Question 1

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Accepted Answer

A)  trading company 
B)  strategic alliance 
C)  licensing company 
D)  countertrade agreement 
E)  joint venture 
A)  trading company 
B)  strategic alliance 
C)  licensing company 
D)  countertrade agreement 
E)  joint venture

Question 2

Quotas may be set on worldwide imports or on imports from a specific country.

Accepted Answer

A) True 
 B)False

Question 3

When the U.S.government will not allow meat from another country to be marketed in the United States,it is imposing a(n)

Accepted Answer

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

Question 4

Describe trading companies.What is an important function of trading companies?

Accepted Answer

A trading company provides a link betwee

Question 5

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

Accepted Answer

A) True 
 B)False

Question 6

The World Trade Organization was created by the

Accepted Answer

A)  Kennedy Round. 
B)  United Nations. 
C)  League of Nations. 
D)  Tokyo Round. 
E)  Uruguay Round. 
A)  Kennedy Round. 
B)  United Nations. 
C)  League of Nations. 
D)  Tokyo Round. 
E)  Uruguay Round.

Question 7

The United States does not sell fighter jets,such as F-16s,to Libya.The rationale for this restriction is most likely to

Accepted Answer

A)  protect national security. 
B)  protect domestic jobs. 
C)  protect the health of its citizens. 
D)  retaliate for Libya's trade restrictions. 
E)  protect domestic manufacturers. 
A)  protect national security. 
B)  protect domestic jobs. 
C)  protect the health of its citizens. 
D)  retaliate for Libya's trade restrictions. 
E)  protect domestic manufacturers.

Question 8

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.What type of tax has the Italian government imposed on the company?

Accepted Answer

A)  Export duty 
B)  Embargo 
C)  Revenue tariff 
D)  Protective tariff 
E)  Nontariff barrier 
A)  Export duty 
B)  Embargo 
C)  Revenue tariff 
D)  Protective tariff 
E)  Nontariff barrier

Question 9

The United States has enjoyed a trade surplus during the last two decades.

Accepted Answer

A) True 
 B)False

Question 10

​Panama is considering instituting trade restrictions in order to balance its payments,protect new businesses,and protect domestic jobs.What may be some of the reasons it would not want to institute trade restrictions?

Accepted Answer

A)  ​Higher prices for consumers,restrictions of consumers' choices,misallocation of international resources,and loss of jobs. 
B)  ​Lower prices for consumers,more consumer choices,proper allocation of international resources,and increase in employment. 
C)  ​Sluggish market improvements,high retail prices,and lack of international resources. 
D)  ​Loss of jobs,lack of national innovation,and high interest rates. 
A)  ​Higher prices for consumers,restrictions of consumers' choices,misallocation of international resources,and loss of jobs. 
B)  ​Lower prices for consumers,more consumer choices,proper allocation of international resources,and increase in employment. 
C)  ​Sluggish market improvements,high retail prices,and lack of international resources. 
D)  ​Loss of jobs,lack of national innovation,and high interest rates.

Question 11

Political considerations usually are involved in a country's decision to impose a trade embargo.

Accepted Answer

A) True 
 B)False

Question 12

Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?

Accepted Answer

A)  The Export-Import Bank of the United States 
B)  The MDB 
C)  The European Bank for Reconstruction and Development 
D)  The Inter-American Development Bank 
E)  The International Monetary Fund 
A)  The Export-Import Bank of the United States 
B)  The MDB 
C)  The European Bank for Reconstruction and Development 
D)  The Inter-American Development Bank 
E)  The International Monetary Fund

Question 13

Meredith hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery,the exporter will send Meredith's merchandise when

Accepted Answer

A)  Meredith's bank receives a letter of credit from the importer's bank. 
B)  it receives a letter of credit from Janet's bank. 
C)  its bank receives a draft from the importer's bank. 
D)  Meredith receives a bill of lading. 
E)  the ultimate consumer sends a bill of lading to the exporter's bank. 
A)  Meredith's bank receives a letter of credit from the importer's bank. 
B)  it receives a letter of credit from Janet's bank. 
C)  its bank receives a draft from the importer's bank. 
D)  Meredith receives a bill of lading. 
E)  the ultimate consumer sends a bill of lading to the exporter's bank.

Question 14

What is an embargo? When might it be used?

Accepted Answer

An embargo is a complete halt to trading

Question 15

A letter of credit is issued in favor of the importer.

