Question 1

In 2007 this country ranked second behind the United States in the ranking of the world's largest corporations.

Accepted Answer

A)  Netherlands 
B)  Japan 
C)  France 
D)  Germany 
E)  South Korea 
A)  Netherlands 
B)  Japan 
C)  France 
D)  Germany 
E)  South Korea

Question 2

According to the information provided in the text, a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing is called:

Accepted Answer

A)  quotas. 
B)  fees. 
C)  standards. 
D)  antidumping laws. 
E)  licenses. 
A)  quotas. 
B)  fees. 
C)  standards. 
D)  antidumping laws. 
E)  licenses.

Question 3

As a result of the increasing global trade, the United States was able to increase its share of the world gross national product (GNP) from less than 25 percent in 1950 to over 39 percent in 2010.

Accepted Answer

A) True 
 B)False

Question 4

The reciprocal impact of U.S. assistance to other countries to develop their markets and improve global trade was that the recipient countries provided funds for American domestic infrastructure development efforts.

Accepted Answer

A) True 
 B)False

Question 5

Cybil Chan has been asked by her company to review a series of published nontariff barriers that is used by the Hong Kong Port Authority to control customs and administrative entry procedures. Which of the following nontariff barriers should Ms. Chan look for under the category called customs and administrative entry procedures?

Accepted Answer

A)  Orderly marketing agreements 
B)  Voluntary export restraints 
C)  Countervailing duties 
D)  Export subsidies 
E)  Documentation requirements 
A)  Orderly marketing agreements 
B)  Voluntary export restraints 
C)  Countervailing duties 
D)  Export subsidies 
E)  Documentation requirements

Question 6

Which of the following arguments regarding protections is recognized by economists as valid?

Accepted Answer

A)  Need to keep money at home 
B)  Encouragement of capital accumulation 
C)  Protection of an infant industry 
D)  Conservation of natural resources 
E)  Maintenance of employment and reduction of unemployment 
A)  Need to keep money at home 
B)  Encouragement of capital accumulation 
C)  Protection of an infant industry 
D)  Conservation of natural resources 
E)  Maintenance of employment and reduction of unemployment

Question 7

Why was the IMF formed? How does the IMF deal with universally floating rates?

Accepted Answer

Inadequate monetary reserves and unstabl

Question 8

The exchange permit may stipulate an unfavorable rate of exchange depending on the desires of the government.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is one of the primary objectives of the International Monetary Fund (IMF)?

Accepted Answer

A)  The abolishment of unfavorable exchange rates for any nation. 
B)  The abolishment of debt for impoverished nations. 
C)  The stabilization of foreign exchange rates. 
D)  The waiver of all debts from World War II. 
E)  The establishment of global nondiscriminatory prices. 
A)  The abolishment of unfavorable exchange rates for any nation. 
B)  The abolishment of debt for impoverished nations. 
C)  The stabilization of foreign exchange rates. 
D)  The waiver of all debts from World War II. 
E)  The establishment of global nondiscriminatory prices.

Question 10

Which of the following is true regarding VERs?

Accepted Answer

A)  International regulatory bodies set export/import limits. 
B)  The importing sets the trade limits for import. 
C)  The exporting country sets the limits. 
D)  It is a common reaction to lenient tariffs and quotas by the importing country. 
E)  A VER is established in agreement with the importing country. 
A)  International regulatory bodies set export/import limits. 
B)  The importing sets the trade limits for import. 
C)  The exporting country sets the limits. 
D)  It is a common reaction to lenient tariffs and quotas by the importing country. 
E)  A VER is established in agreement with the importing country.

Question 11

Describe VERs.

Accepted Answer

The VER is an agreement between the impo

Question 12

Which of the following were the original signatories to the General Agreement on Tariffs and Trade (GATT) shortly after World War II?

Accepted Answer

A)  The United States, The United Kingdom, and Germany 
B)  The United States and 22 other countries 
C)  The United States, countries of Europe, and Japan 
D)  The United States and 6 other countries 
E)  The United States, France, Germany, The U.K., and Japan 
A)  The United States, The United Kingdom, and Germany 
B)  The United States and 22 other countries 
C)  The United States, countries of Europe, and Japan 
D)  The United States and 6 other countries 
E)  The United States, France, Germany, The U.K., and Japan

Question 13

Tariffs often are used as reprisals against protectionist moves of trading partners.

Accepted Answer

A) True 
 B)False

Question 14

The GATT panels formed to resolve bilateral trade disputes are only advisory and have no enforcement powers.

Accepted Answer

A) True 
 B)False

Question 15

How is the balance ensured in a balance-of-payments record? What does a balanced record signify?

Accepted Answer

A balance of payments represents the dif

Question 16

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm?

Accepted Answer

A)  The market access section 
B)  The export expansion section 
C)  The import relief section 
D)  The foreign exchange regulation section 
E)  The trade deficit section 
A)  The market access section 
B)  The export expansion section 
C)  The import relief section 
D)  The foreign exchange regulation section 
E)  The trade deficit section

Question 17

Which of the following is NOT one of the four ongoing activities that support the growth of international trade?

