Question 1

Suppose Brazil,Argentina,Columbia,Peru,and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

Accepted Answer

A)  world trade organization. 
B)  peace agreement. 
C)  economic community. 
D)  free trade agreement. 
E)  global marketplace. 
A)  world trade organization. 
B)  peace agreement. 
C)  economic community. 
D)  free trade agreement. 
E)  global marketplace.

Question 2

Allen Lee,a Chinese immigrant,would like to start a wholesale furniture business in the United States.He has contacts in the furniture production business in China and feels he can leverage these contacts to purchase inexpensive,high-quality furniture to sell in his stores in the United States.He calls one of his contacts and after extensive negotiation,makes a deal: he will buy the Chinese furniture to sell wholesale in the United States to retail furniture businesses.What is the business relationship between Allen and his Chinese contact?

Accepted Answer

A)  Allen is the licensee and the contact is the licensor. 
B)  Allen is an importer and the contact is an exporter. 
C)  Allen and his contact have a joint venture. 
D)  Allen and his contact have a strategic alliance. 
A)  Allen is the licensee and the contact is the licensor. 
B)  Allen is an importer and the contact is an exporter. 
C)  Allen and his contact have a joint venture. 
D)  Allen and his contact have a strategic alliance.

Question 3

A tariff is a tax levied on a particular foreign product entering a country.

Accepted Answer

A) True 
 B)False

Question 4

Godfrey would like to start a business that will eventually have trade with another.He would like the trade partner to be an Asian country but would like it to be a democracy with great economic growth potential,and a large population of potential consumers.Which nation would most likely be his trading partner?

Accepted Answer

A)  India 
B)  China 
C)  Japan 
D)  Thailand 
A)  India 
B)  China 
C)  Japan 
D)  Thailand

Question 5

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Accepted Answer

A) True 
 B)False

Question 6

Least-favored-nation (LFN)status was the famous principle of GATT.

Accepted Answer

A) True 
 B)False

Question 7

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Accepted Answer

A) True 
 B)False

Question 8

Countertrade is an international barter transaction in which

Accepted Answer

A)  goods and services are exchanged for different goods and services. 
B)  one company sells goods and services under the counter. 
C)  the buyers and sellers trade illegally. 
D)  one company manufactures and the other company owns the assets. 
E)  none of these answer choices are correct. 
A)  goods and services are exchanged for different goods and services. 
B)  one company sells goods and services under the counter. 
C)  the buyers and sellers trade illegally. 
D)  one company manufactures and the other company owns the assets. 
E)  none of these answer choices are correct.

Question 9

Totally owned facilities overseas are an example of

Accepted Answer

A)  indirect investment. 
B)  direct investment. 
C)  roundabout investment. 
D)  licensing. 
E)  joint venture. 
A)  indirect investment. 
B)  direct investment. 
C)  roundabout investment. 
D)  licensing. 
E)  joint venture.

Question 10

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Accepted Answer

A) True 
 B)False

Question 11

The World Trade Organization (WTO)was established by GATT to oversee the provisions of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 12

Arguments for the government imposing restrictions on foreign trade include

Accepted Answer

A)  the loss of jobs in foreign countries. 
B)  advancing technology will harm the country's economy. 
C)  restriction of consumers' choices. 
D)  protection of the health of its citizens. 
E)  helping the foreign country become more competitive. 
A)  the loss of jobs in foreign countries. 
B)  advancing technology will harm the country's economy. 
C)  restriction of consumers' choices. 
D)  protection of the health of its citizens. 
E)  helping the foreign country become more competitive.

Question 13

Which is the largest emerging Asian market?

