Question 1

The Doha Round of negotiations is really not worth the effort.

Accepted Answer

A) True 
 B)False

Question 2

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

Accepted Answer

A) True 
 B)False

Question 3

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Accepted Answer

A) Japan would have a comparative advantage in electronics manufacturing. 
B) Japan would have a positive balance of trade. 
C) The United States would have a comparative advantage in electronics. 
D) Japan would have an absolute advantage in electronics production. 
E) Japan would have a trade deficit with the United States. 
A) Japan would have a comparative advantage in electronics manufacturing. 
B) Japan would have a positive balance of trade. 
C) The United States would have a comparative advantage in electronics. 
D) Japan would have an absolute advantage in electronics production. 
E) Japan would have a trade deficit with the United States.

Question 4

All of the following are reasons against having trade restrictions except

Accepted Answer

A) the loss of jobs. 
B) the misallocation of international resources. 
C) the restriction of consumers' choices. 
D) higher prices for consumers. 
E) the protection of the health of citizens. 
A) the loss of jobs. 
B) the misallocation of international resources. 
C) the restriction of consumers' choices. 
D) higher prices for consumers. 
E) the protection of the health of citizens.

Question 5

Trading companies do not take title to products.

Accepted Answer

A) True 
 B)False

Question 6

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

Accepted Answer

A) True 
 B)False

Question 7

What are multilateral development banks? What is their purpose? Who supports these banks?

Accepted Answer

A multilateral development bank (MDB) is

Question 8

U.S. exports to developing and newly industrialized countries

Accepted Answer

A) have remained stable. 
B) have declined in recent years. 
C) are on the rise. 
D) are prohibited by the U.S.government. 
E) were scheduled to begin in 2009. 
A) have remained stable. 
B) have declined in recent years. 
C) are on the rise. 
D) are prohibited by the U.S.government. 
E) were scheduled to begin in 2009.

Question 9

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

Accepted Answer

A) True 
 B)False

Question 10

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Accepted Answer

A) dumping. 
B) tariffing. 
C) importing. 
D) exporting. 
E) deficit trading. 
A) dumping. 
B) tariffing. 
C) importing. 
D) exporting. 
E) deficit trading.

Question 11

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

Accepted Answer

A) exporting. 
B) shipping. 
C) importing. 
D) expelling. 
E) dumping. 
A) exporting. 
B) shipping. 
C) importing. 
D) expelling. 
E) dumping.

Question 12

If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows and arrows, it has a(n)

Accepted Answer

A) unfavorable balance of trade. 
B) trade deficit. 
C) trade surplus. 
D) negative cash flow. 
E) export slide. 
A) unfavorable balance of trade. 
B) trade deficit. 
C) trade surplus. 
D) negative cash flow. 
E) export slide.

Question 13

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. Their comments are based on the

Accepted Answer

A) infant-industry argument. 
B) goal of equalizing the nation's balance of payments. 
C) national self-sufficiency argument. 
D) goal of protecting the health of citizens. 
E) goals of retaliating for another nation's trade restrictions. 
A) infant-industry argument. 
B) goal of equalizing the nation's balance of payments. 
C) national self-sufficiency argument. 
D) goal of protecting the health of citizens. 
E) goals of retaliating for another nation's trade restrictions.

Question 14

If Procter & Gamble and Reckitt & Colman, makers of Lysol, form a partnership to develop and distribute a disinfectant line of laundry detergent, the partnership would be a(n)

Accepted Answer

A) corporation. 
B) joint venture. 
C) monopoly. 
D) licensing agreement. 
E) international alliance. 
A) corporation. 
B) joint venture. 
C) monopoly. 
D) licensing agreement. 
E) international alliance.

Question 15

When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc. of the United States, Sony made a(n)

Accepted Answer

A) countertrade with Columbia Pictures. 
B) indirect investment in the United States. 
C) direct investment in the United States. 
D) strategic alliance with Columbia Pictures. 
E) exporting agreement with the United States. 
A) countertrade with Columbia Pictures. 
B) indirect investment in the United States. 
C) direct investment in the United States. 
D) strategic alliance with Columbia Pictures. 
E) exporting agreement with the United States.