Accepted Answer

A)  GATT 
B)  WTO 
C)  The International Monetary Fund 
D)  The World Bank Group 
E)  The Global Development Network 
A)  GATT 
B)  WTO 
C)  The International Monetary Fund 
D)  The World Bank Group 
E)  The Global Development Network

Question 18

What was the outcome for GATT, after the ratification of the Uruguay Round agreements?

Accepted Answer

A)  It came into effect retrospectively, leading to huge payment deficits for member nations. 
B)  It became part of the World Trade Organization. 
C)  It triggered formation of competitive treaties from Asian nations. 
D)  The European Union decided to stay away from the treaty. 
E)  The original purpose was sidelined in favor of political and military intervention between member states. 
A)  It came into effect retrospectively, leading to huge payment deficits for member nations. 
B)  It became part of the World Trade Organization. 
C)  It triggered formation of competitive treaties from Asian nations. 
D)  The European Union decided to stay away from the treaty. 
E)  The original purpose was sidelined in favor of political and military intervention between member states.

Question 19

Barriers to trade are encouraged by local industry.

Accepted Answer

A) True 
 B)False

Question 20

The five institutions of the World Bank Group perform all the following services EXCEPT:

Accepted Answer

A)  lending money to the governments of developing countries to finance development projects in education, health, and infrastructure. 
B)  providing assistance to governments for developmental projects to the poorest developing countries. 
C)  helping strengthen the private sector in developing countries with long-term loans, equity investments, and other financial assistance. 
D)  providing investors with investment guarantees against "commercial risk". 
E)  providing facilities for the conciliation and arbitration of disputes between governments and foreign investors. 
A)  lending money to the governments of developing countries to finance development projects in education, health, and infrastructure. 
B)  providing assistance to governments for developmental projects to the poorest developing countries. 
C)  helping strengthen the private sector in developing countries with long-term loans, equity investments, and other financial assistance. 
D)  providing investors with investment guarantees against "commercial risk". 
E)  providing facilities for the conciliation and arbitration of disputes between governments and foreign investors.

In 2007 this country ranked second behind the United States in the ranking of the world's largest corporations.

According to the information provided in the text, a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing is called:

As a result of the increasing global trade, the United States was able to increase its share of the world gross national product (GNP) from less than 25 percent in 1950 to over 39 percent in 2010.

The reciprocal impact of U.S. assistance to other countries to develop their markets and improve global trade was that the recipient countries provided funds for American domestic infrastructure development efforts.

Which of the following arguments regarding protections is recognized by economists as valid?

Why was the IMF formed? How does the IMF deal with universally floating rates?

The exchange permit may stipulate an unfavorable rate of exchange depending on the desires of the government.

Which of the following is one of the primary objectives of the International Monetary Fund (IMF)?

Which of the following is true regarding VERs?

Describe VERs.

Which of the following were the original signatories to the General Agreement on Tariffs and Trade (GATT) shortly after World War II?

Tariffs often are used as reprisals against protectionist moves of trading partners.

The GATT panels formed to resolve bilateral trade disputes are only advisory and have no enforcement powers.

How is the balance ensured in a balance-of-payments record? What does a balanced record signify?

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm?

Which of the following is NOT one of the four ongoing activities that support the growth of international trade?

What was the outcome for GATT, after the ratification of the Uruguay Round agreements?

Barriers to trade are encouraged by local industry.

The five institutions of the World Bank Group perform all the following services EXCEPT:

The Scope and Challenge of International Marketing

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: A Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Negotiating With International Customers, Partners, and Regulators

Filters

Exam 2: The Dynamic Environment of International Trade

In 2007 this country ranked second behind the United States in the ranking of the world's largest corporations.

According to the information provided in the text, a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing is called:

As a result of the increasing global trade, the United States was able to increase its share of the world gross national product (GNP) from less than 25 percent in 1950 to over 39 percent in 2010.

The reciprocal impact of U.S. assistance to other countries to develop their markets and improve global trade was that the recipient countries provided funds for American domestic infrastructure development efforts.

Which of the following arguments regarding protections is recognized by economists as valid?

Why was the IMF formed? How does the IMF deal with universally floating rates?

The exchange permit may stipulate an unfavorable rate of exchange depending on the desires of the government.

Which of the following is one of the primary objectives of the International Monetary Fund (IMF)?

Which of the following is true regarding VERs?

Describe VERs.

Which of the following were the original signatories to the General Agreement on Tariffs and Trade (GATT) shortly after World War II?

Tariffs often are used as reprisals against protectionist moves of trading partners.

The GATT panels formed to resolve bilateral trade disputes are only advisory and have no enforcement powers.

How is the balance ensured in a balance-of-payments record? What does a balanced record signify?

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm?

Which of the following is NOT one of the four ongoing activities that support the growth of international trade?

What was the outcome for GATT, after the ratification of the Uruguay Round agreements?

Barriers to trade are encouraged by local industry.

The five institutions of the World Bank Group perform all the following services EXCEPT:

The Scope and Challenge of International Marketing

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The Political Environment: A Critical Concern

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Negotiating With International Customers, Partners, and Regulators

Filters