Question 1

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 close.Landing Service has shipped many of its products internationally.In fact, 80 percent of its profits come from international sales.However, the Italian government has imposed a tax on imported furniture items to protect local companies.The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out.However, after Landing Service contacted the organisation that had the power to mediate this situation, the furniture company realised that the taxation it was subjected to was legal and that there was nothing it could do about it.
-Refer to Landing Service.What type of tax has the Brazilian government imposed on the company?

Accepted Answer

A)   Import duty
B)   Embargo
C)   Revenue tariff
D)   Protective tariff
E)   Nontariff barrierF) C) and E)
G) B) and C)

Question 2

Critics of NAFTA maintain that is has resulted in job losses and has done nothing to help the environment.

Accepted Answer

A) True 
 B)False

Question 3

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 Organisation meetings to encourage trade
E)   Political negotiations among many of the world's nationsF) D) and E)
G) B) and D)

Question 4

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 close.Landing Service has shipped many of its products internationally.In fact, 80 percent of its profits come from international sales.However, the Italian government has imposed a tax on imported furniture items to protect local companies.The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out.However, after Landing Service contacted the organisation that had the power to mediate this situation, the furniture company realised that the taxation it was subjected to was legal and that there was nothing it could do about it.
-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 barrierF) All of the above
G) A) and B)

Question 5

The Association of Southeast Asian Nations

Accepted Answer

A)   was organised in 1980.
B)   is known as the Free Market.
C)   did not eliminate any restrictions on trade.
D)   has agreed to create a free trade area.
E)   was dismantled in 1984.F) None of the above
G) C) and D)

Question 6

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Accepted Answer

A)   comparative advantage.
B)   trade deficit.
C)   balance of payments.
D)   negative output.
E)   positive balance of trade.F) D) and E)
G) C) and D)

Question 7

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 8

Who are the members of NAFTA?

Accepted Answer

A)   The United States, Canada, and Mexico
B)   Greenland, Iceland, and Canada
C)   Guatemala, Honduras, and Mexico
D)   The United States, Mexico, and Japan
E)   The United States, Canada, and the United KingdomF) C) and D)
G) None of the above

Question 9

When chain of organic coffee shops in Portland purchases coffee from Colombia, it

Accepted Answer

A)   is importing the coffee.
B)   is exporting the coffee.
C)   has an absolute advantage.
D)   is decreasing the balance-of-trade deficit.
E)   is making a big mistake.F) A) and E)
G) A) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace.He was further annoyed that he had to pay an artificially high price.When asked for his opinion, Alberto would probably argue

Accepted Answer

A)   against trade restrictions.
B)   for the trade deficit.
C)   for exports.
D)   for tourism.
E)   against international free trade associations.F) C) and E)
G) C) and D)

Question 12

Globalisation represents a huge opportunity for

Accepted Answer

A)   all countries-rich or poor.
B)   the UK.
C)   Japan.
D)   China.
E)   Asia.F) B) and E)
G) A) and D)

Question 13

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

Accepted Answer

A)   trade surplus.
B)   favourable balance of trade.
C)   favourable exchange role.
D)   unfavourable balance of trade.
E)   favourable balance of payments.F) C) and E)
G) B) and E)

Question 14

Which of the following federal governmental agencies provides domestic and overseas commercial officers, country experts, and industry experts?

Accepted Answer

A)   STAT-USA/Internet
B)   International Trade Administration
C)   Advocacy Centre
D)   Small Business Administration
E)   U.S.Department of CommerceF) B) and C)
G) C) and D)

Question 15

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Accepted Answer

A)   decreasing the trade deficit of the United States.
B)   contributing to the positive balance of payments of the United States.
C)   contributing to the negative balance of payments of the United States.
D)   buying imported goods.
E)   contributing to the GDP of the United States.F) A) and D)
G) D) and E)

Question 16

Due to worldwide trade restrictions, international business is declining in volume.

Accepted Answer

A) True 
 B)False

Question 17

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following represents the highest level of involvement in international business?

Accepted Answer

A)   Strategic alliance
B)   Totally owned facilities
C)   Multinational firm
D)   Joint ventures
E)   ExportingF) A) and E)
G) None of the above

Question 19

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 specialise 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 nationF) B) and E)
G) A) and C)

Question 20

A letter of credit is issued in favour of the importer.

Accepted Answer

A) True 
 B)False

Exam 3: Global Business

Correct Answer
verified

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace.He was further annoyed that he had to pay an artificially high price.When asked for his opinion, Alberto would probably argue

Correct Answer
verified

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

Correct Answer
verified

Critics of NAFTA maintain that is has resulted in job losses and has done nothing to help the environment.

Correct Answer
verified

Which of the following federal governmental agencies provides domestic and overseas commercial officers, country experts, and industry experts?

Correct Answer
verified

The Association of Southeast Asian Nations

Correct Answer
verified

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

Correct Answer
verified

When chain of organic coffee shops in Portland purchases coffee from Colombia, it

Correct Answer
verified

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

Correct Answer
verified

Which of the following represents the highest level of involvement in international business?

Correct Answer
verified

A letter of credit is issued in favour of the importer.

Correct Answer
verified

Globalisation represents a huge opportunity for

Correct Answer
verified

Who are the members of NAFTA?

Correct Answer
verified

Which of the following best defines balance of trade?

Correct Answer
verified

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Correct Answer
verified

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Correct Answer
verified

Due to worldwide trade restrictions, international business is declining in volume.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Correct Answer
verified

Exam 3: Global Business

Correct AnswerverifiedShow Answer

Alberto complained that it took some time to locate a distributor of an imported light bulb that he had to replace.He was further annoyed that he had to pay an artificially high price.When asked for his opinion, Alberto would probably argue

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Critics of NAFTA maintain that is has resulted in job losses and has done nothing to help the environment.

Correct AnswerverifiedShow Answer

Which of the following federal governmental agencies provides domestic and overseas commercial officers, country experts, and industry experts?

Correct AnswerverifiedShow Answer

The Association of Southeast Asian Nations

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When chain of organic coffee shops in Portland purchases coffee from Colombia, it

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following represents the highest level of involvement in international business?

Correct AnswerverifiedShow Answer

A letter of credit is issued in favour of the importer.

Correct AnswerverifiedShow Answer

Globalisation represents a huge opportunity for

Correct AnswerverifiedShow Answer

Who are the members of NAFTA?

Correct AnswerverifiedShow Answer

Which of the following best defines balance of trade?

Correct AnswerverifiedShow Answer

If the Republic of Trinidad and Tobago had total exports of $150 billion and total imports of $234 billion, the country had a

Correct AnswerverifiedShow Answer

A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.

Correct AnswerverifiedShow Answer

Due to worldwide trade restrictions, international business is declining in volume.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When Serena from the United States flies to Scotland on a Canadian airline, stays in an Edinburgh hotel, and buys many wool sweaters from Scotland to bring home, she is

Correct AnswerverifiedShow Answer

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