Question 1

Mexico is experiencing balance-of-payments deficits and is seeking financial support.Mexico probably should seek assistance from

Accepted Answer

A)   the Export-Import Bank of the United States.
B)   a multilateral development bank.
C)   the Eximbank.
D)   the IMF.
E)   the World Bank.F) B) and E)
G) None of the above

Question 2

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country.Gillette expects a royalty from its partner in Bangladesh.Which arrangement will be the best choice for Gillette?

Accepted Answer

A)   export/import merchant agreement
B)   export/import agent agreement
C)   joint venture
D)   licensing
E)   multinational agreementF) B) and D)
G) A) and C)

Question 3

If South Africa were to trade diamonds to the United States 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 agreementF) A) and E)
G) B) and E)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

U.S.trade restrictions benefit only a few industries while harming many others.

Accepted Answer

A) True 
 B)False

Question 6

The United States does not sell fighter jets, such as F-16s, to Libya.The rationale for this restriction is most likely to

Accepted Answer

A)   protect national security.
B)   protect domestic jobs.
C)   protect the health of its citizens.
D)   retaliate for Libya's trade restrictions.
E)   protect domestic manufacturers.F) A) and B)
G) A) and C)

Question 7

By definition, every country has a comparative advantage in some product.

Accepted Answer

A) True 
 B)False

Question 8

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

What types of products did GATT focus on during the Kennedy Round?

Accepted Answer

A)   business services and textiles
B)   agricultural products and textiles
C)   industrial products and business services
D)   industrial and agricultural products
E)   textiles and intellectual property rightsF) A) and B)
G) All of the above

Question 11

American automakers are concerned about the availability of so many foreign cars to U.S.consumers, and that their chances to sell their own cars are limited.To correct the situation, they encourage Congress to impose a(n)  _____.

Accepted Answer

A)   export quota
B)   export duty
C)   import quota
D)   tariff
E)   import dutyF) D) and E)
G) All of the above

Question 12

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 tradingF) C) and D)
G) None of the above

Question 13

Who are the top two export partners of the United States?

Accepted Answer

A)   Japan and China
B)   Canada and the United Kingdom
C)   Mexico and Canada
D)   Mexico and China
E)   the United Kingdom and JapanF) A) and E)
G) B) and D)

Question 14

Purchasing products or materials in other nations and bringing them into one's own country is _____.

Accepted Answer

A)   trading
B)   balancing
C)   exporting
D)   importing
E)   dumpingF) None of the above
G) All of the above

Question 15

What are some advantages of licensing as a method of entering international business?

Accepted Answer

Licensing can be a beneficial method for...

Question 16

An international organization formed at the end of World War II by the United States and twenty-two other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the _____.

Accepted Answer

A)   Trade Expansion Act
B)   Kennedy Round
C)   GATT
D)   Tokyo Round
E)   Common MarketF) A) and B)
G) A) and C)

Question 17

What is a strategic alliance? What is its major advantage?

Accepted Answer

A strategic alliance is a formal agreeme...

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Accepted Answer

A) True 
 B)False

Question 20

What are the arguments against trade restrictions? Are these arguments valid? Explain.

Accepted Answer

There are several arguments against trad...

Exam 3: Exploring Global Business

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is a strategic alliance? What is its major advantage?

Correct AnswerAnswered by ExamLex AIA strategic alliance is a formal agreeme...View AnswerShow Answer

American automakers are concerned about the availability of so many foreign cars to U.S.consumers, and that their chances to sell their own cars are limited.To correct the situation, they encourage Congress to impose a(n) _____.

Correct AnswerverifiedShow Answer

Mexico is experiencing balance-of-payments deficits and is seeking financial support.Mexico probably should seek assistance from

Correct AnswerverifiedShow Answer

Decreases in trade barriers create more choices for consumers and new opportunities for job seekers.

Correct AnswerverifiedShow Answer

What are the arguments against trade restrictions? Are these arguments valid? Explain.

Correct AnswerAnswered by ExamLex AIThere are several arguments against trad...View AnswerShow Answer

An international organization formed at the end of World War II by the United States and twenty-two other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the _____.

Correct AnswerverifiedShow Answer

By definition, every country has a comparative advantage in some product.

Correct AnswerverifiedShow Answer

The World Trade Organization (WTO) was established by GATT to oversee the provisions of the Uruguay Round.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The United States does not sell fighter jets, such as F-16s, to Libya.The rationale for this restriction is most likely to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What types of products did GATT focus on during the Kennedy Round?

Correct AnswerverifiedShow Answer

U.S.trade restrictions benefit only a few industries while harming many others.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are some advantages of licensing as a method of entering international business?

Correct AnswerAnswered by ExamLex AILicensing can be a beneficial method for...View AnswerShow Answer

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country.Gillette expects a royalty from its partner in Bangladesh.Which arrangement will be the best choice for Gillette?

Correct AnswerverifiedShow Answer

Purchasing products or materials in other nations and bringing them into one's own country is _____.

Correct AnswerverifiedShow Answer

Who are the top two export partners of the United States?

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
A strategic alliance is a formal agreeme...
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Correct Answer
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Correct Answer
Answered by ExamLex AI
There are several arguments against trad...
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
Answered by ExamLex AI
Licensing can be a beneficial method for...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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