer choices are ways to export a product to a foreign market. 
A)  using an export-import merchant. 
B)  using an export-import agent. 
C)  establishing a foreign sales office. 
D)  establishing a foreign sales branch. 
E)  all of these answer choices are ways to export a product to a foreign market.

Which of the following functions is not performed by a trading company?

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

An import duty has the effect of all of the following except

Which of the following best compares licensing and exporting as tools for entering foreign markets?

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Who are the two largest contributors to the Asian Development Bank?

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

Trade restrictions usually have no immediate or long-term economic consequences.

American automakers are concerned about the availability of so many foreign cars to U.S.consumers and that their chances to sell their own cars are limited.To directly correct the situation,they encourage Congress to impose a(n)

By definition,every country has a comparative advantage in some product.

An unfavorable trade balance is called a(n)

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

When a business has plants located in several foreign countries without ties to any specific nation or region,it is called a(n)

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

A new country is formed in central Africa.It has no absolute advantage in crude oil,diamonds,or wool.However,it does manufacture high-quality bows and arrows for specialized safari adventures.Which of the following statements is true?

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

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

While the global economy continued to grow robustly until 2007,economic performance ______.

All of the following are ways to export a product to a foreign market except

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

Which of the following functions is not performed by a trading company?

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

An import duty has the effect of all of the following except

Which of the following best compares licensing and exporting as tools for entering foreign markets?

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Who are the two largest contributors to the Asian Development Bank?

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

Trade restrictions usually have no immediate or long-term economic consequences.

American automakers are concerned about the availability of so many foreign cars to U.S.consumers and that their chances to sell their own cars are limited.To directly correct the situation,they encourage Congress to impose a(n)

By definition,every country has a comparative advantage in some product.

An unfavorable trade balance is called a(n)

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

When a business has plants located in several foreign countries without ties to any specific nation or region,it is called a(n)

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

A new country is formed in central Africa.It has no absolute advantage in crude oil,diamonds,or wool.However,it does manufacture high-quality bows and arrows for specialized safari adventures.Which of the following statements is true?

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

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

​While the global economy continued to grow robustly until 2007,economic performance ______.

All of the following are ways to export a product to a foreign market except

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

While the global economy continued to grow robustly until 2007,economic performance ______.