Accepted Answer

A) True 
 B)False

Question 16

The best method of learning from experience in international business is to

Accepted Answer

A)  enter into a licensing agreement. 
B)  start exporting through an export merchant. 
C)  start exporting through an export agent. 
D)  invest directly in a foreign country. 
E)  form a joint venture. 
A)  enter into a licensing agreement. 
B)  start exporting through an export merchant. 
C)  start exporting through an export agent. 
D)  invest directly in a foreign country. 
E)  form a joint venture.

Question 17

MillerCoors allows a Canadian firm to use its name,formula,and brands in return for a royalty.This is known as

Accepted Answer

A)  exporting. 
B)  licensing. 
C)  direct investment. 
D)  manufacturing in foreign countries. 
E)  none of these answer choices. 
A)  exporting. 
B)  licensing. 
C)  direct investment. 
D)  manufacturing in foreign countries. 
E)  none of these answer choices.

Question 18

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

Accepted Answer

A)  World Bank. 
B)  Export-Import Bank of the World. 
C)  African Development Bank. 
D)  International Monetary Fund. 
E)  Multilateral Development Bank of Central and South America. 
A)  World Bank. 
B)  Export-Import Bank of the World. 
C)  African Development Bank. 
D)  International Monetary Fund. 
E)  Multilateral Development Bank of Central and South America.

Question 19

In 1967,several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Accepted Answer

A)  a GATT. 
B)  the European Union. 
C)  the Association of Southeast Asian Nations. 
D)  a multinational. 
E)  an orderly marketing agreement. 
A)  a GATT. 
B)  the European Union. 
C)  the Association of Southeast Asian Nations. 
D)  a multinational. 
E)  an orderly marketing agreement.

Question 20

Suppose China is trying to develop its international trade in electronic components,but it lacks the money to be successful.From whom should China seek assistance?

Accepted Answer

A)  The International Monetary Fund 
B)  The Inter-American Development Bank 
C)  The United States 
D)  The Federal Reserve 
E)  The Development Bank for Emerging Economies 
A)  The International Monetary Fund 
B)  The Inter-American Development Bank 
C)  The United States 
D)  The Federal Reserve 
E)  The Development Bank for Emerging Economies

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Quotas may be set on worldwide imports or on imports from a specific country.

When the U.S.government will not allow meat from another country to be marketed in the United States,it is imposing a(n)

Describe trading companies.What is an important function of trading companies?

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

The World Trade Organization was created by the

The United States does not sell fighter jets,such as F-16s,to Libya.The rationale for this restriction is most likely to

The United States has enjoyed a trade surplus during the last two decades.

Panama is considering instituting trade restrictions in order to balance its payments,protect new businesses,and protect domestic jobs.What may be some of the reasons it would not want to institute trade restrictions?

Political considerations usually are involved in a country's decision to impose a trade embargo.

Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?

Meredith hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery,the exporter will send Meredith's merchandise when

What is an embargo? When might it be used?

A letter of credit is issued in favor of the importer.

The best method of learning from experience in international business is to

MillerCoors allows a Canadian firm to use its name,formula,and brands in return for a royalty.This is known as

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

In 1967,several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Suppose China is trying to develop its international trade in electronic components,but it lacks the money to be successful.From whom should China seek assistance?

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

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Quotas may be set on worldwide imports or on imports from a specific country.

When the U.S.government will not allow meat from another country to be marketed in the United States,it is imposing a(n)

Describe trading companies.What is an important function of trading companies?

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

The World Trade Organization was created by the

The United States does not sell fighter jets,such as F-16s,to Libya.The rationale for this restriction is most likely to

The United States has enjoyed a trade surplus during the last two decades.

​Panama is considering instituting trade restrictions in order to balance its payments,protect new businesses,and protect domestic jobs.What may be some of the reasons it would not want to institute trade restrictions?

Political considerations usually are involved in a country's decision to impose a trade embargo.

Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?

Meredith hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery,the exporter will send Meredith's merchandise when

What is an embargo? When might it be used?

A letter of credit is issued in favor of the importer.

The best method of learning from experience in international business is to

MillerCoors allows a Canadian firm to use its name,formula,and brands in return for a royalty.This is known as

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

In 1967,several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Suppose China is trying to develop its international trade in electronic components,but it lacks the money to be successful.From whom should China seek assistance?

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

Panama is considering instituting trade restrictions in order to balance its payments,protect new businesses,and protect domestic jobs.What may be some of the reasons it would not want to institute trade restrictions?