Question 16

A favorable balance of payments means that

Accepted Answer

A) exports exceed imports. 
B) imports exceed exports. 
C) payments exceed trade. 
D) exports and other payments exceed imports and other receipts. 
E) total receipts exceed total payments. 
A) exports exceed imports. 
B) imports exceed exports. 
C) payments exceed trade. 
D) exports and other payments exceed imports and other receipts. 
E) total receipts exceed total payments.

Question 17

Which of the following best defines balance of trade?

Accepted Answer

A) Purchasing products in other countries and bringing them into one's own country. 
B) The total value of a nation's exports minus the total value of its imports over some period of time. 
C) The total flow of money into the country minus the total flow of money out of the country over some period of time. 
D) The ability to specialize in the production of a specific product and trade it for other needed products. 
E) The ability to produce a certain product more efficiently than any other nation. 
A) Purchasing products in other countries and bringing them into one's own country. 
B) The total value of a nation's exports minus the total value of its imports over some period of time. 
C) The total flow of money into the country minus the total flow of money out of the country over some period of time. 
D) The ability to specialize in the production of a specific product and trade it for other needed products. 
E) The ability to produce a certain product more efficiently than any other nation.

Question 18

What is the General Agreement on Tariffs and Trade (GATT)? What is its primary objective?

Accepted Answer

The General Agreement on Tariffs and Tra

Question 19

Which of the following scenarios would not be considered international business?

Accepted Answer

A) A Chinese manufacturer sells toys to a large toy retailer in the United States. 
B) Intel sells its processors to a computer manufacturer in Korea. 
C) A large jewelry store in England purchases its diamonds from DeBeers in South Africa. 
D) A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky. 
E) French companies purchase crude oil from Saudi Arabia. 
A) A Chinese manufacturer sells toys to a large toy retailer in the United States. 
B) Intel sells its processors to a computer manufacturer in Korea. 
C) A large jewelry store in England purchases its diamonds from DeBeers in South Africa. 
D) A bearing manufacturer in South Carolina sells its parts to a Toyota plant in Kentucky. 
E) French companies purchase crude oil from Saudi Arabia.

Question 20

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing a(n)

Accepted Answer

A) free trade zone. 
B) GATT. 
C) trade deficit. 
D) balance of trade. 
E) import quota. 
A) free trade zone. 
B) GATT. 
C) trade deficit. 
D) balance of trade. 
E) import quota.

The Doha Round of negotiations is really not worth the effort.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

All of the following are reasons against having trade restrictions except

Trading companies do not take title to products.

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

What are multilateral development banks? What is their purpose? Who supports these banks?

U.S. exports to developing and newly industrialized countries

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows and arrows, it has a(n)

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. Their comments are based on the

If Procter & Gamble and Reckitt & Colman, makers of Lysol, form a partnership to develop and distribute a disinfectant line of laundry detergent, the partnership would be a(n)

When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc. of the United States, Sony made a(n)

A favorable balance of payments means that

Which of the following best defines balance of trade?

What is the General Agreement on Tariffs and Trade (GATT)? What is its primary objective?

Which of the following scenarios would not be considered international business?

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing 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

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Exam 3: Exploring Global Business

The Doha Round of negotiations is really not worth the effort.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

All of the following are reasons against having trade restrictions except

Trading companies do not take title to products.

Devaluation decreases the cost of foreign goods and increases the cost of domestic goods to foreign firms.

What are multilateral development banks? What is their purpose? Who supports these banks?

U.S. exports to developing and newly industrialized countries

It is appropriate for a country to impose trade restrictions on exports that might endanger its national security.

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in

Buyers that purchase dresses in Europe or calculators in Taiwan and have them shipped back to the United States for resale are engaging in

If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows and arrows, it has a(n)

During a stormy meeting of computer software firms, several company presidents said that without tariff cushions, many of them would go broke. They represent a new industry that needs protection until their firms grow to a size that will allow them to be competitive. Their comments are based on the

If Procter & Gamble and Reckitt & Colman, makers of Lysol, form a partnership to develop and distribute a disinfectant line of laundry detergent, the partnership would be a(n)

When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc. of the United States, Sony made a(n)

A favorable balance of payments means that

Which of the following best defines balance of trade?

What is the General Agreement on Tariffs and Trade (GATT)? What is its primary objective?

Which of the following scenarios would not be considered international business?

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing 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