Question 1

If Procter & Gamble, a U.S. leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a disinfectant line of ecologically friendly laundry detergent, the partnership would be a(n)

Accepted Answer

A)   corporation.
B)   joint venture.
C)   monopoly.
D)   licensing agreement.
E)   international alliance.F) B) and E)
G) All of the above

Question 2

NAFTA was built on the

Accepted Answer

A)   CAFTA model.
B)   EU model.
C)   Canadian Free Trade Agreement.
D)   model of GATT.
E)   Commonwealth of Independent States model.F) B) and D)
G) A) and C)

Question 3

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

Accepted Answer

A)   import quota.
B)   currency devaluation.
C)   prohibition.
D)   embargo.
E)   dumping restriction.F) B) and C)
G) A) and E)

Question 4

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) A) and B)
G) A) and C)

Question 5

What are multilateral development banks? What is their purpose? Who supports these banks?

Accepted Answer

Multilateral development banks are finan...

Question 6

"Devaluation increases the cost of foreign goods, while it decreases the cost of domestic goods of foreign firms." Explain with an example.

Accepted Answer

Devaluation refers to the deliberate dec...

Question 7

Which of the following countries is not part of CAFTA?

Accepted Answer

A)   Guatemala
B)   Honduras
C)   Nicaragua
D)   Mexico
E)   El SalvadorF) A) and D)
G) A) and C)

Question 8

Which of the following Asian countries has the leading economic growth?

Accepted Answer

A)   Japan
B)   Indonesia
C)   Korea
D)   Malaysia
E)   ChinaF) C) and D)
G) C) and E)

Question 9

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

Accepted Answer

A)   WTO.
B)   economic community.
C)   cartel.
D)   multinational.
E)   orderly marketing agreement.F) A) and D)
G) A) and B)

Question 10

A favorable balance of payments means that

Accepted Answer

A)   exports exceed imports.
B)   imports exceed exports.
C)   payments exceed trade.
D)   exports and other payments exceed imports and other receipts.
E)   total receipts exceed total payments.F) B) and E)
G) A) and D)

Question 11

The Association of Southeast Asian Nations

Accepted Answer

A)   was organized 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) C) and D)
G) B) and E)

Question 12

If the United States and Japan cannot settle their trade disputes on their own, they probably should settle them through the

Accepted Answer

A)   Tokyo Round.
B)   Kennedy Round.
C)   Uruguay Round.
D)   WTO.
E)   United Nations.F) None of the above
G) B) and D)

Question 13

How does a joint venture help a U.S. firm enter international markets?

Accepted Answer

A joint venture can help a U.S. firm ent...

Question 14

Why is balance of payments a much broader concept than balance of trade?

Accepted Answer

The balance of payments (BOP) is a much ...

Question 15

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is the new country interested in receiving?

Accepted Answer

A)   Free trade
B)   Importation/exportation
C)   The Tokyo Round
D)   Foreign-exchange control
E)   Most-favored-nation statusF) B) and D)
G) A) and B)

Question 16

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 directly 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 duty.F) A) and B)
G) D) and E)

Question 17

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 agreement.F) B) and C)
G) A) and B)

Question 18

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

Accepted Answer

A)   import duty.
B)   import deficit.
C)   trade embargo.
D)   import tariff.
E)   import quota.F) A) and D)
G) B) and D)

Question 19

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

Question 20

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries. Which statement about Chablis is true?

Accepted Answer

A)   It has a comparative advantage in wine production.
B)   It has a comparative advantage in timber and oil production.
C)   It has an absolute advantage in the production of wine.
D)   It has an absolute advantage in timber and oil production.
E)   It has no comparative or absolute advantages.F) A) and E)
G) C) and D)

Exam 3: A: Exploring Global Business

Suppose a newly formed African country wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is the new country interested in receiving?

Correct AnswerverifiedShow Answer

The Association of Southeast Asian Nations

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Which of the following Asian countries has the leading economic growth?

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

Correct AnswerverifiedShow Answer

"Devaluation increases the cost of foreign goods, while it decreases the cost of domestic goods of foreign firms." Explain with an example.

Correct AnswerAnswered by ExamLex AIDevaluation refers to the deliberate dec...View AnswerShow Answer

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

Correct AnswerverifiedShow Answer

What are multilateral development banks? What is their purpose? Who supports these banks?

Correct AnswerAnswered by ExamLex AIMultilateral development banks are finan...View AnswerShow Answer

A favorable balance of payments means that

Correct AnswerverifiedShow Answer

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

Correct AnswerverifiedShow Answer

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

Correct AnswerverifiedShow Answer

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries. Which statement about Chablis is true?

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

If Procter & Gamble, a U.S. leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a disinfectant line of ecologically friendly laundry detergent, the partnership would be a(n)

Correct AnswerverifiedShow Answer

If the United States and Japan cannot settle their trade disputes on their own, they probably should settle them through the

Correct AnswerverifiedShow Answer

Why is balance of payments a much broader concept than balance of trade?

Correct AnswerAnswered by ExamLex AIThe balance of payments (BOP) is a much ...View AnswerShow Answer

How does a joint venture help a U.S. firm enter international markets?

Correct AnswerAnswered by ExamLex AIA joint venture can help a U.S. firm ent...View AnswerShow Answer

NAFTA was built on the

Correct AnswerverifiedShow 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 directly correct the situation, they encourage Congress to impose a(n)

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

Which of the following countries is not part of CAFTA?

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
Devaluation refers to the deliberate dec...
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Answered by ExamLex AI
Multilateral development banks are finan...
View Answer

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
verified

Correct Answer
Answered by ExamLex AI
The balance of payments (BOP) is a much ...
View Answer

Correct Answer
Answered by ExamLex AI
A joint venture can help a U.S. firm ent...
View Answer

Correct Answer
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