Question 1

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Accepted Answer

A)   provide markets for its products
B)   have its name in the Wall Street Journal
C)   have its exports taxed
D)   be involved in international politics
E)   control the governments of other countriesF) A) and E)
G) A) and C)

Question 2

Which of the following statements is true about NAFTA?

Accepted Answer

A)   It is a free trade agreement between Canada and the United States.
B)   It was initiated by the United States.
C)   It was implemented during President Bill Clinton's term.
D)   It immediately eliminated tariffs among the United States, Mexico, and Canada.
E)   It was enacted in 2002 and encourages free trade.F) A) and B)
G) D) and E)

Question 3

The primary objective of the World Trade Organization is to

Accepted Answer

A)   help underdeveloped nations increase their standard of living.
B)   achieve world peace.
C)   remove barriers to trade worldwide.
D)   enforce worldwide political and trade regulations.
E)   promote the invention of new technologies.F) A) and D)
G) C) and D)

Question 4

Describe the world economic outlook for international trade.

Accepted Answer

The world economic outlook for internati...

Question 5

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Accepted Answer

A)   license
B)   letter of credit
C)   bill of lading
D)   draft
E)   voucherF) A) and D)
G) A) and C)

Question 6

Arguments for imposing trade restrictions include

Accepted Answer

A)   the misallocation of international resources.
B)   equalizing a nation's balance of payments.
C)   higher prices for consumers.
D)   restriction of consumers' choices.
E)   none of the above.F) A) and B)
G) B) and D)

Question 7

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) D) and E)
G) C) and D)

Question 8

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 organization that had the power to mediate this situation, the furniture company realized 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) A) and B)
G) C) and E) C

Question 9

Arguments for the government imposing restrictions on foreign trade include

Accepted Answer

A)   the loss of jobs in foreign countries.
B)   advancing technology will harm the country's economy.
C)   restriction of consumers' choices.
D)   protection of the health of its citizens.
E)   helping the foreign country become more competitive.F) C) and E)
G) A) and B)

Question 10

In 2011 U.S. exports as a percentage of GDP

Accepted Answer

A)   exceeded 25 percent.
B)   equated to approximately 5 percent.
C)   were at a record high.
D)   were at an all-time low.
E)   were at the approximate same rate as in 1970.F) All of the above
G) B) and D) C

Question 11

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

Accepted Answer

A)   trade deficit.
B)   favorable balance of trade.
C)   unfavorable exchange rate.
D)   unfavorable balance of trade.
E)   unfavorable balance of payments.F) D) and E)
G) B) and E)

Question 12

At present, the United States has an embargo against North Korea because

Accepted Answer

A)   North Korean products are too difficult to use.
B)   products from North Korea are in higher demand than American-made products.
C)   North Korea has an embargo on American products.
D)   North Korea will not adopt a capitalist government.
E)   the two countries have extremely poor political relations.F) D) and E)
G) A) and D)

Question 13

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.F) None of the above
G) A) and B)

Question 14

What is an economic community? Describe major international economic communities.

Accepted Answer

An economic community is a group of coun...

Question 15

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Accepted Answer

A)   exporting
B)   importing
C)   trading
D)   dumping
E)   taxingF) B) and E)
G) A) and E)

Question 16

What is meant by a multinational enterprise?

Accepted Answer

A multinational enterprise (MNE), also k...

Question 17

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Accepted Answer

A)   an overall favorable balance of trade.
B)   an overall unfavorable balance of trade.
C)   a favorable balance of trade with Jamaica.
D)   neither a favorable nor an unfavorable balance of trade with Jamaica.
E)   an unfavorable balance of trade with Jamaica.F) B) and E)
G) B) and C)

Question 18

What is the Doha Round? What was the focus of this round of negotiations?

Accepted Answer

The Doha Round refers to the latest roun...

Question 19

What is the euro? How many nations have adopted the new currency? Are there countries that have chosen not to participate?

Accepted Answer

The euro is the official currency of the...

Question 20

The payments portion of the balance of payments―that is, payments made by the United States―does not include

Accepted Answer

A)   exports.
B)   imports.
C)   military spending.
D)   foreign aid.
E)   investments.F) All of the above
G) C) and D) A

Exam 3: A: Exploring Global Business

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Correct Answer
verified

Which of the following statements is true about NAFTA?

Correct Answer
verified

The primary objective of the World Trade Organization is to

Correct Answer
verified

Describe the world economic outlook for international trade.

Correct Answer
Answered by ExamLex AI
The world economic outlook for internati...
View Answer

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Correct Answer
verified

Arguments for imposing trade restrictions include

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
C

Arguments for the government imposing restrictions on foreign trade include

Correct Answer
verified

In 2011 U.S. exports as a percentage of GDP

Correct Answer
verified
C

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

Correct Answer
verified

At present, the United States has an embargo against North Korea because

Correct Answer
verified

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

Correct Answer
verified

What is an economic community? Describe major international economic communities.

Correct Answer
Answered by ExamLex AI
An economic community is a group of coun...
View Answer

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Correct Answer
verified

What is meant by a multinational enterprise?

Correct Answer
Answered by ExamLex AI
A multinational enterprise (MNE), also k...
View Answer

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Correct Answer
verified

What is the Doha Round? What was the focus of this round of negotiations?

Correct Answer
Answered by ExamLex AI
The Doha Round refers to the latest roun...
View Answer

What is the euro? How many nations have adopted the new currency? Are there countries that have chosen not to participate?

Correct Answer
Answered by ExamLex AI
The euro is the official currency of the...
View Answer

The payments portion of the balance of payments―that is, payments made by the United States―does not include

Correct Answer
verified
A

Exam 3: A: Exploring Global Business

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Correct AnswerverifiedShow Answer

Which of the following statements is true about NAFTA?

Correct AnswerverifiedShow Answer

The primary objective of the World Trade Organization is to

Correct AnswerverifiedShow Answer

Describe the world economic outlook for international trade.

Correct AnswerAnswered by ExamLex AIThe world economic outlook for internati...View AnswerShow Answer

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Correct AnswerverifiedShow Answer

Arguments for imposing trade restrictions include

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

Correct AnswerverifiedC

Arguments for the government imposing restrictions on foreign trade include

Correct AnswerverifiedShow Answer

In 2011 U.S. exports as a percentage of GDP

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

At present, the United States has an embargo against North Korea because

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is an economic community? Describe major international economic communities.

Correct AnswerAnswered by ExamLex AIAn economic community is a group of coun...View AnswerShow Answer

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Correct AnswerverifiedShow Answer

What is meant by a multinational enterprise?

Correct AnswerAnswered by ExamLex AIA multinational enterprise (MNE), also k...View AnswerShow Answer

If Germany exports $100,000 of sauerkraut to Jamaica and purchases $100,000 of Blue Mountain coffee beans from Jamaica, Germany has

Correct AnswerverifiedShow Answer

What is the Doha Round? What was the focus of this round of negotiations?

Correct AnswerAnswered by ExamLex AIThe Doha Round refers to the latest roun...View AnswerShow Answer

What is the euro? How many nations have adopted the new currency? Are there countries that have chosen not to participate?

Correct AnswerAnswered by ExamLex AIThe euro is the official currency of the...View AnswerShow Answer

The payments portion of the balance of payments―that is, payments made by the United States―does not include

Correct AnswerverifiedA

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The world economic outlook for internati...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
An economic community is a group of coun...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
A multinational enterprise (MNE), also k...
View Answer

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The Doha Round refers to the latest roun...
View Answer

Correct Answer
Answered by ExamLex AI
The euro is the official currency of the...
View Answer

Correct Answer
verified
A