Question 1

What two factors led to the creation of the ASEAN trading bloc?

Accepted Answer

A decrease in government control of national economies that stimulated local entrepreneurs and attracted FDI and a defensive response to the growth of other regional trading blocs led to the creation of ASEAN.

Question 2

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

Accepted Answer

A)  agricultural goods 
B)  tariff reductions 
C)  foreign exchange 
D)  service trade 
A)  agricultural goods 
B)  tariff reductions 
C)  foreign exchange 
D)  service trade A

Question 3

What was the most important aspect of the Maastricht Treaty?

Accepted Answer

The most important aspect of the Maastricht Treaty was the establishment of economic and monetary union among European Union countries.

Question 4

How did the European Union initially eliminate conflicts among member countries?

Accepted Answer

A)  mandatory arbitration 
B)  harmonization 
C)  negotiation 
D)  legislation 
A)  mandatory arbitration 
B)  harmonization 
C)  negotiation 
D)  legislation

Question 5

Salvo Software develops computer games and business software systems that are popular throughout the world. Like many software firms, Salvo has experienced problems with illegal counterfeiting of its products. Given this concern, which of the following would be of most interest to Salvo?

Accepted Answer

A)  TRIMS 
B)  BARS 
C)  TRIPS 
D)  GATS 
A)  TRIMS 
B)  BARS 
C)  TRIPS 
D)  GATS

Question 6

A political union ________.

Accepted Answer

A)  is complete political and economic integration of two or more countries 
B)  eliminates trade barriers among member countries and reduces trade deflection 
C)  requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production 
D)  involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembers 
A)  is complete political and economic integration of two or more countries 
B)  eliminates trade barriers among member countries and reduces trade deflection 
C)  requires members to eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate barriers to the movement of the factors of production 
D)  involves the elimination of internal trade barriers among member countries and the adoption of common external trade policies toward nonmembers

Question 7

What is a free trade area? Provide an example of a free trade area.

Accepted Answer

A free trade area encourages t

Question 8

The Asia-Pacific Economic Cooperation Initiative was developed in response to the growing interdependence of the Asia-Pacific economies.

Accepted Answer

A) True 
 B)False

Question 9

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

Accepted Answer

A) True 
 B)False

Question 10

A(n) ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

Accepted Answer

A)  free trade area 
B)  customs union 
C)  common market 
D)  economic union 
A)  free trade area 
B)  customs union 
C)  common market 
D)  economic union

Question 11

For most of their histories, Australia and New Zealand have been trade rivals.

Accepted Answer

A) True 
 B)False

Question 12

Executives at TVR Enterprises, an MNE based in Germany, feel threatened by a pending EU regulation that will require the MNE to reduce its production capacity. Which of the following actions is the most appropriate for TVR?

Accepted Answer

A)  complying with the EU's mutual recognition laws 
B)  apply for a harmonization regulation with the European Union 
C)  appealing to the European Court of Justice 
D)  lobbying the European Commission 
A)  complying with the EU's mutual recognition laws 
B)  apply for a harmonization regulation with the European Union 
C)  appealing to the European Court of Justice 
D)  lobbying the European Commission

Question 13

CVR Enterprises is based in the EU country that has the greatest number of votes in Parliament. CVR Enterprises is most likely a ________ firm.

Accepted Answer

A)  German 
B)  French 
C)  British 
D)  Italian 
A)  German 
B)  French 
C)  British 
D)  Italian

Question 14

What functions are performed by the European Commission?

Accepted Answer

It proposes legislation to be considered

Question 15

A ________ is a factory in which little transformation of a product is undertaken.

Accepted Answer

A)  maquiladora 
B)  screwdriver plant 
C)  greenfield operation 
D)  global shipping platform 
A)  maquiladora 
B)  screwdriver plant 
C)  greenfield operation 
D)  global shipping platform

Question 16

Under GATT, tariffs fell from about ________ in 1948 to about ________ in 2005.

