Question 1

A trading company

Accepted Answer

A)   is involved in manufacturing.
B)   owns assets related to manufacturing.
C)   does not take title to products.
D)   provides a link between buyers and sellers in different countries.
E)   does not perform activities necessary to move the products.F) None of the above
G) B) and E)

Question 2

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Accepted Answer

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

Question 3

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) A) and D)
G) A) and B)

Question 4

General Motors and Ford products produced in the United States can be found in many countries around the world. The United States is ____ these automobiles.

Accepted Answer

A)   tariffing
B)   importing
C)   exporting
D)   releasing
E)   dumpingF) A) and C)
G) A) and E)

Question 5

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

Accepted Answer

A)   dumping.
B)   tariffing.
C)   importing.
D)   exporting.
E)   deficit trading.F) A) and C)
G) B) and C)

Question 6

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Accepted Answer

A)   Multilateral development bank
B)   Inter-American Development Bank
C)   European Bank for Reconstruction and Development
D)   Small Business Administration
E)   Trade Promotion Coordinating CommitteeF) D) and E)
G) A) and E)

Question 7

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Accepted Answer

A)   Japan would have a comparative advantage in electronics manufacturing.
B)   Japan would have a positive balance of trade.
C)   The United States would have a comparative advantage in electronics.
D)   Japan would have an absolute advantage in electronics production.
E)   Japan would have a trade deficit with the United States.F) A) and B)
G) A) and C)

Question 8

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

Accepted Answer

A)   World Bank.
B)   Export-Import Bank of the World.
C)   African Development Bank.
D)   International Monetary Fund.
E)   Multilateral Development Bank of Central and South America.F) B) and D)
G) C) and E)

Question 9

The World Trade Organization was created by the

Accepted Answer

A)   Kennedy Round.
B)   United Nations.
C)   League of Nations.
D)   Tokyo Round.
E)   Uruguay Round.F) A) and E)
G) A) and C)

Question 10

Mexico is experiencing a balance of payment deficit 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 WTO.
D)   the IMF.
E)   GATT.F) A) and B)
G) A) and C)

Question 11

Countertrade is an international barter transaction in which

Accepted Answer

A)   goods and services are exchanged for different goods and services.
B)   one company sells goods and services under the counter.
C)   the buyers and sellers trade illegally.
D)   one company manufactures and the other company owns the assets.
E)   none of the above is correct.F) B) and E)
G) A) and D)

Question 12

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as

Accepted Answer

A)   exporting.
B)   licensing.
C)   direct investment.
D)   manufacturing in foreign countries.
E)   none of the above.F) C) and D)
G) D) and E)

Question 13

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

Accepted Answer

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

Question 14

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

Accepted Answer

A)   embargos.
B)   currency devaluations.
C)   import quotas.
D)   quality import restrictions.
E)   bureaucratic red tape.F) A) and D)
G) C) and D)

Question 15

Describe trading companies. What is an important function of trading companies?

Accepted Answer

Trading companies are businesses that sp...

Question 16

The Tokyo Round

Accepted Answer

A)   was completed in 1947.
B)   resulted in 50 percent tariff cuts.
C)   was implemented over a fifteen-year period.
D)   increased nontariff barriers.
E)   eased import quotas and unrealistic quality standards for imports.F) A) and B)
G) A) and E)

Question 17

Describe the major steps in entering international markets.

Accepted Answer

Entering international markets involves ...

Question 18

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

Question 19

What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.

Accepted Answer

When a country has an absolute advantage...

Question 20

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes to expand overseas. The company managers have been contemplating the best way to enter the foreign market. At first, the management felt it would be in the company's best interest to let a foreign company use its product and brand in exchange for a royalty. The managers recognized, however, that before the company decided on its foreign strategy it needed to think through all the steps required to enter an international market. As such, the managers believed they needed to consult with some type of agency to help their firm compete more effectively in the global marketplace.
After all the research was completed, the senior managers realized that they wanted to export their product. The managers decided that the transport carrier would notify them when the merchandise was shipped. This would avoid any confusion about lost shipments and ensure better communication with the receiving parties.
-Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

Accepted Answer

A)   GATT
B)   Trade Information Center
C)   World Trade Organization
D)   U.S. Export Assistance Centers
E)   U.S. and Foreign Commercial ServicesF) A) and D)
G) A) and C)

Exam 3: A: Exploring Global Business

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as

Correct Answer
verified

Correct Answer
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Describe trading companies. What is an important function of trading companies?

Correct Answer
Answered by ExamLex AI
Trading companies are businesses that sp...
View Answer

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Correct Answer
verified

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

Correct Answer
verified

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Correct Answer
verified

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

Correct Answer
verified

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

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

The Tokyo Round

Correct Answer
verified

What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.

Correct Answer
Answered by ExamLex AI
When a country has an absolute advantage...
View Answer

The World Trade Organization was created by the

Correct Answer
verified

General Motors and Ford products produced in the United States can be found in many countries around the world. The United States is ____ these automobiles.

Correct Answer
verified

Countertrade is an international barter transaction in which

Correct Answer
verified

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Correct Answer
verified

A trading company

Correct Answer
verified

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

Correct Answer
verified

Who are the members of NAFTA?

Correct Answer
verified

Describe the major steps in entering international markets.

Correct Answer
Answered by ExamLex AI
Entering international markets involves ...
View Answer

Mexico is experiencing a balance of payment deficit and is seeking financial support. Mexico probably should seek assistance from

Correct Answer
verified

Exam 3: A: Exploring Global Business

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe trading companies. What is an important function of trading companies?

Correct AnswerAnswered by ExamLex AITrading companies are businesses that sp...View AnswerShow Answer

The ___ was established in 1944 and offers low-interest loans and interest-free credit to developing countries?

Correct AnswerverifiedShow Answer

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

Correct AnswerverifiedShow Answer

If Japan were regarded as the best electronics manufacturer in the world, what would be true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications. These restrictions can best be classified as

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

The Tokyo Round

Correct AnswerverifiedShow Answer

What does it mean for a country to have an absolute advantage? Compare that to having a comparative advantage.

Correct AnswerAnswered by ExamLex AIWhen a country has an absolute advantage...View AnswerShow Answer

The World Trade Organization was created by the

Correct AnswerverifiedShow Answer

General Motors and Ford products produced in the United States can be found in many countries around the world. The United States is ____ these automobiles.

Correct AnswerverifiedShow Answer

Countertrade is an international barter transaction in which

Correct AnswerverifiedShow Answer

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Correct AnswerverifiedShow Answer

A trading company

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Who are the members of NAFTA?

Correct AnswerverifiedShow Answer

Describe the major steps in entering international markets.

Correct AnswerAnswered by ExamLex AIEntering international markets involves ...View AnswerShow Answer

Mexico is experiencing a balance of payment deficit and is seeking financial support. Mexico probably should seek assistance from

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Trading companies are businesses that sp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
When a country has an absolute advantage...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
Answered by ExamLex AI
Entering international markets involves ...
View Answer

Correct Answer
verified