Accepted Answer

A)  Japan 
B)  Indonesia 
C)  Korea 
D)  Malaysia 
E)  China 
A)  Japan 
B)  Indonesia 
C)  Korea 
D)  Malaysia 
E)  China

Question 14

Although it lacks sources of timber and oil,Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

Accepted Answer

A)  It has a comparative advantage in wine production. 
B)  It has a comparative advantage in timber and oil production. 
C)  It has an absolute advantage in the production of wine. 
D)  It has an absolute advantage in timber and oil production. 
E)  It has no comparative or absolute advantages. 
A)  It has a comparative advantage in wine production. 
B)  It has a comparative advantage in timber and oil production. 
C)  It has an absolute advantage in the production of wine. 
D)  It has an absolute advantage in timber and oil production. 
E)  It has no comparative or absolute advantages.

Question 15

​If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

Accepted Answer

A)  ​Asian Development Bank. 
B)  ​World Bank. 
C)  ​International Monetary Fund. 
D)  ​United Nations. 
A)  ​Asian Development Bank. 
B)  ​World Bank. 
C)  ​International Monetary Fund. 
D)  ​United Nations.

Question 16

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Accepted Answer

A) True 
 B)False

Question 17

​Those who criticize NAFTA say that it has not achieved its goals and all of the following except

Accepted Answer

A)  ​it advances technology. 
B)  ​has resulted in job losses. 
C)  ​does nothing to help the environment. 
D)  ​hurts the agricultural sector. 
A)  ​it advances technology. 
B)  ​has resulted in job losses. 
C)  ​does nothing to help the environment. 
D)  ​hurts the agricultural sector.

Question 18

If a country imports more than it exports,its balance of trade is said to be favorable.

Accepted Answer

A) True 
 B)False

Question 19

If Japan were regarded as the best electronics manufacturer in the world,what would be true?

Accepted Answer

A)  Japan would have a comparative advantage in electronics manufacturing. 
B)  Japan would have a positive balance of trade. 
C)  The United States would have a comparative advantage in electronics. 
D)  Japan would have an absolute advantage in electronics production. 
E)  Japan would have a trade deficit with the United States. 
A)  Japan would have a comparative advantage in electronics manufacturing. 
B)  Japan would have a positive balance of trade. 
C)  The United States would have a comparative advantage in electronics. 
D)  Japan would have an absolute advantage in electronics production. 
E)  Japan would have a trade deficit with the United States.

Question 20

Cultural barriers can impede acceptance of products in foreign countries.

Accepted Answer

A) True 
 B)False

Suppose Brazil,Argentina,Columbia,Peru,and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

A tariff is a tax levied on a particular foreign product entering a country.

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Least-favored-nation (LFN)status was the famous principle of GATT.

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Countertrade is an international barter transaction in which

Totally owned facilities overseas are an example of

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

The World Trade Organization (WTO)was established by GATT to oversee the provisions of the Uruguay Round.

Arguments for the government imposing restrictions on foreign trade include

Which is the largest emerging Asian market?

Although it lacks sources of timber and oil,Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Those who criticize NAFTA say that it has not achieved its goals and all of the following except

If a country imports more than it exports,its balance of trade is said to be favorable.

If Japan were regarded as the best electronics manufacturer in the world,what would be true?

Cultural barriers can impede acceptance of products in foreign countries.

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

Suppose Brazil,Argentina,Columbia,Peru,and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

A tariff is a tax levied on a particular foreign product entering a country.

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Least-favored-nation (LFN)status was the famous principle of GATT.

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Countertrade is an international barter transaction in which

Totally owned facilities overseas are an example of

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

The World Trade Organization (WTO)was established by GATT to oversee the provisions of the Uruguay Round.

Arguments for the government imposing restrictions on foreign trade include

Which is the largest emerging Asian market?

Although it lacks sources of timber and oil,Chablis has a plentiful supply of grapes for its many wineries.Which statement about Chablis is true?

​If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

​Those who criticize NAFTA say that it has not achieved its goals and all of the following except

If a country imports more than it exports,its balance of trade is said to be favorable.

If Japan were regarded as the best electronics manufacturer in the world,what would be true?

Cultural barriers can impede acceptance of products in foreign countries.

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

If the Philippines needed to borrow money to promote its economic and social progress,it would most likely go to the ___.

Those who criticize NAFTA say that it has not achieved its goals and all of the following except