Question 1

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Accepted Answer

A) True 
 B)False  True

Question 2

Due to worldwide trade restrictions, international business is declining in volume.

Accepted Answer

A) True 
 B)False  False

Question 3

When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion, it had a trade deficit.

Accepted Answer

A) True 
 B)False  True

Question 4

If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to

Accepted Answer

A) protect national security. 
B) protect domestic jobs. 
C) retaliate for Korea's tariffs. 
D) lower prices for consumers. 
E) protect an infant industry. 
A) protect national security. 
B) protect domestic jobs. 
C) retaliate for Korea's tariffs. 
D) lower prices for consumers. 
E) protect an infant industry.

Question 5

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 6

All five multilateral development banks are supported by the industrialized nations, including the United States.

Accepted Answer

A) True 
 B)False

Question 7

The United States wants to limit the amount of dollars that another country can obtain. The best way to accomplish this is to

Accepted Answer

A) impose an import duty. 
B) establish a foreign-exchange control. 
C) declare an embargo. 
D) set an import quota. 
E) impose an export duty. 
A) impose an import duty. 
B) establish a foreign-exchange control. 
C) declare an embargo. 
D) set an import quota. 
E) impose an export duty.

Question 8

What is an economic community? Describe major international economic communities.

Accepted Answer

An economic community is an organization

Question 9

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 a(n)

Accepted Answer

A) economic community. 
B) free trade association. 
C) common market. 
D) international alliance. 
E) none of the above. 
A) economic community. 
B) free trade association. 
C) common market. 
D) international alliance. 
E) none of the above.

Question 10

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Initially, the managers believed that ____ would be the best option for entering the foreign market.

Accepted Answer

A) exporting 
B) creating a joint venture 
C) licensing 
D) establishing a strategic alliance 
E) a merger 
A) exporting 
B) creating a joint venture 
C) licensing 
D) establishing a strategic alliance 
E) a merger

Question 11

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States 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 12

Which of the following is a potential drawback of licensing?

Accepted Answer

A) If quality is compromised, it may reflect poorly on the company providing the license. 
B) Licensing will provide the original producer with much foreign marketing experience. 
C) It is a relatively inexpensive way to market your product internationally. 
D) It is an extremely expensive and highly involved method of international expansion. 
E) It provides no compensation for the original company. 
A) If quality is compromised, it may reflect poorly on the company providing the license. 
B) Licensing will provide the original producer with much foreign marketing experience. 
C) It is a relatively inexpensive way to market your product internationally. 
D) It is an extremely expensive and highly involved method of international expansion. 
E) It provides no compensation for the original company.

Question 13

​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 14

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 the above 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 the above are ways to export a product to a foreign market.

Question 15

The land of Narnack has very infertile soil but a large supply of oil. What action should Narnack take? Narnack should

Accepted Answer

A) specialize in the production of crude oil and trade this for grain and other food products. 
B) grow food anyway because its people will need it for survival. 
C) focus on attracting tourists to its country and thus purchase the needed supplies of food. 
D) specialize in the production of food products such as cereals and bread. 
E) import oil to satisfy the country's need for gasoline. 
A) specialize in the production of crude oil and trade this for grain and other food products. 
B) grow food anyway because its people will need it for survival. 
C) focus on attracting tourists to its country and thus purchase the needed supplies of food. 
D) specialize in the production of food products such as cereals and bread. 
E) import oil to satisfy the country's need for gasoline.

Question 16

The United States is a member of the ____, which is the successor to GATT.

Accepted Answer

A) World Trade Organization 
B) North American Free Trade Agreement 
C) United Nations 
D) Economic Community 
E) Kennedy Round 
A) World Trade Organization 
B) North American Free Trade Agreement 
C) United Nations 
D) Economic Community 
E) Kennedy Round

Question 17

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

Accepted Answer

A) True 
 B)False

Question 18

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Accepted Answer

A) True 
 B)False

Question 19

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

Accepted Answer

A) import duty. 
B) import deficit. 
C) trade embargo. 
D) import tariff. 
E) import quota. 
A) import duty. 
B) import deficit. 
C) trade embargo. 
D) import tariff. 
E) import quota.

Question 20

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.

Accepted Answer

A) True 
 B)False

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Due to worldwide trade restrictions, international business is declining in volume.

When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion, it had a trade deficit.

If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to

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

All five multilateral development banks are supported by the industrialized nations, including the United States.

The United States wants to limit the amount of dollars that another country can obtain. The best way to accomplish this is to

What is an economic community? Describe major international economic communities.

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 a(n)

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Initially, the managers believed that ____ would be the best option for entering the foreign market.

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in

Which of the following is a potential drawback of licensing?

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

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

The land of Narnack has very infertile soil but a large supply of oil. What action should Narnack take? Narnack should

The United States is a member of the ____, which is the successor to GATT.

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

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 and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters

Exam 3: Exploring Global Business

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Due to worldwide trade restrictions, international business is declining in volume.

When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion, it had a trade deficit.

If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to

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

All five multilateral development banks are supported by the industrialized nations, including the United States.

The United States wants to limit the amount of dollars that another country can obtain. The best way to accomplish this is to

What is an economic community? Describe major international economic communities.

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 a(n)

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Initially, the managers believed that ____ would be the best option for entering the foreign market.

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in

Which of the following is a potential drawback of licensing?

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

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

The land of Narnack has very infertile soil but a large supply of oil. What action should Narnack take? Narnack should

The United States is a member of the ____, which is the successor to GATT.

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

The Doha Round of negotiations focuses on industrial and nontariff barriers, agriculture, services, and easing trade rules.

Exploring the World of Business and Economics

Being Ethical and Socially Responsible

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 and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Understanding Social Media and E-Business

Using Management Information Systems and Accounting Information

Mastering Financial Management

Filters

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