Question 1

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

Accepted Answer

A) license 
B) letter of credit 
C) bill of lading 
D) draft 
E) voucher 
A) license 
B) letter of credit 
C) bill of lading 
D) draft 
E) voucher

Question 2

How has international trade changed since the end of World War II?

Accepted Answer

A) Trade across national borders has decreased since its peak during the early to mid-1900s. 
B) International trade has increased steadily since this period of time. 
C) The amount of international trading has remained relatively stable since this time. 
D) International trade has become completely unrestricted. 
E) International trading has become much more heavily regulated and restricted by all countries. 
A) Trade across national borders has decreased since its peak during the early to mid-1900s. 
B) International trade has increased steadily since this period of time. 
C) The amount of international trading has remained relatively stable since this time. 
D) International trade has become completely unrestricted. 
E) International trading has become much more heavily regulated and restricted by all countries.

Question 3

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

Accepted Answer

A) currency devaluation. 
B) foreign-exchange control. 
C) negative foreign exchange. 
D) trade embargo. 
E) quota. 
A) currency devaluation. 
B) foreign-exchange control. 
C) negative foreign exchange. 
D) trade embargo. 
E) quota.

Question 4

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Which of the following alternatives could have worked as a link between the managers at Lynn Bernerd, Inc. and the buyer from a different country?

Accepted Answer

A) International barter 
B) Counter trade 
C) Trading company 
D) Comparative trader 
E) Foreign-exchange control 
A) International barter 
B) Counter trade 
C) Trading company 
D) Comparative trader 
E) Foreign-exchange control

Question 5

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Accepted Answer

A) strategic alliance. 
B) licensing agreement. 
C) exporting agency. 
D) trading company. 
E) countertrade. 
A) strategic alliance. 
B) licensing agreement. 
C) exporting agency. 
D) trading company. 
E) countertrade.

Question 6

General Motors and Ford products produced in the United States are found around the world. The United States is ____ these automobiles.

Accepted Answer

A) tariffing 
B) importing 
C) exporting 
D) releasing 
E) dumping 
A) tariffing 
B) importing 
C) exporting 
D) releasing 
E) dumping

Question 7

How was the World Trade Organization (WTO) created? Why was it established?

Accepted Answer

The World Trade Organization (WTO) was c

Question 8

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Accepted Answer

A) True 
 B)False

Question 9

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Accepted Answer

A) True 
 B)False

Question 10

The Tokyo Round

Accepted Answer

A) was completed in 1947. 
B) resulted in 50 percent tariff cuts. 
C) was implemented over a fifteen-year period. 
D) increased nontariff barriers. 
E) eased import quotas and unrealistic quality standards for imports. 
A) was completed in 1947. 
B) resulted in 50 percent tariff cuts. 
C) was implemented over a fifteen-year period. 
D) increased nontariff barriers. 
E) eased import quotas and unrealistic quality standards for imports.

Question 11

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Accepted Answer

A) trading company 
B) strategic alliance 
C) licensing company 
D) countertrade agreement 
E) joint venture 
A) trading company 
B) strategic alliance 
C) licensing company 
D) countertrade agreement 
E) joint venture

Question 12

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Accepted Answer

A) World Bank 
B) Inter-American Development Bank 
C) European Bank for Reconstruction and Development 
D) Small Business Administration 
E) Trade Promotion Coordinating Committee 
A) World Bank 
B) Inter-American Development Bank 
C) European Bank for Reconstruction and Development 
D) Small Business Administration 
E) Trade Promotion Coordinating Committee

Question 13

Despite trade restrictions, international business is

Accepted Answer

A) moving slowly. 
B) growing. 
C) slowing down. 
D) struggling for survival. 
E) decreasing. 
A) moving slowly. 
B) growing. 
C) slowing down. 
D) struggling for survival. 
E) decreasing.

Question 14

The World Trade Organization was created by the

Accepted Answer

A) Kennedy Round. 
B) United Nations. 
C) League of Nations. 
D) Tokyo Round. 
E) Uruguay Round. 
A) Kennedy Round. 
B) United Nations. 
C) League of Nations. 
D) Tokyo Round. 
E) Uruguay Round.

Question 15

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

Accepted Answer

A) True 
 B)False

Question 16

When a country imports more than it exports, it has a(n)

Accepted Answer

A) trade surplus. 
B) favorable balance of trade. 
C) favorable exchange role. 
D) unfavorable balance of trade. 
E) favorable balance of payments. 
A) trade surplus. 
B) favorable balance of trade. 
C) favorable exchange role. 
D) unfavorable balance of trade. 
E) favorable balance of payments.

Question 17

Cultural barriers can impede acceptance of products in foreign countries.

Accepted Answer

A) True 
 B)False

Question 18

The Organization of Petroleum Exporting Countries (OPEC)

Accepted Answer

A) was founded in 1975. 
B) was conceived as a collective-bargaining unit. 
C) was organized in response to the formation of the European Community. 
D) was effective in increasing the supply of oil. 
E) has as its objective completely free trade among its members. 
A) was founded in 1975. 
B) was conceived as a collective-bargaining unit. 
C) was organized in response to the formation of the European Community. 
D) was effective in increasing the supply of oil. 
E) has as its objective completely free trade among its members.

Question 19

Suppose the country of Gaditia wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is Gaditia interested in receiving?

Accepted Answer

A) Free trade 
B) Importation/exportation 
C) The Tokyo Round 
D) Foreign-exchange control 
E) Most-favored-nation status 
A) Free trade 
B) Importation/exportation 
C) The Tokyo Round 
D) Foreign-exchange control 
E) Most-favored-nation status

Question 20

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

Accepted Answer

A) a joint venture. 
B) a licensing agreement. 
C) totally owned facilities. 
D) exporting. 
E) sales offices. 
A) a joint venture. 
B) a licensing agreement. 
C) totally owned facilities. 
D) exporting. 
E) sales offices.

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

How has international trade changed since the end of World War II?

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which of the following alternatives could have worked as a link between the managers at Lynn Bernerd, Inc. and the buyer from a different country?

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

General Motors and Ford products produced in the United States are found around the world. The United States is ____ these automobiles.

How was the World Trade Organization (WTO) created? Why was it established?

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

The Tokyo Round

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Despite trade restrictions, international business is

The World Trade Organization was created by the

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

When a country imports more than it exports, it has a(n)

Cultural barriers can impede acceptance of products in foreign countries.

The Organization of Petroleum Exporting Countries (OPEC)

Suppose the country of Gaditia wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is Gaditia interested in receiving?

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

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

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

How has international trade changed since the end of World War II?

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which of the following alternatives could have worked as a link between the managers at Lynn Bernerd, Inc. and the buyer from a different country?

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

General Motors and Ford products produced in the United States are found around the world. The United States is ____ these automobiles.

How was the World Trade Organization (WTO) created? Why was it established?

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

The Tokyo Round

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Despite trade restrictions, international business is

The World Trade Organization was created by the

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

When a country imports more than it exports, it has a(n)

Cultural barriers can impede acceptance of products in foreign countries.

The Organization of Petroleum Exporting Countries (OPEC)

Suppose the country of Gaditia wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is Gaditia interested in receiving?

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

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