Question 1

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Accepted Answer

A) True 
 B)False

Question 2

Suppose the United States requires products sold in the United States be at least 51 percent made in the United States. Which of the following denotes this type of policy?

Accepted Answer

A)  Business practice law 
B)  Deregulation law 
C)  Antidumping laws 
D)  Strategic alliance 
E)  Local content law 
A)  Business practice law 
B)  Deregulation law 
C)  Antidumping laws 
D)  Strategic alliance 
E)  Local content law

Question 3

Which of the following refers to associations of producers that control supply and prices?

Accepted Answer

A)  Independent agencies 
B)  Cartels 
C)  Trade alliances 
D)  Multinational firms 
E)  Trade monopolies 
A)  Independent agencies 
B)  Cartels 
C)  Trade alliances 
D)  Multinational firms 
E)  Trade monopolies

Question 4

What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region?

Accepted Answer

A)  SEATO 
B)  ASEAN 
C)  CENTO 
D)  OAS 
E)  WTO 
A)  SEATO 
B)  ASEAN 
C)  CENTO 
D)  OAS 
E)  WTO

Question 5

Ford, an American car company, purchased Volvo, which is based in Sweden. What is this an example of?

Accepted Answer

A)  A multinational firm 
B)  An independent agency 
C)  A licensing arrangement 
D)  A foreign direct investment 
E)  A strategic alliance 
A)  A multinational firm 
B)  An independent agency 
C)  A licensing arrangement 
D)  A foreign direct investment 
E)  A strategic alliance

Question 6

In which international organization structure does a firm have greatest control over foreign activities?

Accepted Answer

A)  Exporting arrangements 
B)  Strategic alliances 
C)  Importing arrangements 
D)  Licensing arrangements 
E)  Independent agents 
A)  Exporting arrangements 
B)  Strategic alliances 
C)  Importing arrangements 
D)  Licensing arrangements 
E)  Independent agents

Question 7

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Accepted Answer

A) True 
 B)False

Question 8

A comparative advantage exists when a country can produce something more cheaply and/or of higher quality than any other country.

Accepted Answer

A) True 
 B)False

Question 9

Even free market economies often establish some system of quotas and/or tariffs.

Accepted Answer

A) True 
 B)False

Question 10

The single largest trading partner of the United States is China.

Accepted Answer

A) True 
 B)False

Question 11

What is the advantage for a business who uses offshoring in their manufacturing process?

Accepted Answer

A)  Decreased costs 
B)  Improved quality 
C)  Decreased production time 
D)  Increased employee moral 
E)  Decreased employee turnover 
A)  Decreased costs 
B)  Improved quality 
C)  Decreased production time 
D)  Increased employee moral 
E)  Decreased employee turnover

Question 12

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

Accepted Answer

A)  Monopolistic advantage 
B)  National competitive advantage 
C)  Resource advantage 
D)  Absolute advantage 
E)  Comparative advantage 
A)  Monopolistic advantage 
B)  National competitive advantage 
C)  Resource advantage 
D)  Absolute advantage 
E)  Comparative advantage

Question 13

Which of the following is a person's belief about the importance of an individual compared to the importance of a group?

Accepted Answer

A)  Social orientation 
B)  Power orientation 
C)  Uncertainty orientation 
D)  Goal orientation 
E)  Time orientation 
A)  Social orientation 
B)  Power orientation 
C)  Uncertainty orientation 
D)  Goal orientation 
E)  Time orientation

Question 14

A subsidy is a tax designed to help companies who import products.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following directly affect the price and quantity of foreign made product in a country, by restricting the amount of product that can be imported?

Accepted Answer

A)  Local content law 
B)  Quotas 
C)  Cartels 
D)  Subsidies 
E)  Protectionism 
A)  Local content law 
B)  Quotas 
C)  Cartels 
D)  Subsidies 
E)  Protectionism

Question 16

Which of the following is a government payment to help a domestic business compete with foreign firms?

