Question 1

The Organization of Petroleum Exporting Countries (OPEC)

Accepted Answer

A)  was founded in 1975.
B)  was conceived as a collective-bargaining unit.
C)  was organized in response to the formation of the European Community.
D)  was effective in increasing the supply of oil.
E)  has as its objective completely free trade among its members.F) B) and E)
G) D) and E)

Question 2

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

Question 3

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

Accepted Answer

A)  license
B)  letter of credit
C)  bill of lading
D)  draft
E)  voucherF) D) and E)
G) A) and C)

Question 4

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Accepted Answer

A)  strategic alliance.
B)  licensing agreement.
C)  exporting agency.
D)  trading company.
E)  countertrade.F) A) and B)
G) A) and C)

Question 5

Despite trade restrictions, international business is

Accepted Answer

A)  moving slowly.
B)  growing.
C)  slowing down.
D)  struggling for survival.
E)  decreasing.F) All of the above
G) A) and B)

Question 6

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

Accepted Answer

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

Question 7

General Motors and Ford products produced in the United States are found around the world. The United States is ____ these automobiles.

Accepted Answer

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

Question 8

Cultural barriers can impede acceptance of products in foreign countries.

Accepted Answer

A) True 
 B)False

Question 9

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Accepted Answer

A) True 
 B)False

Question 10

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 D)
G) All of the above

Question 11

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

Accepted Answer

A)  a joint venture.
B)  a licensing agreement.
C)  totally owned facilities.
D)  exporting.
E)  sales offices.F) None of the above
G) B) and E)

Question 12

Suppose the country of Gaditia wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is Gaditia interested in receiving?

Accepted Answer

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

Question 13

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Accepted Answer

A) True 
 B)False

Question 14

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

Accepted Answer

A)  currency devaluation.
B)  foreign-exchange control.
C)  negative foreign exchange.
D)  trade embargo.
E)  quota.F) None of the above
G) A) and B)

Question 15

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 D)
G) A) and E)

Question 16

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Which of the following alternatives could have worked as a link between the managers at Lynn Bernerd, Inc. and the buyer from a different country?

Accepted Answer

A)  International barter
B)  Counter trade
C)  Trading company
D)  Comparative trader
E)  Foreign-exchange controlF) B) and E)
G) A) and B)

Question 17

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

Accepted Answer

A) True 
 B)False

Question 18

How has international trade changed since the end of World War II?

Accepted Answer

A)  Trade across national borders has decreased since its peak during the early to mid-1900s.
B)  International trade has increased steadily since this period of time.
C)  The amount of international trading has remained relatively stable since this time.
D)  International trade has become completely unrestricted.
E)  International trading has become much more heavily regulated and restricted by all countries.F) A) and B)
G) C) and D)

Question 19

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Accepted Answer

A)  trading company
B)  strategic alliance
C)  licensing company
D)  countertrade agreement
E)  joint ventureF) A) and B)
G) B) and D)

Question 20

How was the World Trade Organization (WTO) created? Why was it established?

Accepted Answer

The World Trade Organization (WTO) was c...

Exam 3: Exploring Global Business

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Correct AnswerverifiedShow Answer

The World Trade Organization was created by the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.

Correct AnswerverifiedShow Answer

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Correct AnswerverifiedShow Answer

The Organization of Petroleum Exporting Countries (OPEC)

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General Motors and Ford products produced in the United States are found around the world. The United States is ____ these automobiles.

Correct AnswerverifiedShow Answer

How was the World Trade Organization (WTO) created? Why was it established?

Correct AnswerverifiedThe World Trade Organization (WTO) was c...View AnswerShow Answer

Suppose the country of Gaditia wanted to join GATT and thus be treated the same as other GATT members. What GATT principle is Gaditia interested in receiving?

Correct AnswerverifiedShow Answer

Despite trade restrictions, international business is

Correct AnswerverifiedShow Answer

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Correct AnswerverifiedShow Answer

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which of the following alternatives could have worked as a link between the managers at Lynn Bernerd, Inc. and the buyer from a different country?

Correct AnswerverifiedShow Answer

ABC Company wants to be prepared for the ASEAN free trade area. The company plans to develop its own production and marketing facilities in one or more ASEAN countries. The best choice for ABC Company is

Correct AnswerverifiedShow Answer

When an Indian importing firm wants to import U.S.-made products, it must first secure permission and dollars from the Reserve Bank of India. This type of restriction is known as a

Correct AnswerverifiedShow Answer

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

Correct AnswerverifiedShow Answer

Cultural barriers can impede acceptance of products in foreign countries.

Correct AnswerverifiedShow Answer

How has international trade changed since the end of World War II?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The International Monetary Fund (IMF) makes short-term loans to developing countries experiencing balance-of-payment deficits.

Correct AnswerverifiedShow Answer

The Tokyo Round

Correct AnswerverifiedShow Answer

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The World Trade Organization (WTO) was c...
View Answer

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