Question 1

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

Accepted Answer

A) True 
 B)False

Question 2

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

Accepted Answer

A) import quota. 
B) currency devaluation. 
C) prohibition. 
D) embargo. 
E) dumping restriction. 
A) import quota. 
B) currency devaluation. 
C) prohibition. 
D) embargo. 
E) dumping restriction.

Question 3

What are nontariff barriers? How do nontariff barriers restrict international trade?

Accepted Answer

A nontariff barrier is a nontax measure

Question 4

An unfavorable trade balance is called a(n)

Accepted Answer

A) balance of trade. 
B) trade deficit. 
C) currency devaluation. 
D) balance of payments. 
E) import balance. 
A) balance of trade. 
B) trade deficit. 
C) currency devaluation. 
D) balance of payments. 
E) import balance.

Question 5

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

Accepted Answer

A) Export/import merchant agreement 
B) Export/import agent agreement 
C) Joint venture 
D) Licensing 
E) Multinational agreement 
A) Export/import merchant agreement 
B) Export/import agent agreement 
C) Joint venture 
D) Licensing 
E) Multinational agreement

Question 6

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.

Accepted Answer

A) exporting 
B) strategic alliance 
C) licensing 
D) countertrade 
E) bill of lading 
A) exporting 
B) strategic alliance 
C) licensing 
D) countertrade 
E) bill of lading

Question 7

Which of the following represents the highest level of involvement in international business?

Accepted Answer

A) Strategic alliance 
B) Totally owned facilities 
C) Multinational firm 
D) Joint ventures 
E) Exporting 
A) Strategic alliance 
B) Totally owned facilities 
C) Multinational firm 
D) Joint ventures 
E) Exporting

Question 8

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

Accepted Answer

A) hopeless industry. 
B) soft industry. 
C) infant industry. 
D) protected industry. 
E) toddler industry. 
A) hopeless industry. 
B) soft industry. 
C) infant industry. 
D) protected industry. 
E) toddler industry.

Question 9

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Accepted Answer

A) export-import merchant 
B) international bank 
C) joint venture 
D) export-import agent 
E) trading broker 
A) export-import merchant 
B) international bank 
C) joint venture 
D) export-import agent 
E) trading broker

Question 10

The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a(n)

Accepted Answer

A) import duty. 
B) foreign exchange control. 
C) import quota. 
D) embargo. 
E) export duty. 
A) import duty. 
B) foreign exchange control. 
C) import quota. 
D) embargo. 
E) export duty.

Question 11

A tariff is a tax levied on a particular foreign product entering a country.

Accepted Answer

A) True 
 B)False

Question 12

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

Accepted Answer

A) True 
 B)False

Question 13

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 14

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Accepted Answer

A) absolute advantage. 
B) comparative advantage. 
C) advantage based on efficient production. 
D) trade deficit. 
E) lot of diamonds. 
A) absolute advantage. 
B) comparative advantage. 
C) advantage based on efficient production. 
D) trade deficit. 
E) lot of diamonds.

Question 15

Mention some of the most frequently cited reasons for restricting trade.

Accepted Answer

In addition to political reasons for tra

Question 16

Several European countries have 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) a cartel. 
D) a multinational. 
E) an orderly marketing agreement. 
A) a GATT. 
B) the European Union. 
C) a cartel. 
D) a multinational. 
E) an orderly marketing agreement.

Question 17

CAFTA, NAFTA, OECD, and OPEC are all examples of

Accepted Answer

A) political organizations. 
B) peace treaties. 
C) international economic communities. 
D) World Trade Organization members. 
E) democratic organizations. 
A) political organizations. 
B) peace treaties. 
C) international economic communities. 
D) World Trade Organization members. 
E) democratic organizations.

Question 18

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 19

When a coffee chain in Portland, Oregon purchases coffee from Colombia, South America, it

Accepted Answer

A) is importing the coffee. 
B) is exporting the coffee. 
C) has an absolute advantage. 
D) is decreasing the balance-of-trade deficit. 
E) is making a big mistake. 
A) is importing the coffee. 
B) is exporting the coffee. 
C) has an absolute advantage. 
D) is decreasing the balance-of-trade deficit. 
E) is making a big mistake.

Question 20

Which of the following functions is not performed by a trading company?

Accepted Answer

A) Taking title to products 
B) Manufacturing products for foreign trading 
C) Linking buyers and sellers in different countries 
D) Buying products at the lowest price consistent with quality 
E) Performing activities necessary to move goods to the foreign country 
A) Taking title to products 
B) Manufacturing products for foreign trading 
C) Linking buyers and sellers in different countries 
D) Buying products at the lowest price consistent with quality 
E) Performing activities necessary to move goods to the foreign country

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

What are nontariff barriers? How do nontariff barriers restrict international trade?

An unfavorable trade balance is called a(n)

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.

Which of the following represents the highest level of involvement in international business?

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a(n)

A tariff is a tax levied on a particular foreign product entering a country.

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Mention some of the most frequently cited reasons for restricting trade.

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

CAFTA, NAFTA, OECD, and OPEC are all examples of

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

When a coffee chain in Portland, Oregon purchases coffee from Colombia, South America, it

Which of the following functions is not performed by a trading company?

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

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Exam 3: Exploring Global Business

Comparative advantage is the ability to produce a specific product more efficiently than any other nation.

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

What are nontariff barriers? How do nontariff barriers restrict international trade?

An unfavorable trade balance is called a(n)

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name. This is a(n) ____ agreement.

Which of the following represents the highest level of involvement in international business?

Because it has not been around long enough to establish itself, the Russian automobile industry could be classified as a(n)

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a(n)

A tariff is a tax levied on a particular foreign product entering a country.

A firm that has no ties to a specific nation or region and operates on a worldwide scale is called a national enterprise.

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Mention some of the most frequently cited reasons for restricting trade.

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

CAFTA, NAFTA, OECD, and OPEC are all examples of

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

When a coffee chain in Portland, Oregon purchases coffee from Colombia, South America, it

Which of the following functions is not performed by a trading company?

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