Question 1

Since NAFTA,Canadian trade with Latin American countries has tripled.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following groups is likely to be hurt economically if the value of the Canadian dollar rises relative to the euro?

Accepted Answer

A)  Canadian tourists visiting Europe 
B)  European firms exporting goods to Canada 
C)  Canadian farmers exporting goods to Europe 
D)  Canadian firms with euro-dominated loans 
A)  Canadian tourists visiting Europe 
B)  European firms exporting goods to Canada 
C)  Canadian farmers exporting goods to Europe 
D)  Canadian firms with euro-dominated loans

Question 3

A Japanese insurance company purchases U.S.government securities.From the perspective of the United States,the balance of trade with Japan will ________ and the balance of payments with Japan will ________.

Accepted Answer

A)  not change;improve 
B)  not change;get worse 
C)  improve;improve 
D)  improve;get worse 
A)  not change;improve 
B)  not change;get worse 
C)  improve;improve 
D)  improve;get worse

Question 4

Discuss the advantages of the North American Free Trade Agreement (NAFTA).

Accepted Answer

NAFTA eliminates all trade barriers and

Question 5

If a nation has an unfavourable balance of trade,it also has an unfavourable balance of payments.

Accepted Answer

A) True 
 B)False

Question 6

Countertrade is another term for international bartering.

Accepted Answer

A) True 
 B)False

Question 7

_________ are a common trade restriction imposed by the government on agricultural products.

Accepted Answer

A)  Exchange controls devaluation 
B)  Embargos 
C)  Quotas 
D)  Foreign trade zone 
A)  Exchange controls devaluation 
B)  Embargos 
C)  Quotas 
D)  Foreign trade zone

Question 8

A less-developed country wants to build new port facilities,which will allow it to increase agricultural exports.Financing for this project could come from the ________.

Accepted Answer

A)  International Monetary Fund 
B)  World Bank 
C)  United Nations 
D)  World Trade Organization 
A)  International Monetary Fund 
B)  World Bank 
C)  United Nations 
D)  World Trade Organization

Question 9

Due to its highly educated workforce and low labour costs,India has a comparative advantage in software development.

Accepted Answer

A) True 
 B)False

Question 10

Define countertrade,and explain why this form of international trade is a viable option for certain nations.

Accepted Answer

Countertrade is an international barteri

Question 11

If the value of the Canadian dollar falls relative to the U.S.dollar,Canadian exports to the United States should increase.

Accepted Answer

A) True 
 B)False

Question 12

Spanish is the most widely spoken language in the world.

Accepted Answer

A) True 
 B)False

Question 13

An absolute advantage occurs when a country can maintain ________.

Accepted Answer

A)  a monopoly by outlawing foreign imports 
B)  a monopoly by levying high taxes on imports 
C)  a monopoly by being the lowest-cost producer of a good or service 
D)  its advantage by producing a good or service more efficiently 
A)  a monopoly by outlawing foreign imports 
B)  a monopoly by levying high taxes on imports 
C)  a monopoly by being the lowest-cost producer of a good or service 
D)  its advantage by producing a good or service more efficiently

Question 14

A country's _____ is the difference between its exports and imports.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) dumping 
E) imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)devaluation
K)exchange rate
L)absolute advantage
M)global strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)countertrade 
A) offshoring 
B) balance of trade 
C) joint venture 
D) dumping 
E) imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)devaluation
K)exchange rate
L)absolute advantage
M)global strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)countertrade

Question 15

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

Accepted Answer

A) True 
 B)False

Question 16

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Accepted Answer

A) True 
 B)False

Question 17

Tyra spent a two-week vacation in Italy and purchased more than $1,000 worth of Venetian glass.Upon returning to Canada,she was required to pay a ________ on the items.

Accepted Answer

A)  customs tax 
B)  protective tariff 
C)  revenue tariff 
D)  exchange rate tax 
A)  customs tax 
B)  protective tariff 
C)  revenue tariff 
D)  exchange rate tax

Question 18

A trade deficit exists when a nation's imports exceed its exports.

Accepted Answer

A) True 
 B)False

Question 19

A Canadian company operating in the European Union (EU)is required to adhere to European regulations,such as mandatory vacation time.

Accepted Answer

A) True 
 B)False

Question 20

The International Monetary Fund (IMF)was created to promote trade through financial cooperation.

Accepted Answer

A) True 
 B)False

Since NAFTA,Canadian trade with Latin American countries has tripled.

Which of the following groups is likely to be hurt economically if the value of the Canadian dollar rises relative to the euro?

A Japanese insurance company purchases U.S.government securities.From the perspective of the United States,the balance of trade with Japan will and the balance of payments with Japan will .

Discuss the advantages of the North American Free Trade Agreement (NAFTA).

If a nation has an unfavourable balance of trade,it also has an unfavourable balance of payments.

Countertrade is another term for international bartering.

_________ are a common trade restriction imposed by the government on agricultural products.

A less-developed country wants to build new port facilities,which will allow it to increase agricultural exports.Financing for this project could come from the ________.

Due to its highly educated workforce and low labour costs,India has a comparative advantage in software development.

Define countertrade,and explain why this form of international trade is a viable option for certain nations.

If the value of the Canadian dollar falls relative to the U.S.dollar,Canadian exports to the United States should increase.

Spanish is the most widely spoken language in the world.

An absolute advantage occurs when a country can maintain ________.

A country's _____ is the difference between its exports and imports.

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Tyra spent a two-week vacation in Italy and purchased more than $1,000 worth of Venetian glass.Upon returning to Canada,she was required to pay a ________ on the items.

A trade deficit exists when a nation's imports exceed its exports.

A Canadian company operating in the European Union (EU)is required to adhere to European regulations,such as mandatory vacation time.

The International Monetary Fund (IMF)was created to promote trade through financial cooperation.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 4: Competing in World Markets

Since NAFTA,Canadian trade with Latin American countries has tripled.

Which of the following groups is likely to be hurt economically if the value of the Canadian dollar rises relative to the euro?

A Japanese insurance company purchases U.S.government securities.From the perspective of the United States,the balance of trade with Japan will ________ and the balance of payments with Japan will ________.

Discuss the advantages of the North American Free Trade Agreement (NAFTA).

If a nation has an unfavourable balance of trade,it also has an unfavourable balance of payments.

Countertrade is another term for international bartering.

_________ are a common trade restriction imposed by the government on agricultural products.

A less-developed country wants to build new port facilities,which will allow it to increase agricultural exports.Financing for this project could come from the ________.

Due to its highly educated workforce and low labour costs,India has a comparative advantage in software development.

Define countertrade,and explain why this form of international trade is a viable option for certain nations.

If the value of the Canadian dollar falls relative to the U.S.dollar,Canadian exports to the United States should increase.

Spanish is the most widely spoken language in the world.

An absolute advantage occurs when a country can maintain ________.

A country's _____ is the difference between its exports and imports.

Gross domestic product (GDP)growth in the United States is higher than GDP growth in any other country.

One advantage of a licensing agreement is that little or no investment is required to begin operating.

Tyra spent a two-week vacation in Italy and purchased more than $1,000 worth of Venetian glass.Upon returning to Canada,she was required to pay a ________ on the items.

A trade deficit exists when a nation's imports exceed its exports.

A Canadian company operating in the European Union (EU)is required to adhere to European regulations,such as mandatory vacation time.

The International Monetary Fund (IMF)was created to promote trade through financial cooperation.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

A Japanese insurance company purchases U.S.government securities.From the perspective of the United States,the balance of trade with Japan will and the balance of payments with Japan will .