Question 1

Strategic alliances and ____ are very similar.

Accepted Answer

A) trading companies 
B) most-favored-nation status 
C) licensing agreements 
D) joint ventures 
E) corporate mergers 
A) trading companies 
B) most-favored-nation status 
C) licensing agreements 
D) joint ventures 
E) corporate mergers

Question 2

Countertrade is losing its importance in international trade.

Accepted Answer

A) True 
 B)False

Question 3

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

Accepted Answer

A) True 
 B)False

Question 4

Arguments for imposing trade restrictions include

Accepted Answer

A) the misallocation of international resources. 
B) equalizing a nation's balance of payments. 
C) higher prices for consumers. 
D) restriction of consumers' choices. 
E) none of the above. 
A) the misallocation of international resources. 
B) equalizing a nation's balance of payments. 
C) higher prices for consumers. 
D) restriction of consumers' choices. 
E) none of the above.

Question 5

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Accepted Answer

A) provide markets for its products 
B) have its name in The Wall Street Journal 
C) have its exports taxed 
D) be involved in international politics 
E) control the governments of other countries 
A) provide markets for its products 
B) have its name in The Wall Street Journal 
C) have its exports taxed 
D) be involved in international politics 
E) control the governments of other countries

Question 6

Arguments for the government imposing restrictions on foreign trade include

Accepted Answer

A) the loss of jobs in foreign countries. 
B) advancing technology will harm the country's economy. 
C) restriction of consumers' choices. 
D) protection of the health of its citizens. 
E) helping the foreign country become more competitive. 
A) the loss of jobs in foreign countries. 
B) advancing technology will harm the country's economy. 
C) restriction of consumers' choices. 
D) protection of the health of its citizens. 
E) helping the foreign country become more competitive.

Question 7

When was GATT first established?

Accepted Answer

A) At the turn of the twentieth century 
B) Following World War I 
C) At the end of World War II 
D) During the Great Depression 
E) In the early 1960s 
A) At the turn of the twentieth century 
B) Following World War I 
C) At the end of World War II 
D) During the Great Depression 
E) In the early 1960s

Question 8

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Accepted Answer

A) protective tariff. 
B) revenue tariff. 
C) dumping duty. 
D) import quota. 
E) excise tax. 
A) protective tariff. 
B) revenue tariff. 
C) dumping duty. 
D) import quota. 
E) excise tax.

Question 9

Political considerations usually are involved in a country's decision to impose a trade embargo.

Accepted Answer

A) True 
 B)False

Question 10

What might be inferred if a nation has a continual deficit in its balance of payments?

Accepted Answer

If a country has a continual deficit in

Question 11

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Accepted Answer

A) exporting 
B) importing 
C) trading 
D) dumping 
E) taxing 
A) exporting 
B) importing 
C) trading 
D) dumping 
E) taxing

Question 12

Quotas may be set on worldwide imports or on imports from a specific country.

Accepted Answer

A) True 
 B)False

Question 13

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Accepted Answer

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

Question 14

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

Accepted Answer

A) GATT 
B) Trade Information Center 
C) World Trade Association 
D) U.S.Export Assistance Centers 
E) U.S.and Foreign Commercial Services 
A) GATT 
B) Trade Information Center 
C) World Trade Association 
D) U.S.Export Assistance Centers 
E) U.S.and Foreign Commercial Services

Question 15

​Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.

Accepted Answer

A) ​the International Monetary Fund. 
B) ​the European Bank for Reconstruction and Development. 
C) ​the World Bank. 
D) ​the Federal Reserve Bank. 
A) ​the International Monetary Fund. 
B) ​the European Bank for Reconstruction and Development. 
C) ​the World Bank. 
D) ​the Federal Reserve Bank.

Question 16

What is dumping? Why do domestic manufacturers obtain antidumping duty through the government?

Accepted Answer

Dumping is the exportation of large quan

Question 17

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Which of the following options is not one of the steps needed for entering an international market?

Accepted Answer

A) Contact local government to see if taxes on trade can be waived. 
B) Establish an overseas distribution network. 
C) Set export prices and payment terms, methods, and techniques. 
D) Identify key foreign markets for the product. 
E) Identify exportable products. 
A) Contact local government to see if taxes on trade can be waived. 
B) Establish an overseas distribution network. 
C) Set export prices and payment terms, methods, and techniques. 
D) Identify key foreign markets for the product. 
E) Identify exportable products.

Question 18

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

Accepted Answer

A) True 
 B)False

Question 19

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

Accepted Answer

A) auction agreement. 
B) countertrade. 
C) strategic transaction. 
D) licensing agreement. 
E) free-trade agreement. 
A) auction agreement. 
B) countertrade. 
C) strategic transaction. 
D) licensing agreement. 
E) free-trade agreement.

Question 20

U.S. trade restrictions benefit only a few industries while harming many others.

Accepted Answer

A) True 
 B)False

Strategic alliances and ____ are very similar.

Countertrade is losing its importance in international trade.

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

Arguments for imposing trade restrictions include

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Arguments for the government imposing restrictions on foreign trade include

When was GATT first established?

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Political considerations usually are involved in a country's decision to impose a trade embargo.

What might be inferred if a nation has a continual deficit in its balance of payments?

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Quotas may be set on worldwide imports or on imports from a specific country.

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.

What is dumping? Why do domestic manufacturers obtain antidumping duty through the government?

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which of the following options is not one of the steps needed for entering an international market?

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

U.S. trade restrictions benefit only a few industries while harming many others.

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

Strategic alliances and ____ are very similar.

Countertrade is losing its importance in international trade.

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

Arguments for imposing trade restrictions include

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Arguments for the government imposing restrictions on foreign trade include

When was GATT first established?

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Political considerations usually are involved in a country's decision to impose a trade embargo.

What might be inferred if a nation has a continual deficit in its balance of payments?

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Quotas may be set on worldwide imports or on imports from a specific country.

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

​Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.

What is dumping? Why do domestic manufacturers obtain antidumping duty through the government?

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which of the following options is not one of the steps needed for entering an international market?

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

U.S. trade restrictions benefit only a few industries while harming many others.

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

Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.