Question 1

An unfavorable 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) None of the above
G) A) and C)

Question 2

What is dumping? Why do domestic manufacturers obtain antidumping duty through the government?

Accepted Answer

Dumping is a term used in international ...

Question 3

When the United States levies a tax on textiles from India, this tax is a type of

Accepted Answer

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

Question 4

Which bank was established in 1990 to encourage reconstruction and development in the eastern and central European countries?

Accepted Answer

A)   The Ex-Im Bank
B)   The Bank of America
C)   The European Bank for Reconstruction and Development
D)   The Inter-American Development Bank
E)   The International Monetary FundF) B) and C)
G) A) and B)

Question 5

By definition, every country has a(n)  ____ advantage in some product.

Accepted Answer

A)   relative
B)   absolute
C)   comparative
D)   superior
E)   inferiorF) C) and E)
G) All of the above

Question 6

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Accepted Answer

A)   absolute advantage.
B)   comparative advantage.
C)   advantage based on efficient production.
D)   trade deficit.
E)   lot of diamonds.F) C) and D)
G) A) and D)

Question 7

Howard believes that there should be no trade restrictions for any reason. What effect would Howard say that trade restrictions have on prices?

Accepted Answer

A)   He would argue that by encouraging competition with trade restrictions, prices are likely to decrease.
B)   He would argue that restrictions would cause greater competition and therefore lead to higher prices.
C)   He would say that trade restrictions have no impact on prices, but they do restrict consumers' choices.
D)   He would say that restrictions reduce competition and therefore cause an increase in prices.
E)   He would argue that trade restrictions increase prices because they break up domestic monopolies.F) None of the above
G) A) and B)

Question 8

Why is foreign economic growth important to the export success of U.S. companies?

Accepted Answer

Foreign economic growth is important to ...

Question 9

Strategic alliances and ____ are very similar.

Accepted Answer

A)   trading companies
B)   most-favored-nation status
C)   licensing agreements
D)   joint ventures
E)   corporate mergersF) A) and E)
G) None of the above

Question 10

Who are the two largest contributors to the Asian Development Bank?

Accepted Answer

A)   China and Japan
B)   Japan and India
C)   The United States and Japan
D)   Russia and China
E)   China and IndonesiaF) B) and C)
G) C) and D)

Question 11

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

Accepted Answer

A)   Embargo
B)   Duty
C)   Dumping
D)   Export quota
E)   DroppingF) B) and C)
G) B) and E)

Question 12

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

Question 13

Which of the following best describes the Organization of Petroleum Exploring Countries?

Accepted Answer

A)   Collective bargaining unit
B)   Monopoly
C)   Trading company
D)   Joint venture
E)   Strategic allianceF) B) and C)
G) A) and C)

Question 14

Ford Motor Company, Mazda Motor Corporation, and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988. The new company's heating and cooling units may also be used in Ford's cars.

Accepted Answer

A)   sales branch
B)   joint venture
C)   subsidiary
D)   licensing agreement
E)   sole proprietorshipF) B) and D)
G) B) and C)

Question 15

Totally owned facilities overseas are an example of

Accepted Answer

A)   indirect investment.
B)   direct investment.
C)   roundabout investment.
D)   licensing.
E)   joint venture.F) A) and D)
G) All of the above

Question 16

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A)   They will be faced with the highest demand ever.
B)   They will become more competitive.
C)   They will be put out of business because they cannot compete with the prices.
D)   They will try to dump their toys in other countries.
E)   Their revenues will decrease, but their long-term success will not be affected.F) A) and C)
G) D) and E)

Question 17

The IDB and ADB are examples of

Accepted Answer

A)   countertrade.
B)   foreign banks.
C)   economic communities.
D)   world trade organizations.
E)   multilateral development banks.F) A) and B)
G) A) and E)

Question 18

The Ex-Im Bank finances the exports of American firms in all of the following ways except

Accepted Answer

A)   financing plant construction in overseas countries.
B)   extending and guaranteeing credit to overseas buyers of American goods and services.
C)   guaranteeing short-term financing for exports.
D)   cooperating with commercial banks.
E)   helping exporters offer credit to overseas customers.F) A) and D)
G) A) and C)

Question 19

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A)   embargo.
B)   stoppage.
C)   stay.
D)   closure.
E)   barricade.F) A) and E)
G) A) and D)

Question 20

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations. This would be an example of a(n)

Accepted Answer

A)   world trade organization.
B)   peace agreement.
C)   economic community.
D)   free trade agreement.
E)   global marketplace.F) B) and E)
G) A) and B)

Exam 3: A: Exploring Global Business

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

Correct AnswerverifiedShow Answer

An unfavorable trade balance is called a(n)

Correct AnswerverifiedShow Answer

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

Correct AnswerverifiedShow Answer

Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd., has a(n)

Correct AnswerverifiedShow Answer

Ford Motor Company, Mazda Motor Corporation, and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988. The new company's heating and cooling units may also be used in Ford's cars.

Correct AnswerverifiedShow Answer

What is dumping? Why do domestic manufacturers obtain antidumping duty through the government?

Correct AnswerAnswered by ExamLex AIDumping is a term used in international ...View AnswerShow Answer

Why is foreign economic growth important to the export success of U.S. companies?

Correct AnswerAnswered by ExamLex AIForeign economic growth is important to ...View AnswerShow Answer

Howard believes that there should be no trade restrictions for any reason. What effect would Howard say that trade restrictions have on prices?

Correct AnswerverifiedShow Answer

When the United States levies a tax on textiles from India, this tax is a type of

Correct AnswerverifiedShow Answer

The Ex-Im Bank finances the exports of American firms in all of the following ways except

Correct AnswerverifiedShow Answer

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

Correct AnswerverifiedShow Answer

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct AnswerverifiedShow Answer

Who are the two largest contributors to the Asian Development Bank?

Correct AnswerverifiedShow Answer

Which bank was established in 1990 to encourage reconstruction and development in the eastern and central European countries?

Correct AnswerverifiedShow Answer

The IDB and ADB are examples of

Correct AnswerverifiedShow Answer

Totally owned facilities overseas are an example of

Correct AnswerverifiedShow Answer

Which of the following best describes the Organization of Petroleum Exploring Countries?

Correct AnswerverifiedShow Answer

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations. This would be an example of a(n)

Correct AnswerverifiedShow Answer

Strategic alliances and ____ are very similar.

Correct AnswerverifiedShow Answer

By definition, every country has a(n) ____ advantage in some product.

Correct AnswerverifiedShow Answer

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Dumping is a term used in international ...
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Foreign economic growth is important to ...
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