Question 1

The most-favored-nation policy is a WTO privilege that allows member nations to restrict tariff cuts to members.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT one of the regions included in the triad regions of the world?

Accepted Answer

A)  South America 
B)  Europe 
C)  North America 
D)  Asia 
A)  South America 
B)  Europe 
C)  North America 
D)  Asia

Question 3

Describe the different types of regional economic integration and give an example of each type.

Accepted Answer

a.Free trade area (FTA): The goal of a f

Question 4

Which of the following is most likely a true statement about the relationship between the United Nations and NGOs?

Accepted Answer

A)  The UN must license an NGO for it to be involved in any international relief efforts. 
B)  A UN committee discusses issues of importance to NGOs but does not regulate their activities. 
C)  The UN determines which NGOs can work on international humanitarian issues and relief efforts. 
D)  NGOs typically operate in only one country, whereas UN agencies can operate anywhere in the world. 
A)  The UN must license an NGO for it to be involved in any international relief efforts. 
B)  A UN committee discusses issues of importance to NGOs but does not regulate their activities. 
C)  The UN determines which NGOs can work on international humanitarian issues and relief efforts. 
D)  NGOs typically operate in only one country, whereas UN agencies can operate anywhere in the world.

Question 5

Since production has shifted to more efficient producers due to comparative advantage,consumers in Country X have had access to more goods at lower prices. Which of the following most likely exists?

Accepted Answer

A)  trade specialization 
B)  trade diversion 
C)  trade creation 
D)  trade internalization 
A)  trade specialization 
B)  trade diversion 
C)  trade creation 
D)  trade internalization

Question 6

Country A and Country B make an agreement to cooperate more closely and implement tariff reductions. Which of the following best describes this agreement?

Accepted Answer

A)  double commodity integration 
B)  multilateral integration 
C)  regional integration 
D)  bilateral integration 
A)  double commodity integration 
B)  multilateral integration 
C)  regional integration 
D)  bilateral integration

Question 7

According to regional content rules,at least ________ of the net cost of most products must come from the NAFTA region in order to get access to the tariff reductions of NAFTA.

Accepted Answer

A)  62.5% 
B)  50% 
C)  45% 
D)  40.5% 
A)  62.5% 
B)  50% 
C)  45% 
D)  40.5%

Question 8

Global integration occurs as countries from all over the world decide to cooperate through the ________.

Accepted Answer

A)  EU 
B)  NAFTA agreement 
C)  WTO 
D)  CARICOM 
A)  EU 
B)  NAFTA agreement 
C)  WTO 
D)  CARICOM

Question 9

The three major responsibilities of the ________ are legislative power,control over the budget,and supervision of executive decisions.

Accepted Answer

A)  European Commission 
B)  European Council 
C)  European Parliament 
D)  European Court of Justice 
A)  European Commission 
B)  European Council 
C)  European Parliament 
D)  European Court of Justice

Question 10

Most trade groups contain countries in the same area of the world. Why is this so?

Accepted Answer

A)  The distances that goods need to travel between such countries are short. 
B)  Distribution channels are not easily established in adjacent countries. 
C)  Adjacent countries are reluctant to coordinate policies. 
D)  Neighboring countries usually lack a common history and interests. 
A)  The distances that goods need to travel between such countries are short. 
B)  Distribution channels are not easily established in adjacent countries. 
C)  Adjacent countries are reluctant to coordinate policies. 
D)  Neighboring countries usually lack a common history and interests.

Question 11

Commodity agreements ________.

Accepted Answer

A)  were initially established to attempt to stabilize commodity prices 
B)  are effective in regulating the price of grains but not minerals 
C)  are effective in regulating the prices of both grains and minerals 
D)  were disbanded by the United Nations for being non-competitive 
A)  were initially established to attempt to stabilize commodity prices 
B)  are effective in regulating the price of grains but not minerals 
C)  are effective in regulating the prices of both grains and minerals 
D)  were disbanded by the United Nations for being non-competitive

Question 12

What was the primary purpose of the formation of Sinergia?

Accepted Answer

A)  charge tariffs on Walmart imports 
B)  purchase Walmart's major suppliers 
C)  better compete with Walmart on price 
D)  include Walmart in the regional supply chain 
A)  charge tariffs on Walmart imports 
B)  purchase Walmart's major suppliers 
C)  better compete with Walmart on price 
D)  include Walmart in the regional supply chain

Question 13

As companies expand internationally,they must change their organizational structure and operating strategies to take advantage of regional trading groups.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a unique provision of NAFTA?

Accepted Answer

A)  tariff elimination 
B)  common currency 
C)  environmental standards 
D)  immigration oversights and policies 
A)  tariff elimination 
B)  common currency 
C)  environmental standards 
D)  immigration oversights and policies

Question 15

Hudson Manufacturing is an MNE based in the U.S. with operations in Asia. The firm is considering expansion into the European Union. Which of the following questions is most relevant to the decision?

Accepted Answer

A)  What is the primary language of most workers? 
B)  Which country has the best production location? 
C)  Which currency has the most favorable value of the euro? 
D)  Which country has the lowest tariffs for manufactured products? 
A)  What is the primary language of most workers? 
B)  Which country has the best production location? 
C)  Which currency has the most favorable value of the euro? 
D)  Which country has the lowest tariffs for manufactured products?

