Question 1

The Export-Import Bank of the United States

Accepted Answer

A)  is owned and operated by Fortune 500 companies.
B)  is an independent agency of the U.S.government.
C)  aids foreign nations experiencing balance-of-payments problems.
D)  guarantees credit to American buyers of foreign goods.
E)  closed its operations in 1991.F) D) and E)
G) A) and B)

Question 2

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

Question 3

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 E)
G) None of the above

Question 4

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

Accepted Answer

A) True 
 B)False

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

Question 6

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

Question 7

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 8

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 9

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country. These are examples of

Accepted Answer

A)  members of the Dow Jones Industrial Average.
B)  global trading companies.
C)  internationally owned facilities.
D)  multinational enterprises.
E)  foreign-domestic corporations.F) A) and D)
G) None of the above

Question 10

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

Accepted Answer

A)  The International Monetary Fund
B)  The Inter-American Development Bank
C)  The United States
D)  The Federal Reserve
E)  The Development Bank for Emerging EconomiesF) A) and E)
G) A) and D)

Question 11

What is an embargo? When might it be used?

Accepted Answer

An embargo is a complete halt to trading...

Question 12

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Accepted Answer

A)  shows that to foreigner purchasers, the price of the china is the same before and after the devaluation.
B)  makes the china less attractive to foreigner purchasers.
C)  makes the china more attractive to foreign purchasers.
D)  is irrelevant to foreign purchasers.
E)  proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way, they could get even more for their dollars.F) None of the above
G) A) and D)

Question 13

What are some of the major sources of export assistance from the federal government?

Accepted Answer

Answers will vary. Some of the U.S. gove...

Question 14

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 B)
G) B) and D)

Question 15

A tax that is levied on a foreign product entering a country is called an export tariff.

Accepted Answer

A) True 
 B)False

Question 16

​While the global economy continued to grow robustly until 2007, economic performance ______.

Accepted Answer

A)  ​was sluggish then stopped in 2009.
B)  ​was advancing at an equal pace.
C)  ​outstripped the global economy.
D)  ​continued gradually.E) A) and C)
F) None of the above

Question 17

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

Question 18

Forming a joint venture with an existing foreign company offers all of the following advantages except

Accepted Answer

A)  joining an established firm.
B)  requiring less commitment from all parties involved in the joint venture.
C)  providing immediate marketing knowledge.
D)  providing reduced risk.
E)  providing control over product attributes.F) B) and C)
G) C) and D)

Question 19

If a country imports more than it exports, its balance of trade is said to be favorable.

Accepted Answer

A) True 
 B)False

Question 20

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 clos
-Refer to Landing Service. The Landing Service does mostly

Accepted Answer

A)  mediating.
B)  domestic sales.
C)  importing.
D)  exporting.
E)  currency devaluation.F) C) and D)
G) C) and E)

Exam 3: Exploring Global Business

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Correct Answer
verified

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country. These are examples of

Correct Answer
verified

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Correct Answer
verified

Totally owned facilities overseas are an example of

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

What is an embargo? When might it be used?

Correct Answer
verified
An embargo is a complete halt to trading...
View Answer

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

Correct Answer
verified

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

Correct Answer
verified

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

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

A tax that is levied on a foreign product entering a country is called an export tariff.

Correct Answer
verified

Forming a joint venture with an existing foreign company offers all of the following advantages except

Correct Answer
verified

While the global economy continued to grow robustly until 2007, economic performance ______.

Correct Answer
verified

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct Answer
verified

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

Correct Answer
verified

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

Correct Answer
verified

If a country imports more than it exports, its balance of trade is said to be favorable.

Correct Answer
verified

The Export-Import Bank of the United States

Correct Answer
verified

What are some of the major sources of export assistance from the federal government?

Correct Answer
verified
Answers will vary. Some of the U.S. gove...
View Answer

Correct Answer
verified

Exam 3: Exploring Global Business

Suppose a set of English bone china costing £1,000 costs $3,000 in the United States. After devaluation, the set of china costs $1,000. This change

Correct AnswerverifiedShow Answer

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country. These are examples of

Correct AnswerverifiedShow Answer

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Correct AnswerverifiedShow Answer

Totally owned facilities overseas are an example of

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

What is an embargo? When might it be used?

Correct AnswerverifiedAn embargo is a complete halt to trading...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Strategic alliances are partnerships formed to create competitive advantage on a worldwide basis.

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

A tax that is levied on a foreign product entering a country is called an export tariff.

Correct AnswerverifiedShow Answer

Forming a joint venture with an existing foreign company offers all of the following advantages except

Correct AnswerverifiedShow Answer

​While the global economy continued to grow robustly until 2007, economic performance ______.

Correct AnswerverifiedShow Answer

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct AnswerverifiedShow Answer

China is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should China seek assistance?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a country imports more than it exports, its balance of trade is said to be favorable.

Correct AnswerverifiedShow Answer

The Export-Import Bank of the United States

Correct AnswerverifiedShow Answer

What are some of the major sources of export assistance from the federal government?

Correct AnswerverifiedAnswers will vary. Some of the U.S. gove...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An embargo is a complete halt to trading...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

While the global economy continued to grow robustly until 2007, economic performance ______.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary. Some of the U.S. gove...
View Answer

Correct Answer
verified