Question 1

Which of the following is true of the GATT?

Accepted Answer

A)  The U.S, U.K, and Germany were the original signatories of the GATT. 
B)  The original agreement provided a process to increase the required tariffs. 
C)  Member nations seek to resolve their trade disputes unilaterally. 
D)  The GATT panels have enforcement powers apart from advisory powers. 
E)  It created an agency to serve as watchdog over world trade. 
A)  The U.S, U.K, and Germany were the original signatories of the GATT. 
B)  The original agreement provided a process to increase the required tariffs. 
C)  Member nations seek to resolve their trade disputes unilaterally. 
D)  The GATT panels have enforcement powers apart from advisory powers. 
E)  It created an agency to serve as watchdog over world trade. E

Question 2

Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. local markets.

Accepted Answer

A) True 
 B)False  False

Question 3

A VER is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?

Accepted Answer

A)  The resurgence of competition worldwide. 
B)  The uneven distribution of economic power. 
C)  The restructuring of U.S industries. 
D)  The decadence of Communism. 
E)  The dissolution of colonial powers. 
A)  The resurgence of competition worldwide. 
B)  The uneven distribution of economic power. 
C)  The restructuring of U.S industries. 
D)  The decadence of Communism. 
E)  The dissolution of colonial powers.

Question 5

Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?

Accepted Answer

A)  Tariff 
B)  Import quota 
C)  Blocked currency 
D)  Government approval 
E)  Export levies 
A)  Tariff 
B)  Import quota 
C)  Blocked currency 
D)  Government approval 
E)  Export levies

Question 6

Which of the following falls on the minus side of the U.S. balance of payments?

Accepted Answer

A)  Payments to the United States for insurance. 
B)  Payments of dividends and interest on investments abroad. 
C)  Return on capital invested abroad. 
D)  New foreign investments in the United States. 
E)  Spending by American tourists overseas. 
A)  Payments to the United States for insurance. 
B)  Payments of dividends and interest on investments abroad. 
C)  Return on capital invested abroad. 
D)  New foreign investments in the United States. 
E)  Spending by American tourists overseas.

Question 7

Which of the following is an example of a nontariff trade barrier?

Accepted Answer

A)  Compound duties 
B)  Revenue tariffs 
C)  Administrative fees 
D)  Specific duties 
E)  Duties 
A)  Compound duties 
B)  Revenue tariffs 
C)  Administrative fees 
D)  Specific duties 
E)  Duties

Question 8

Which of the following is an adverse consequence of globalization?

Accepted Answer

A)  Nationalization of private sector holdings. 
B)  Lower and more competitive oil prices. 
C)  Reduced variety and quality of goods and services. 
D)  Worker exploitation and domestic job losses. 
E)  Provision of loans from the World Bank. 
A)  Nationalization of private sector holdings. 
B)  Lower and more competitive oil prices. 
C)  Reduced variety and quality of goods and services. 
D)  Worker exploitation and domestic job losses. 
E)  Provision of loans from the World Bank.

Question 9

In the context of nontariff barriers, antidumping practices fall under the category of:

Accepted Answer

A)  specific limitations on trade. 
B)  customs and administrative entry procedures. 
C)  standards. 
D)  governmental participation in trade. 
E)  charges on imports. 
A)  specific limitations on trade. 
B)  customs and administrative entry procedures. 
C)  standards. 
D)  governmental participation in trade. 
E)  charges on imports.

Question 10

What are the areas primarily focused in the Omnibus Trade and Competitiveness Act of 1988?

Accepted Answer

The Omnibus Trade and Competitiveness Ac

Question 11

Which of the following agreements makes it possible for firms to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution?

Accepted Answer

A)  Trade-Related Aspects of Intellectual Property Rights (TRIPs) 
B)  Trade-Related Investment Measures (TRIMs) 
C)  General Agreement on Trade in Services (GATS) 
D)  Marrakesh Agreement 
E)  Stockholm Agreement 
A)  Trade-Related Aspects of Intellectual Property Rights (TRIPs) 
B)  Trade-Related Investment Measures (TRIMs) 
C)  General Agreement on Trade in Services (GATS) 
D)  Marrakesh Agreement 
E)  Stockholm Agreement

Question 12

The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at much faster rates when compared to the developing economies.

Accepted Answer

A) True 
 B)False

Question 13

The GATT became part of the World Trade Organization in 1995, with the ratification of the Uruguay Round agreements.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true with regard to the status of protests against global financial institutions?

