Question 1

When foreign currencies can be traded for more dollars, U.S. products and companies are more expensive for the foreign customer and exports decrease.

Accepted Answer

A) True 
 B)False  False

Question 2

After World War II, the United States provided assistance to other countries to develop their markets and improve global trade though it gained no returns on these initiatives.

Accepted Answer

A) True 
 B)False  False

Question 3

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following is a basic criticism of global financial institutions?

Accepted Answer

A)   They failed to focus on the aim of reducing inequalities between the rich and the poor countries.
B)   They failed to help the Asian countries substantially when they underwent a major financial crisis in the 1990s.
C)   They failed to respect the autonomy of member nations by deeming any bilateral agreements between members as illegal if made without their approval.
D)   They failed to foresee and counter the unintended effects of globalization like pollution, exploitation, and cultural extinction.
E)   They failed to suppress the terrorists who were responsible for the attack in London that coincided with the G8 summit.

Question 5

Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?

Accepted Answer

A)   The creation of the Soviet Union and the higher tariffs on imports
B)   Growing jingoistic nationalism and a negative population growth rate in major international markets
C)   Resistance to direct investment and increasing competition in export markets
D)   Increasing Chinese domination in the manufacturing sector and the falling dollar in global markets
E)   The decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market

Question 6

Which of the following are becoming a popular way to circumvent WTO guidelines and impose new duties?

Accepted Answer

A)   Antidumping duties
B)   Basic excise duties
C)   Special excise duties
D)   Production taxes
E)   Manufacturing taxes

Question 7

In the context of monetary barriers, blockage is ideally accomplished when:

Accepted Answer

A)   a country refuses to allow an importer to exchange its national currency for the country's currency.
B)   two countries enter into a voluntary agreement to determine the value of their currencies.
C)   a country applies a specific unit or dollar limit to a particular type of good.
D)   money dealers limit the rate at which foreign currencies are exchanged.
E)   the government of a country imposes a mandatory tax on goods entering at its borders.

Question 8

The United States and other countries require some products (automobiles in particular) to contain a percentage of "local content" to gain admission to their markets. This is an example of the stringent usage of _____ to restrict trade.

Accepted Answer

A)   exchange permits
B)   embargoes
C)   blocked currencies
D)   standards
E)   antidumping penalties

Question 9

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor.

Accepted Answer

A)   Eisenhower Plan
B)   Marshall Plan
C)   Bradley Plan
D)   Roosevelt Plan
E)   Kennedy Plan

Question 10

Which of the following strategies was employed by the United States to regain its lost market share for capital goods by the late 1990s?

Accepted Answer

A)   Funding the communist nations
B)   Restructuring its industries to be more lean and mean
C)   Decreasing its exports and increasing its imports
D)   Raising average U.S. tariffs on more than 20,000 imported goods by 60%
E)   Provoking increased protectionism from other countries

Question 11

Why must the balance-of-payments record always be in balance? What does a balanced record signify?

Accepted Answer

The answer of Why must the balance-of-payments record always be...

Question 12

Which of the following is a defining characteristic of a balance-of-payments statement?

Accepted Answer

A)   It is a record of the domestic transactions between the government of a country and the private companies in that country.
B)   It records all financial transactions between the residents of a country and those of the rest of the world.
C)   It records the trade policies of the member nations of the WTO.
D)   It is an annual record of the profitable foreign transactions made by a particular country.
E)   It is a financial statement in which the credits must exceed the debits.

Question 13

The World Intellectual Property Organization was formed with the primary objective of overcoming inadequate monetary reserves and dealing with unstable currencies which were particularly vexing problems in global trade.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?

Accepted Answer

A)   Formation of the United Nations Development Program
B)   Creation of the United Nations
C)   Establishment of the World Trade Organization
D)   Signing of the Montreal Protocol
E)   Negotiation of the General Agreement on Tariffs and Trade

Question 15

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm?

Accepted Answer

A)   The market access section
B)   The export expansion section
C)   The import relief section
D)   The foreign exchange regulation section
E)   The trade deficit section

Question 16

Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.

Accepted Answer

A) True 
 B)False

Question 17

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.

Accepted Answer

A)   boycott
B)   asterisk bill
C)   tariff
D)   quota
E)   writ

Question 18

Which of the following acronyms refers to the international forum that was created for member countries to engage in the negotiation of tariffs and other barriers to trade?

Accepted Answer

A)   UNHCR
B)   GATT
C)   WMO
D)   NPT
E)   UNDP

Question 19

The fundamental difference between quotas and import licenses as a means of controlling imports is that:

Accepted Answer

A)   import licenses have greater flexibility over quotas.
B)   quotas impose specific limitations on trade, and import licenses take care of standards.
C)   quotas are imposed on export goods, and import licenses are imposed on import goods.
D)   for quotas, the exporting country sets the limits, but licenses are issued by the importing country.
E)   unlike licenses, quotas limit quantities on a case-by-case basis.

Question 20

Briefly describe the three accounts of a balance-of-payments statement.

Accepted Answer

The answer of Briefly describe the three accounts of a...

Exam 2: The Dynamic Environment of International Trade

When foreign currencies can be traded for more dollars, U.S. products and companies are more expensive for the foreign customer and exports decrease.

After World War II, the United States provided assistance to other countries to develop their markets and improve global trade though it gained no returns on these initiatives.

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.

Which of the following is a basic criticism of global financial institutions?

Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?

Which of the following are becoming a popular way to circumvent WTO guidelines and impose new duties?

In the context of monetary barriers, blockage is ideally accomplished when:

The United States and other countries require some products (automobiles in particular) to contain a percentage of "local content" to gain admission to their markets. This is an example of the stringent usage of _____ to restrict trade.

After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor.

Which of the following strategies was employed by the United States to regain its lost market share for capital goods by the late 1990s?

Why must the balance-of-payments record always be in balance? What does a balanced record signify?

Which of the following is a defining characteristic of a balance-of-payments statement?

The World Intellectual Property Organization was formed with the primary objective of overcoming inadequate monetary reserves and dealing with unstable currencies which were particularly vexing problems in global trade.

Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm?

Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.

A tax imposed by a government on goods entering at its borders is most accurately termed as a(n) _____.

Which of the following acronyms refers to the international forum that was created for member countries to engage in the negotiation of tariffs and other barriers to trade?

The fundamental difference between quotas and import licenses as a means of controlling imports is that:

Briefly describe the three accounts of a balance-of-payments statement.