Question 1

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

Accepted Answer

A) Amendments to the General Agreement on Tariffs and Trade 
B) Negotiations sponsored by GATT to reduce trade restrictions 
C) A series of disagreements among the members of GATT 
D) World Trade Organization meetings to encourage trade 
E) Political negotiations among many of the world's nations 
A) Amendments to the General Agreement on Tariffs and Trade 
B) Negotiations sponsored by GATT to reduce trade restrictions 
C) A series of disagreements among the members of GATT 
D) World Trade Organization meetings to encourage trade 
E) Political negotiations among many of the world's nations

Question 2

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete. This is referred to as

Accepted Answer

A) exporting. 
B) importing. 
C) an embargo. 
D) dropping. 
E) dumping. 
A) exporting. 
B) importing. 
C) an embargo. 
D) dropping. 
E) dumping.

Question 3

Eleven republics of the former Soviet Union are members of the

Accepted Answer

A) Former Soviet Republics Trade Agreement. 
B) Organization of Petroleum Exporting Countries. 
C) Association of Asian Nations. 
D) European and Asian Economic Union. 
E) Commonwealth of Independent States. 
A) Former Soviet Republics Trade Agreement. 
B) Organization of Petroleum Exporting Countries. 
C) Association of Asian Nations. 
D) European and Asian Economic Union. 
E) Commonwealth of Independent States.

Question 4

In addition to political considerations, all of the following are reasons for trade restrictions except

Accepted Answer

A) equalizing a nation's balance of payments. 
B) protecting new and weak industries. 
C) protecting the health of citizens. 
D) protecting national security. 
E) all of the above are reasons for trade restrictions. 
A) equalizing a nation's balance of payments. 
B) protecting new and weak industries. 
C) protecting the health of citizens. 
D) protecting national security. 
E) all of the above are reasons for trade restrictions.

Question 5

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

Accepted Answer

A) multinational enterprise. 
B) joint venture. 
C) exporting business. 
D) licensing firm. 
E) none of the above. 
A) multinational enterprise. 
B) joint venture. 
C) exporting business. 
D) licensing firm. 
E) none of the above.

Question 6

International business includes all business activities that involve exchanges across state boundaries.

Accepted Answer

A) True 
 B)False

Question 7

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a

Accepted Answer

A) comparative advantage. 
B) trade deficit. 
C) balance of payments. 
D) negative output. 
E) positive balance of trade.Landing Service 
A) comparative advantage. 
B) trade deficit. 
C) balance of payments. 
D) negative output. 
E) positive balance of trade.Landing Service

Question 8

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

Accepted Answer

A) revenue tariff. 
B) preservation tariff. 
C) embargo. 
D) nontariff barrier. 
E) protective tariff. 
A) revenue tariff. 
B) preservation tariff. 
C) embargo. 
D) nontariff barrier. 
E) protective tariff.

Question 9

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Accepted Answer

A) devalues 
B) increases 
C) balances 
D) decreases 
E) restricts 
A) devalues 
B) increases 
C) balances 
D) decreases 
E) restricts

Question 10

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

Accepted Answer

A) a currency devaluation. 
B) a reduced exchange rate. 
C) a deficit money market. 
D) a compressed economy. 
E) none of the above. 
A) a currency devaluation. 
B) a reduced exchange rate. 
C) a deficit money market. 
D) a compressed economy. 
E) none of the above.

Question 11

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Accepted Answer

A) Licensing 
B) Exporting 
C) Joint venture 
D) Countertrade 
E) Strategic alliance 
A) Licensing 
B) Exporting 
C) Joint venture 
D) Countertrade 
E) Strategic alliance

Question 12

How do trade restrictions typically affect consumers?

Accepted Answer

Trade restrictions usually impact consum

Question 13

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations. This would be an example of a(n)

Accepted Answer

A) world trade organization. 
B) peace agreement. 
C) economic community. 
D) free trade agreement. 
E) global marketplace. 
A) world trade organization. 
B) peace agreement. 
C) economic community. 
D) free trade agreement. 
E) global marketplace.

Question 14

​The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Accepted Answer

A) ​the United States. 
B) ​Panama. 
C) ​Colombia. 
D) ​Bolivia. 
A) ​the United States. 
B) ​Panama. 
C) ​Colombia. 
D) ​Bolivia.

Question 15

Which of the following statements is true about NAFTA?

Accepted Answer

A) It is a free trade agreement between Canada and the United States. 
B) It was initiated by the United States. 
C) It is built on the Canadian Free Trade Agreement (FT
A) . 
D) It immediately eliminated tariffs among the United States, Mexico, and Canada. 
E) It was enacted in 2002 and encourages free trade. 
A) It is a free trade agreement between Canada and the United States. 
B) It was initiated by the United States. 
C) It is built on the Canadian Free Trade Agreement (FT
A) . 
D) It immediately eliminated tariffs among the United States, Mexico, and Canada. 
E) It was enacted in 2002 and encourages free trade.

Question 16

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 clos
-Refer to Landing Service. Because the company is known for its ability to produce lawn furniture more efficiently than any other company in the world, the company must have a(n) ____ advantage.

Accepted Answer

A) total 
B) relative 
C) comparative 
D) proportional 
E) absolute 
A) total 
B) relative 
C) comparative 
D) proportional 
E) absolute

Question 17

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 clos
-Refer to Landing Service. What type of tax has the Italian government imposed on the company?

Accepted Answer

A) Export duty 
B) Embargo 
C) Revenue tariff 
D) Protective tariff 
E) Nontariff barrier 
A) Export duty 
B) Embargo 
C) Revenue tariff 
D) Protective tariff 
E) Nontariff barrier

Question 18

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices. These nations will most likely model the unit after

Accepted Answer

A) EU. 
B) OPEC. 
C) NAFTA. 
D) ASEAN. 
E) GATT. 
A) EU. 
B) OPEC. 
C) NAFTA. 
D) ASEAN. 
E) GATT.

Question 19

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

Accepted Answer

A) OPEC 
B) IMF 
C) WTO 
D) EEC 
E) LAFTA 
A) OPEC 
B) IMF 
C) WTO 
D) EEC 
E) LAFTA

Question 20

The United States has enjoyed a trade surplus during the last two decades.

Accepted Answer

A) True 
 B)False

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete. This is referred to as

Eleven republics of the former Soviet Union are members of the

In addition to political considerations, all of the following are reasons for trade restrictions except

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

International business includes all business activities that involve exchanges across state boundaries.

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

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

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

How do trade restrictions typically affect consumers?

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations. This would be an example of a(n)

The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Which of the following statements is true about NAFTA?

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices. These nations will most likely model the unit after

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

The United States has enjoyed a trade surplus during the last two decades.

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

What are the Kennedy Round, the Tokyo Round, the Uruguay Round, and the Doha Round?

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete. This is referred to as

Eleven republics of the former Soviet Union are members of the

In addition to political considerations, all of the following are reasons for trade restrictions except

When a business has plants located in several foreign countries without ties to any specific nation or region, it is called a(n)

International business includes all business activities that involve exchanges across state boundaries.

If the Land of Mercury had total exports of $150 billion and total imports of $234 billion, it had a

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

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

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

How do trade restrictions typically affect consumers?

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations. This would be an example of a(n)

​The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in

Which of the following statements is true about NAFTA?

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices. These nations will most likely model the unit after

If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, the United States may work through ____ in removing preset trade barriers so that the small country can more easily purchase the aircraft.

The United States has enjoyed a trade surplus during the last two decades.

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

The Inter-American Development Bank is the largest and oldest regional bank, created in 1959 by 19 Latin American countries and the United States. It is headquartered in