Accepted Answer

A)  Organized protests against global financial institutions began with the establishment of the IMF in 1945. 
B)  The sole focus of the anticapitalist protestors has been the environmental impact of globalization and the need for stability. 
C)  The "antisweatshop" campaigns by students in America have translated into changes in policy. 
D)  The entire gamut of anticapitalist protests have been weak and ineffectual in the face of the tremendous power of the global financial institutions. 
E)  The protests against the global financial institutions have been organized yet non violent as a rule. 
A)  Organized protests against global financial institutions began with the establishment of the IMF in 1945. 
B)  The sole focus of the anticapitalist protestors has been the environmental impact of globalization and the need for stability. 
C)  The "antisweatshop" campaigns by students in America have translated into changes in policy. 
D)  The entire gamut of anticapitalist protests have been weak and ineffectual in the face of the tremendous power of the global financial institutions. 
E)  The protests against the global financial institutions have been organized yet non violent as a rule.

Question 15

Which of the following factors was primarily responsible for the excess production capacity in the U.S. in the first half of the twentieth century?

Accepted Answer

A)  Technological innovation revolutionized production during this time. 
B)  Many firms from other nations shifted their production facilities to the U.S. 
C)  Domestic demand was at a historic low and resulted in excess capacity. 
D)  Swelling labor supply of returning military after World War II. 
E)  Influx of migrant laborers from Europe and Japan. 
A)  Technological innovation revolutionized production during this time. 
B)  Many firms from other nations shifted their production facilities to the U.S. 
C)  Domestic demand was at a historic low and resulted in excess capacity. 
D)  Swelling labor supply of returning military after World War II. 
E)  Influx of migrant laborers from Europe and Japan.

Question 16

The Omnibus Trade and Competitiveness act gives the U.S. president authority to restrict sales of a country's products in the U.S. market if that country imposes unfair restrictions on U.S. products.

Accepted Answer

A) True 
 B)False

Question 17

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.

Accepted Answer

A) True 
 B)False

Question 18

The marketing manager for Grand Products wants to export the company's range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of _____.

Accepted Answer

A)  OMAs 
B)  quotas 
C)  tarrifs 
D)  VERs 
E)  boycotts 
A)  OMAs 
B)  quotas 
C)  tarrifs 
D)  VERs 
E)  boycotts

Question 19

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.

Accepted Answer

A)  boycott 
B)  asterisk bill 
C)  tariff 
D)  quota 
E)  writ 
A)  boycott 
B)  asterisk bill 
C)  tariff 
D)  quota 
E)  writ

Question 20

Which of the following arguments regarding the need for protectionism 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.

Which of the following is true of the GATT?

Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. local markets.

A VER is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?

Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?

Which of the following falls on the minus side of the U.S. balance of payments?

Which of the following is an example of a nontariff trade barrier?

Which of the following is an adverse consequence of globalization?

In the context of nontariff barriers, antidumping practices fall under the category of:

What are the areas primarily focused in the Omnibus Trade and Competitiveness Act of 1988?

Which of the following agreements makes it possible for firms to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution?

The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at much faster rates when compared to the developing economies.

The GATT became part of the World Trade Organization in 1995, with the ratification of the Uruguay Round agreements.

Which of the following statements is true with regard to the status of protests against global financial institutions?

Which of the following factors was primarily responsible for the excess production capacity in the U.S. in the first half of the twentieth century?

The Omnibus Trade and Competitiveness act gives the U.S. president authority to restrict sales of a country's products in the U.S. market if that country imposes unfair restrictions on U.S. products.

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.

The marketing manager for Grand Products wants to export the company's range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of _____.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.

Which of the following arguments regarding the need for protectionism is recognized by economists as valid?

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

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

Which of the following is true of the GATT?

Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. local markets.

A VER is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?

Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?

Which of the following falls on the minus side of the U.S. balance of payments?

Which of the following is an example of a nontariff trade barrier?

Which of the following is an adverse consequence of globalization?

In the context of nontariff barriers, antidumping practices fall under the category of:

What are the areas primarily focused in the Omnibus Trade and Competitiveness Act of 1988?

Which of the following agreements makes it possible for firms to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution?

The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at much faster rates when compared to the developing economies.

The GATT became part of the World Trade Organization in 1995, with the ratification of the Uruguay Round agreements.

Which of the following statements is true with regard to the status of protests against global financial institutions?

Which of the following factors was primarily responsible for the excess production capacity in the U.S. in the first half of the twentieth century?

The Omnibus Trade and Competitiveness act gives the U.S. president authority to restrict sales of a country's products in the U.S. market if that country imposes unfair restrictions on U.S. products.

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.

The marketing manager for Grand Products wants to export the company's range of beer products to a Gulf country. However, he discovers that there is a complete restriction on the import of any form of liquor into that country. This is an accurate example of _____.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.

Which of the following arguments regarding the need for protectionism is recognized by economists as valid?

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

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