Question 1

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Accepted Answer

A)   a GATT.
B)   the European Union.
C)   a cartel.
D)   a multinational.
E)   an orderly marketing agreement.F) C) and D)
G) B) and E)

Question 2

Jeff Rose is an executive with a technology company in the United States, and he has been given the task of setting up a facility in China to serve the Chinese market. He is likely to encounter all of the following challenges except

Accepted Answer

A)   unemployment.
B)   political difficulties.
C)   a small market.
D)   inefficiently run businesses.
E)   underemployment.F) B) and D)
G) B) and C)

Question 3

What does the International Monetary Fund (IMF) do for nations with an unfavorable balance of trade?

Accepted Answer

The International Monetary Fund (IMF) is...

Question 4

When it built production lines in the United States, BMW engaged in what type of international expansion?

Accepted Answer

A)   Totally owned facilities
B)   Joint venture
C)   Strategic alliance
D)   Indirect investment
E)   ExportingF) A) and B)
G) D) and E)

Question 5

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Accepted Answer

A)   protective tariff.
B)   revenue tariff.
C)   dumping duty.
D)   import quota.
E)   excise tax.F) C) and E)
G) B) and E)

Question 6

Sangeeta purchases a Turkish rug from a local rug gallery in Dallas, Texas. Which of the following best describes this transaction?

Accepted Answer

A)   Sangeeta is a consumer, and the retailer imported the rug from Turkey.
B)   Sangeeta is a consumer, and the retailer exported the rug from Turkey.
C)   The original rug manufacturer from Turkey imported the materials to make the rug.
D)   Sangeeta is a direct importer in this situation because she is purchasing a product made in Turkey.
E)   Sangeeta is a direct exporter in this situation because the money she is spending will go to manufacturers in Turkey.F) None of the above
G) A) and E)

Question 7

When the United States levies a tax on coffee from Ecuador, this type of tax is a(n)

Accepted Answer

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

Question 8

The ____ gave President Kennedy the authority to negotiate reciprocal trade agreements that could reduce U.S. tariffs by as much as 50 percent.

Accepted Answer

A)   Foreign Corrupt Practices Act
B)   Trade Expansion Act
C)   Securities Exchange Act
D)   Federal Trade Commission Act
E)   Robinson-Patman ActF) A) and B)
G) A) and D)

Question 9

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Accepted Answer

A)   devalues
B)   increases
C)   balances
D)   decreases
E)   restrictsF) B) and E)
G) A) and B)

Question 10

What are nontariff barriers? How do nontariff barriers restrict international trade?

Accepted Answer

Nontariff barriers are restrictions on t...

Question 11

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Accepted Answer

The national balance of trade refers to ...

Question 12

The best method of learning from experience in international business is to

Accepted Answer

A)   enter into a licensing agreement.
B)   start exporting through an export merchant.
C)   start exporting through an export agent.
D)   invest directly in a foreign country.
E)   form a joint venture.F) A) and B)
G) A) and D)

Question 13

Which of the following represents the highest level of involvement in international business?

Accepted Answer

A)   Strategic alliance
B)   Totally owned facilities
C)   Multinational firm
D)   Joint ventures
E)   ExportingF) A) and B)
G) A) and C)

Question 14

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing a(n)

Accepted Answer

A)   free trade zone.
B)   GATT.
C)   trade deficit.
D)   balance of trade.
E)   import quota.F) C) and D)
G) All of the above

Question 15

The U.S. government created the ____ as a comprehensive source for U.S. companies seeking information on federal programs and activities that support U.S. exports.

Accepted Answer

A)   STAT-USA/Internet
B)   Trade Information Center
C)   National Export Initiative
D)   Small Business Administration
E)   Federal Trade CommissionF) A) and B)
G) D) and E)

Question 16

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Accepted Answer

A)   monetary export control.
B)   nontariff barrier.
C)   currency devaluation.
D)   currency control.
E)   foreign-exchange control.F) A) and C)
G) A) and D)

Question 17

Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

Accepted Answer

A)   Janet's bank receives a letter of credit from the importer's bank.
B)   it receives a letter of credit from Janet's bank.
C)   its bank receives a draft from the importer's bank.
D)   Janet receives a bill of lading.
E)   the ultimate consumer sends a bill of lading to the exporter's bank.F) B) and D)
G) C) and D)

Question 18

Which of the following is false concerning the International Monetary Fund?

Accepted Answer

A)   It has more than 150 member nations.
B)   It makes short-term loans to developing countries.
C)   Its loans are primarily to fund international trade.
D)   Its loans to developing countries are interest free.
E)   It is an international bank.F) A) and E)
G) A) and B)

Question 19

A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The company wants to maintain control over its sales while gaining experience in foreign markets. Which option would be best for this company?