Accepted Answer

A)  Revenue tariff 
B)  Protectionist tariff 
C)  Import buy-back 
D)  Export rebate 
E)  Subsidy 
A)  Revenue tariff 
B)  Protectionist tariff 
C)  Import buy-back 
D)  Export rebate 
E)  Subsidy

Question 17

Which of the following types of payments are usually received by an exporter as an ongoing payment calculated as a percentage of the license holder's sales?

Accepted Answer

A)  Flat fees 
B)  Royalties 
C)  Agent fees 
D)  Subsidies 
E)  Direct investments 
A)  Flat fees 
B)  Royalties 
C)  Agent fees 
D)  Subsidies 
E)  Direct investments

Question 18

What is the common currency for nations who are members of the European Union?

Accepted Answer

A)  Deutsche Mark 
B)  Euro 
C)  Dollar 
D)  Lira 
E)  Franc 
A)  Deutsche Mark 
B)  Euro 
C)  Dollar 
D)  Lira 
E)  Franc

Question 19

When the value of one country's currency relative to that of another varies with market conditions, which of the following exists?

Accepted Answer

A)  Floating exchange rate 
B)  Fixed exchange rate 
C)  Indexed exchange rate 
D)  Flat exchange rate 
E)  Balanced exchange rate 
A)  Floating exchange rate 
B)  Fixed exchange rate 
C)  Indexed exchange rate 
D)  Flat exchange rate 
E)  Balanced exchange rate

Question 20

The United States has large trade deficits with Japan, China, and Mexico. This means that the United States has imported more from them than what they have purchased from us.

Accepted Answer

A) True 
 B)False

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Suppose the United States requires products sold in the United States be at least 51 percent made in the United States. Which of the following denotes this type of policy?

Which of the following refers to associations of producers that control supply and prices?

What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region?

Ford, an American car company, purchased Volvo, which is based in Sweden. What is this an example of?

In which international organization structure does a firm have greatest control over foreign activities?

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

A comparative advantage exists when a country can produce something more cheaply and/or of higher quality than any other country.

Even free market economies often establish some system of quotas and/or tariffs.

The single largest trading partner of the United States is China.

What is the advantage for a business who uses offshoring in their manufacturing process?

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

Which of the following is a person's belief about the importance of an individual compared to the importance of a group?

A subsidy is a tax designed to help companies who import products.

Which of the following directly affect the price and quantity of foreign made product in a country, by restricting the amount of product that can be imported?

Which of the following is a government payment to help a domestic business compete with foreign firms?

Which of the following types of payments are usually received by an exporter as an ongoing payment calculated as a percentage of the license holder's sales?

What is the common currency for nations who are members of the European Union?

When the value of one country's currency relative to that of another varies with market conditions, which of the following exists?

The United States has large trade deficits with Japan, China, and Mexico. This means that the United States has imported more from them than what they have purchased from us.

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters

Exam 4: Understanding the Global Context of Business

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Suppose the United States requires products sold in the United States be at least 51 percent made in the United States. Which of the following denotes this type of policy?

Which of the following refers to associations of producers that control supply and prices?

What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region?

Ford, an American car company, purchased Volvo, which is based in Sweden. What is this an example of?

In which international organization structure does a firm have greatest control over foreign activities?

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

A comparative advantage exists when a country can produce something more cheaply and/or of higher quality than any other country.

Even free market economies often establish some system of quotas and/or tariffs.

The single largest trading partner of the United States is China.

What is the advantage for a business who uses offshoring in their manufacturing process?

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

Which of the following is a person's belief about the importance of an individual compared to the importance of a group?

A subsidy is a tax designed to help companies who import products.

Which of the following directly affect the price and quantity of foreign made product in a country, by restricting the amount of product that can be imported?

Which of the following is a government payment to help a domestic business compete with foreign firms?

Which of the following types of payments are usually received by an exporter as an ongoing payment calculated as a percentage of the license holder's sales?

What is the common currency for nations who are members of the European Union?

When the value of one country's currency relative to that of another varies with market conditions, which of the following exists?

The United States has large trade deficits with Japan, China, and Mexico. This means that the United States has imported more from them than what they have purchased from us.

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Managing Business Finances

Filters