Accepted Answer

A)  20 percent; 4 percent 
B)  28 percent; 5 percent 
C)  40 percent; 3 percent 
D)  60 percent; 10 percent 
A)  20 percent; 4 percent 
B)  28 percent; 5 percent 
C)  40 percent; 3 percent 
D)  60 percent; 10 percent

Question 17

The European Court of Justice declared Germany's 450-year-old beer purity law illegal.

Accepted Answer

A) True 
 B)False

Question 18

Mexico relied on which of the following trade activities between 1917 and 1982?

Accepted Answer

A)  low import tariffs 
B)  foreign direct investment restrictions 
C)  privatization of key industries 
D)  membership in GATT and the WTO 
A)  low import tariffs 
B)  foreign direct investment restrictions 
C)  privatization of key industries 
D)  membership in GATT and the WTO

Question 19

What is the difference between an economic union and a political union? Which one characterizes the European Union? Why?

Accepted Answer

An economic union has all the characteri

Question 20

The European Commission serves as the legislative branch of the European Union.

Accepted Answer

A) True 
 B)False

What two factors led to the creation of the ASEAN trading bloc?

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

What was the most important aspect of the Maastricht Treaty?

How did the European Union initially eliminate conflicts among member countries?

Salvo Software develops computer games and business software systems that are popular throughout the world. Like many software firms, Salvo has experienced problems with illegal counterfeiting of its products. Given this concern, which of the following would be of most interest to Salvo?

A political union ________.

What is a free trade area? Provide an example of a free trade area.

The Asia-Pacific Economic Cooperation Initiative was developed in response to the growing interdependence of the Asia-Pacific economies.

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

A(n) ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

For most of their histories, Australia and New Zealand have been trade rivals.

Executives at TVR Enterprises, an MNE based in Germany, feel threatened by a pending EU regulation that will require the MNE to reduce its production capacity. Which of the following actions is the most appropriate for TVR?

CVR Enterprises is based in the EU country that has the greatest number of votes in Parliament. CVR Enterprises is most likely a ________ firm.

What functions are performed by the European Commission?

A ________ is a factory in which little transformation of a product is undertaken.

Under GATT, tariffs fell from about in 1948 to about in 2005.

The European Court of Justice declared Germany's 450-year-old beer purity law illegal.

Mexico relied on which of the following trade activities between 1917 and 1982?

What is the difference between an economic union and a political union? Which one characterizes the European Union? Why?

The European Commission serves as the legislative branch of the European Union.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 10: International Cooperation Among Nations

What two factors led to the creation of the ASEAN trading bloc?

As a participant at the Doha Round, you would experience the most negotiation difficulties in the area of ________.

What was the most important aspect of the Maastricht Treaty?

How did the European Union initially eliminate conflicts among member countries?

Salvo Software develops computer games and business software systems that are popular throughout the world. Like many software firms, Salvo has experienced problems with illegal counterfeiting of its products. Given this concern, which of the following would be of most interest to Salvo?

A political union ________.

What is a free trade area? Provide an example of a free trade area.

The Asia-Pacific Economic Cooperation Initiative was developed in response to the growing interdependence of the Asia-Pacific economies.

Now that it has gained entry to the World Trade Organization, China represents a threat to Mexico as a low-cost manufacturing location.

A(n) ________ combines the elimination of internal trade barriers among member countries with the adoption of common external trade policies toward nonmembers.

For most of their histories, Australia and New Zealand have been trade rivals.

Executives at TVR Enterprises, an MNE based in Germany, feel threatened by a pending EU regulation that will require the MNE to reduce its production capacity. Which of the following actions is the most appropriate for TVR?

CVR Enterprises is based in the EU country that has the greatest number of votes in Parliament. CVR Enterprises is most likely a ________ firm.

What functions are performed by the European Commission?

A ________ is a factory in which little transformation of a product is undertaken.

Under GATT, tariffs fell from about ________ in 1948 to about ________ in 2005.

The European Court of Justice declared Germany's 450-year-old beer purity law illegal.

Mexico relied on which of the following trade activities between 1917 and 1982?

What is the difference between an economic union and a political union? Which one characterizes the European Union? Why?

The European Commission serves as the legislative branch of the European Union.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Under GATT, tariffs fell from about in 1948 to about in 2005.