Question 1

Why is balance of payments a much broader concept than balance of trade?

Accepted Answer

A nation's balance of payments is the to

Question 2

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

Accepted Answer

A) True 
 B)False

Question 3

The ____ gave President Kennedy the authority to negotiate reciprocal trade agreements that could reduce U.S. tariffs by as much as 50 percent.

Accepted Answer

A) Foreign Corrupt Practices Act 
B) Trade Expansion Act 
C) Securities Exchange Act 
D) Federal Trade Commission Act 
E) Robinson-Patman Act 
A) Foreign Corrupt Practices Act 
B) Trade Expansion Act 
C) Securities Exchange Act 
D) Federal Trade Commission Act 
E) Robinson-Patman Act

Question 4

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

Accepted Answer

A) WTO. 
B) economic community. 
C) cartel. 
D) multinational. 
E) orderly marketing agreement. 
A) WTO. 
B) economic community. 
C) cartel. 
D) multinational. 
E) orderly marketing agreement.

Question 5

​NAFTA member nations include those located in

Accepted Answer

A) ​North America. 
B) ​North Atlantic. 
C) ​North Africa. 
D) ​Northern Europe. 
A) ​North America. 
B) ​North Atlantic. 
C) ​North Africa. 
D) ​Northern Europe.

Question 6

Trade restrictions usually have no immediate or long-term economic consequences.

Accepted Answer

A) True 
 B)False

Question 7

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the nation's balance of trade.

Accepted Answer

A) True 
 B)False

Question 8

​When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid, the go-between representative they employ is (are)

Accepted Answer

A) ​the local domestic banks involved in international business. 
B) ​sales agents. 
C) ​international trade organizations. 
D) ​the World Bank 
A) ​the local domestic banks involved in international business. 
B) ​sales agents. 
C) ​international trade organizations. 
D) ​the World Bank

Question 9

Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

Accepted Answer

A) Janet's bank receives a letter of credit from the importer's bank. 
B) it receives a letter of credit from Janet's bank. 
C) its bank receives a draft from the importer's bank. 
D) Janet receives a bill of lading. 
E) the ultimate consumer sends a bill of lading to the exporter's bank. 
A) Janet's bank receives a letter of credit from the importer's bank. 
B) it receives a letter of credit from Janet's bank. 
C) its bank receives a draft from the importer's bank. 
D) Janet receives a bill of lading. 
E) the ultimate consumer sends a bill of lading to the exporter's bank.

Question 10

The U.S. government created the ____ as a comprehensive source for U.S. companies seeking information on federal programs and activities that support U.S. exports.

Accepted Answer

A) Export Legal Assistance Network 
B) Trade Information Center 
C) National Export Strategy 
D) ADB 
E) Federal Trade Commission 
A) Export Legal Assistance Network 
B) Trade Information Center 
C) National Export Strategy 
D) ADB 
E) Federal Trade Commission

Question 11

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Accepted Answer

A) True 
 B)False

Question 12

Landing Service
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability to produce furniture more efficiently than any other company in the nation. In truth, no other companies in any other nation come close. Landing Service has shipped many of its products internationally. In fact, 80 percent of its profits come from international sales. However, the Italian government has imposed a tax on imported furniture items to protect local companies. The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out. However, after Landing Service contacted the organization that had the power to mediate this situation, the furniture company realized that the taxation it was subjected to was legal and that there was nothing it could do about it.
-Refer to Landing Service. Landing Service must have contacted which of these organizations to mediate regarding unfair treatment by foreign governments?

Accepted Answer

A) COPPA 
B) GATT 
C) WTO 
D) EU 
E) OPEC 
A) COPPA 
B) GATT 
C) WTO 
D) EU 
E) OPEC

Question 13

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Accepted Answer

A country's balance of trade is the tota

Question 14

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

Accepted Answer

A) trade deficit. 
B) balance of payments. 
C) unfavorable balance. 
D) balance of trade. 
E) favorable balance. 
A) trade deficit. 
B) balance of payments. 
C) unfavorable balance. 
D) balance of trade. 
E) favorable balance.

Question 15

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg. This organization is known as the

Accepted Answer

A) General Agreement on Tariffs and Trade. 
B) European Economic Area. 
C) European Free Trade Agreement. 
D) European Union. 
E) Euro Economic Alliance. 
A) General Agreement on Tariffs and Trade. 
B) European Economic Area. 
C) European Free Trade Agreement. 
D) European Union. 
E) Euro Economic Alliance.

Question 16

Who are the members of NAFTA?

Accepted Answer

A) The United States, Canada, and Mexico 
B) Greenland, Iceland, and Canada 
C) Guatemala, Honduras, and Mexico 
D) The United States, Mexico, and Japan 
E) The United States, Canada, and the United Kingdom 
A) The United States, Canada, and Mexico 
B) Greenland, Iceland, and Canada 
C) Guatemala, Honduras, and Mexico 
D) The United States, Mexico, and Japan 
E) The United States, Canada, and the United Kingdom

Question 17

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

Accepted Answer

A) embargos. 
B) currency devaluations. 
C) import quotas. 
D) quality import restrictions. 
E) bureaucratic red tape. 
A) embargos. 
B) currency devaluations. 
C) import quotas. 
D) quality import restrictions. 
E) bureaucratic red tape.

Question 18

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of panyments?

Accepted Answer

A) The Export-Import Bank of the United States 
B) The Asian Development Bank 
C) The International Monetary Fund 
D) The Inter-American Development Bank 
E) The Multilateral Development Bank 
A) The Export-Import Bank of the United States 
B) The Asian Development Bank 
C) The International Monetary Fund 
D) The Inter-American Development Bank 
E) The Multilateral Development Bank

Question 19

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

Accepted Answer

A) True 
 B)False

Question 20

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties. This action is called a(n)

Accepted Answer

A) embargo. 
B) import quota. 
C) trade ban. 
D) foreign-exchange control. 
E) import duty. 
A) embargo. 
B) import quota. 
C) trade ban. 
D) foreign-exchange control. 
E) import duty.

Why is balance of payments a much broader concept than balance of trade?

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

The ____ gave President Kennedy the authority to negotiate reciprocal trade agreements that could reduce U.S. tariffs by as much as 50 percent.

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

NAFTA member nations include those located in

Trade restrictions usually have no immediate or long-term economic consequences.

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the nation's balance of trade.

When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid, the go-between representative they employ is (are)

Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

The U.S. government created the ____ as a comprehensive source for U.S. companies seeking information on federal programs and activities that support U.S. exports.

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg. This organization is known as the

Who are the members of NAFTA?

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of panyments?

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties. This action is called a(n)

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

Why is balance of payments a much broader concept than balance of trade?

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

The ____ gave President Kennedy the authority to negotiate reciprocal trade agreements that could reduce U.S. tariffs by as much as 50 percent.

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

​NAFTA member nations include those located in

Trade restrictions usually have no immediate or long-term economic consequences.

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the nation's balance of trade.

​When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid, the go-between representative they employ is (are)

Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

The U.S. government created the ____ as a comprehensive source for U.S. companies seeking information on federal programs and activities that support U.S. exports.

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

The total flow of money into a country minus the total flow of money out of the country over some period of time is called the country's

One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg. This organization is known as the

Who are the members of NAFTA?

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of panyments?

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

The United States bans Cuban cigars and other Cuban products from entering the United States due to political difficulties. This action is called a(n)

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

NAFTA member nations include those located in

When importers and exporters do not trust one another and want to ensure that the importer receives the promised merchandise and the exporter gets paid, the go-between representative they employ is (are)