Question 16

Anderson Enterprises is a U.S. firm that manufactures light fixtures for commercial and residential consumers. Anderson is looking to expand internationally,so the firm should most likely ________.

Accepted Answer

A)  focus on developing new recruitment strategies and selection tests 
B)  change their organizational structure to fit the norms of the foreign country 
C)  disregard changes in trading groups because they have little effect on a company 
D)  look to expand beyond the triad regions currently controlled by the top 500 MNEs 
A)  focus on developing new recruitment strategies and selection tests 
B)  change their organizational structure to fit the norms of the foreign country 
C)  disregard changes in trading groups because they have little effect on a company 
D)  look to expand beyond the triad regions currently controlled by the top 500 MNEs

Question 17

The Organization of Petroleum Exporting Countries ________.

Accepted Answer

A)  uses import tariffs to control oil prices 
B)  stabilizes prices based on demand 
C)  uses quotas to control oil prices 
D)  produces all of the world's oil 
A)  uses import tariffs to control oil prices 
B)  stabilizes prices based on demand 
C)  uses quotas to control oil prices 
D)  produces all of the world's oil

Question 18

Why is geography important to most regional trade agreements? Provide examples of RTAs to illustrate your answer.

Accepted Answer

There are a number of reasons why geogra

Question 19

________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall.

Accepted Answer

A)  Dynamic 
B)  Static 
C)  Economic 
D)  Barrier 
A)  Dynamic 
B)  Static 
C)  Economic 
D)  Barrier

Question 20

What are the functions of the European Commission,the European Parliament,the Council,and the European Court of Justice?

Accepted Answer

a.The European Commission provides the E

The most-favored-nation policy is a WTO privilege that allows member nations to restrict tariff cuts to members.

Which of the following is NOT one of the regions included in the triad regions of the world?

Describe the different types of regional economic integration and give an example of each type.

Which of the following is most likely a true statement about the relationship between the United Nations and NGOs?

Since production has shifted to more efficient producers due to comparative advantage,consumers in Country X have had access to more goods at lower prices. Which of the following most likely exists?

Country A and Country B make an agreement to cooperate more closely and implement tariff reductions. Which of the following best describes this agreement?

According to regional content rules,at least ________ of the net cost of most products must come from the NAFTA region in order to get access to the tariff reductions of NAFTA.

Global integration occurs as countries from all over the world decide to cooperate through the ________.

The three major responsibilities of the ________ are legislative power,control over the budget,and supervision of executive decisions.

Most trade groups contain countries in the same area of the world. Why is this so?

Commodity agreements ________.

What was the primary purpose of the formation of Sinergia?

As companies expand internationally,they must change their organizational structure and operating strategies to take advantage of regional trading groups.

Which of the following is a unique provision of NAFTA?

Hudson Manufacturing is an MNE based in the U.S. with operations in Asia. The firm is considering expansion into the European Union. Which of the following questions is most relevant to the decision?

Anderson Enterprises is a U.S. firm that manufactures light fixtures for commercial and residential consumers. Anderson is looking to expand internationally,so the firm should most likely ________.

The Organization of Petroleum Exporting Countries ________.

Why is geography important to most regional trade agreements? Provide examples of RTAs to illustrate your answer.

________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall.

What are the functions of the European Commission,the European Parliament,the Council,and the European Court of Justice?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 8: Cross-National Cooperation and Agreements

The most-favored-nation policy is a WTO privilege that allows member nations to restrict tariff cuts to members.

Which of the following is NOT one of the regions included in the triad regions of the world?

Describe the different types of regional economic integration and give an example of each type.

Which of the following is most likely a true statement about the relationship between the United Nations and NGOs?

Since production has shifted to more efficient producers due to comparative advantage,consumers in Country X have had access to more goods at lower prices. Which of the following most likely exists?

Country A and Country B make an agreement to cooperate more closely and implement tariff reductions. Which of the following best describes this agreement?

According to regional content rules,at least ________ of the net cost of most products must come from the NAFTA region in order to get access to the tariff reductions of NAFTA.

Global integration occurs as countries from all over the world decide to cooperate through the ________.

The three major responsibilities of the ________ are legislative power,control over the budget,and supervision of executive decisions.

Most trade groups contain countries in the same area of the world. Why is this so?

Commodity agreements ________.

What was the primary purpose of the formation of Sinergia?

As companies expand internationally,they must change their organizational structure and operating strategies to take advantage of regional trading groups.

Which of the following is a unique provision of NAFTA?

Hudson Manufacturing is an MNE based in the U.S. with operations in Asia. The firm is considering expansion into the European Union. Which of the following questions is most relevant to the decision?

Anderson Enterprises is a U.S. firm that manufactures light fixtures for commercial and residential consumers. Anderson is looking to expand internationally,so the firm should most likely ________.

The Organization of Petroleum Exporting Countries ________.

Why is geography important to most regional trade agreements? Provide examples of RTAs to illustrate your answer.

________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall.

What are the functions of the European Commission,the European Parliament,the Council,and the European Court of Justice?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters