Question 1

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Accepted Answer

A) True 
 B)False

Question 2

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

Accepted Answer

A) Embargo 
B) Duty 
C) Dumping 
D) Export quota 
E) Dropping 
A) Embargo 
B) Duty 
C) Dumping 
D) Export quota 
E) Dropping

Question 3

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Accepted Answer

A) monetary export control. 
B) nontariff barrier. 
C) currency devaluation. 
D) currency control. 
E) foreign-exchange control. 
A) monetary export control. 
B) nontariff barrier. 
C) currency devaluation. 
D) currency control. 
E) foreign-exchange control.

Question 4

Foreign licensing is similar to

Accepted Answer

A) starting from scratch. 
B) franchising. 
C) wholesaling. 
D) establishing a subsidiary in another country. 
E) establishing a sales office in a foreign country. 
A) starting from scratch. 
B) franchising. 
C) wholesaling. 
D) establishing a subsidiary in another country. 
E) establishing a sales office in a foreign country.

Question 5

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

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 medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The company wants to maintain control over its sales while gaining experience in foreign markets. Which option would be best for this company?

Accepted Answer

A) Licensing its products for sale in foreign countries 
B) Selling its products outright to an export/import merchant 
C) Establishing its own sales offices in foreign countries 
D) Developing totally owned facilities in a foreign market 
E) Hiring an export/import agent to assist with foreign sales 
A) Licensing its products for sale in foreign countries 
B) Selling its products outright to an export/import merchant 
C) Establishing its own sales offices in foreign countries 
D) Developing totally owned facilities in a foreign market 
E) Hiring an export/import agent to assist with foreign sales

Question 8

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 9

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A) They will be faced with the highest demand ever. 
B) They will become more competitive. 
C) They will be put out of business because they cannot compete with the prices. 
D) They will try to dump their toys in other countries. 
E) Their revenues will decrease, but their long-term success will not be affected. 
A) They will be faced with the highest demand ever. 
B) They will become more competitive. 
C) They will be put out of business because they cannot compete with the prices. 
D) They will try to dump their toys in other countries. 
E) Their revenues will decrease, but their long-term success will not be affected.

Question 10

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A) embargo. 
B) stoppage. 
C) stay. 
D) closure. 
E) barricade. 
A) embargo. 
B) stoppage. 
C) stay. 
D) closure. 
E) barricade.

Question 11

When it built production lines in the United States, BMW engaged in what type of international expansion?

Accepted Answer

A) Totally owned facilities 
B) Joint venture 
C) Strategic alliance 
D) Indirect investment 
E) Exporting 
A) Totally owned facilities 
B) Joint venture 
C) Strategic alliance 
D) Indirect investment 
E) Exporting

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Accepted Answer

A) A multilateral development bank 
B) The International Development Bank 
C) An international bank 
D) The Federal Reserve 
E) The International Monetary Fund 
A) A multilateral development bank 
B) The International Development Bank 
C) An international bank 
D) The Federal Reserve 
E) The International Monetary Fund

Question 14

The IDB, ADB, and EBRD are all examples of

Accepted Answer

A) community banks. 
B) foreign banks. 
C) economic communities. 
D) world trade organizations. 
E) multilateral development banks. 
A) community banks. 
B) foreign banks. 
C) economic communities. 
D) world trade organizations. 
E) multilateral development banks.

Question 15

Another name for an import duty is a(n)

Accepted Answer

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

Question 16

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 17

Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?

Accepted Answer

A) It is extremely likely because almost all U.S.companies export their products and services to foreign countries. 
B) It is quite likely because about 75 percent of all companies in the United States are now exporters due to the growth of the Internet. 
C) Roughly half of U.S.companies export products and services, so there is about a 50 percent chance that Jacque's company exports. 
D) About one-third of the companies in the United States export to foreign countries, therefore Jacque's company has about a 33 percent chance of being an exporter. 
E) Despite use of the Internet, exporting is still mostly done by large corporations, so Jacque's company is unlikely to export. 
A) It is extremely likely because almost all U.S.companies export their products and services to foreign countries. 
B) It is quite likely because about 75 percent of all companies in the United States are now exporters due to the growth of the Internet. 
C) Roughly half of U.S.companies export products and services, so there is about a 50 percent chance that Jacque's company exports. 
D) About one-third of the companies in the United States export to foreign countries, therefore Jacque's company has about a 33 percent chance of being an exporter. 
E) Despite use of the Internet, exporting is still mostly done by large corporations, so Jacque's company is unlikely to export.

Question 18

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 19

Define tariff. What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

Accepted Answer

A tariff, also known as an import duty,

Question 20

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

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Foreign licensing is similar to

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

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

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

A complete halt to trading with a particular nation or in a particular product is called a(n)

When it built production lines in the United States, BMW engaged in what type of international expansion?

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

____ is an internationally supported bank that provides loans to developing countries to help them grow.

The IDB, ADB, and EBRD are all examples of

Another name for an import duty is a(n)

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

Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?

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

Define tariff. What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

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

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

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Foreign licensing is similar to

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

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

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

A complete halt to trading with a particular nation or in a particular product is called a(n)

When it built production lines in the United States, BMW engaged in what type of international expansion?

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

____ is an internationally supported bank that provides loans to developing countries to help them grow.

The IDB, ADB, and EBRD are all examples of

Another name for an import duty is a(n)

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

Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?

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

Define tariff. What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

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

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