Question 1

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Accepted Answer

A) True 
 B)False

Question 2

An unfavourable trade balance is called a(n)

Accepted Answer

A)   balance of trade.
B)   trade deficit.
C)   currency devaluation.
D)   balance of payments.
E)   import balance.F) D) and E)
G) A) and C)

Question 3

When the UK levies a tax on coffee from Ecuador, this type of tax is a(n)

Accepted Answer

A)   export duty.
B)   barter.
C)   import.
D)   tariff.
E)   responsibility.F) A) and C)
G) B) and D)

Question 4

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

Accepted Answer

A)   equalising 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 correct.F) B) and C)
G) C) and D)

Question 5

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Accepted Answer

A)   a GATT.
B)   the European Union.
C)   a cartel.
D)   a multinational.
E)   an orderly marketing agreement.F) A) and B)
G) B) and C)

Question 6

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Which of the following functions is not performed by a trading company?

Accepted Answer

A)   Taking title to products
B)   Manufacturing products for foreign trading
C)   Linking buyers and sellers in different countries
D)   Buying products at the lowest price consistent with quality
E)   Performing activities necessary to move goods to the foreign countryF) A) and B)
G) D) and E)

Question 9

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

Accepted Answer

A)   The Export-Import Bank of the United States
B)   The Asian Development Bank
C)   The International Monetary Fund
D)   The Inter-American Development Bank
E)   The Multilateral Development BankF) A) and B)
G) A) and C)

Question 10

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida.These tourists are

Accepted Answer

A)   contributing to the United States' deficit balance of payments.
B)   helping increase the balance of payments for Japan.
C)   exporting products and services back to Japan.
D)   further decreasing the United States' balance of payments.
E)   helping the United States' balance of payments.F) D) and E)
G) A) and B)

Question 11

The TPP was created in 2011 to do all of the following except

Accepted Answer

A)   lower barriers to trade.
B)   market products jointly.
C)   increase exports.
D)   boost economies of member countries.
E)   lower investment barriers.F) B) and C)
G) All of the above

Question 12

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Accepted Answer

A) True 
 B)False

Question 13

Jeff Rose is an executive with a technology company in the UK and he has been given the task of setting up a facility in China to serve the Chinese market.He is likely to encounter all of the following challenges except

Accepted Answer

A)   unemployment.
B)   political difficulties.
C)   a small market.
D)   inefficiently run businesses.
E)   underemployment.F) A) and E)
G) B) and E)

Question 14

A(n)  ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Accepted Answer

A)   export-import merchant
B)   international bank
C)   joint venture
D)   export-import agent
E)   trading brokerF) A) and D)
G) C) and D)

Question 15

If South Africa were to trade diamonds to the UK 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.F) A) and E)
G) D) and E)

Question 16

One of the consequences of trade restrictions is misallocation of international resources.

Accepted Answer

A) True 
 B)False

Exam 3: Global Business

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

Correct Answer
verified

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

Correct Answer
verified

When the UK levies a tax on coffee from Ecuador, this type of tax is a(n)

Correct Answer
verified

The TPP was created in 2011 to do all of the following except

Correct Answer
verified

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

Correct Answer
verified

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Correct Answer
verified

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Correct Answer
verified

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida.These tourists are

Correct Answer
verified

Jeff Rose is an executive with a technology company in the UK and he has been given the task of setting up a facility in China to serve the Chinese market.He is likely to encounter all of the following challenges except

Correct Answer
verified

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Correct Answer
verified

An unfavourable trade balance is called a(n)

Correct Answer
verified

One of the consequences of trade restrictions is misallocation of international resources.

Correct Answer
verified

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Correct Answer
verified

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

Correct Answer
verified

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Correct Answer
verified

Which of the following functions is not performed by a trading company?

Correct Answer
verified

Exam 3: Global Business

Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral system of payments?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the UK levies a tax on coffee from Ecuador, this type of tax is a(n)

Correct AnswerverifiedShow Answer

The TPP was created in 2011 to do all of the following except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A(n) ____ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries.

Correct AnswerverifiedShow Answer

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Correct AnswerverifiedShow Answer

Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida.These tourists are

Correct AnswerverifiedShow Answer

Jeff Rose is an executive with a technology company in the UK and he has been given the task of setting up a facility in China to serve the Chinese market.He is likely to encounter all of the following challenges except

Correct AnswerverifiedShow Answer

A firm's direct investment in international business involves building a new plant or buying an existing plant in a foreign country to produce its own products, or it may involve buying an existing firm in a foreign country.

Correct AnswerverifiedShow Answer

An unfavourable trade balance is called a(n)

Correct AnswerverifiedShow Answer

One of the consequences of trade restrictions is misallocation of international resources.

Correct AnswerverifiedShow Answer

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Correct AnswerverifiedShow Answer

Which of the following functions is not performed by a trading company?

Correct AnswerverifiedShow Answer

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