Accepted Answer

A)   Licensing its products for sale in foreign countries
B)   Selling its products outright to an export/import merchant
C)   Establishing its own sales offices in foreign countries
D)   Developing totally owned facilities in a foreign market
E)   Hiring an export/import agent to assist with foreign salesF) D) and E)
G) A) and B)

Question 20

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Accepted Answer

A)   Licensing
B)   Exporting
C)   Joint venture
D)   Countertrade
E)   Strategic allianceF) A) and D)
G) B) and C)

Exam 3: A: Exploring Global Business

The U.S. government created the ____ as a comprehensive source for U.S. companies seeking information on federal programs and activities that support U.S. exports.

Correct Answer
verified

The ____ gave President Kennedy the authority to negotiate reciprocal trade agreements that could reduce U.S. tariffs by as much as 50 percent.

Correct Answer
verified

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Correct Answer
verified

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Correct Answer
verified

Correct Answer
verified

What does the International Monetary Fund (IMF) do for nations with an unfavorable balance of trade?

Correct Answer
Answered by ExamLex AI
The International Monetary Fund (IMF) is...
View Answer

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Correct Answer
verified

Which of the following represents the highest level of involvement in international business?

Correct Answer
verified

Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

Correct Answer
verified

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Correct Answer
Answered by ExamLex AI
The national balance of trade refers to ...
View Answer

The best method of learning from experience in international business is to

Correct Answer
verified

Sangeeta purchases a Turkish rug from a local rug gallery in Dallas, Texas. Which of the following best describes this transaction?

Correct Answer
verified

When it built production lines in the United States, BMW engaged in what type of international expansion?

Correct Answer
verified

Which of the following is false concerning the International Monetary Fund?

Correct Answer
verified

Jeff Rose is an executive with a technology company in the United States, and he has been given the task of setting up a facility in China to serve the Chinese market. He is likely to encounter all of the following challenges except

Correct Answer
verified

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Correct Answer
verified

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing a(n)

Correct Answer
verified

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Correct Answer
verified

When the United States levies a tax on coffee from Ecuador, this type of tax is a(n)

Correct Answer
verified

What are nontariff barriers? How do nontariff barriers restrict international trade?

Correct Answer
Answered by ExamLex AI
Nontariff barriers are restrictions on t...
View Answer

Exam 3: A: Exploring Global Business

The U.S. government created the ____ as a comprehensive source for U.S. companies seeking information on federal programs and activities that support U.S. exports.

Correct AnswerverifiedShow Answer

The ____ gave President Kennedy the authority to negotiate reciprocal trade agreements that could reduce U.S. tariffs by as much as 50 percent.

Correct AnswerverifiedShow Answer

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as

Correct AnswerverifiedShow Answer

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What does the International Monetary Fund (IMF) do for nations with an unfavorable balance of trade?

Correct AnswerAnswered by ExamLex AIThe International Monetary Fund (IMF) is...View AnswerShow Answer

A currency devaluation increases the cost of foreign goods and ____ the cost of domestic goods to foreign firms.

Correct AnswerverifiedShow Answer

Which of the following represents the highest level of involvement in international business?

Correct AnswerverifiedShow Answer

Janet hires an export merchant to help expand her business internationally. After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

Correct AnswerverifiedShow Answer

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Correct AnswerAnswered by ExamLex AIThe national balance of trade refers to ...View AnswerShow Answer

The best method of learning from experience in international business is to

Correct AnswerverifiedShow Answer

Sangeeta purchases a Turkish rug from a local rug gallery in Dallas, Texas. Which of the following best describes this transaction?

Correct AnswerverifiedShow Answer

When it built production lines in the United States, BMW engaged in what type of international expansion?

Correct AnswerverifiedShow Answer

Which of the following is false concerning the International Monetary Fund?

Correct AnswerverifiedShow Answer

Jeff Rose is an executive with a technology company in the United States, and he has been given the task of setting up a facility in China to serve the Chinese market. He is likely to encounter all of the following challenges except

Correct AnswerverifiedShow Answer

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Correct AnswerverifiedShow Answer

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of Japanese cars being imported by imposing a(n)

Correct AnswerverifiedShow Answer

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Correct AnswerverifiedShow Answer

When the United States levies a tax on coffee from Ecuador, this type of tax is a(n)

Correct AnswerverifiedShow Answer

What are nontariff barriers? How do nontariff barriers restrict international trade?

Correct AnswerAnswered by ExamLex AINontariff barriers are restrictions on t...View AnswerShow 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
Answered by ExamLex AI
The International Monetary Fund (IMF) is...
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Correct Answer
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Correct Answer
verified

Correct Answer
Answered by ExamLex AI
The national balance of trade refers to ...
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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
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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
Nontariff barriers are restrictions on t...
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