Question 1

The EU organization that ensures consistent interpretation and application of EU treaties is the ________.

Accepted Answer

A)  European Commission 
B)  Council of Ministers 
C)  Court of Justice 
D)  Council of Treaties and Laws 
A)  European Commission 
B)  Council of Ministers 
C)  Court of Justice 
D)  Council of Treaties and Laws

Question 2

Which of the following is the primary focus of the African Union (AU)?

Accepted Answer

A)  FDI influx 
B)  democracy 
C)  economic integration 
D)  intrazonal trade relations 
A)  FDI influx 
B)  democracy 
C)  economic integration 
D)  intrazonal trade relations

Question 3

Which of the following primarily triggered Toyota's investment in the European Union?

Accepted Answer

A)  Europeans demanded affordable, high quality cars from Japan. 
B)  A common currency gave Europeans more buying power. 
C)  The EU lowered trade barriers on foreign auto imports. 
D)  Japan and the EU formed a free trade agreement. 
A)  Europeans demanded affordable, high quality cars from Japan. 
B)  A common currency gave Europeans more buying power. 
C)  The EU lowered trade barriers on foreign auto imports. 
D)  Japan and the EU formed a free trade agreement.

Question 4

Under the WTO agreement,________.

Accepted Answer

A)  a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures 
B)  there is no dispute resolution mechanism except for trade involving environmental products 
C)  countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism 
D)  tariffs are permitted to be levied by developed countries against developing countries but not against each other 
A)  a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures 
B)  there is no dispute resolution mechanism except for trade involving environmental products 
C)  countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism 
D)  tariffs are permitted to be levied by developed countries against developing countries but not against each other

Question 5

Which of the following groups of countries is most likely to form a regional trading group?

Accepted Answer

A)  India, Argentina, France 
B)  Canada, United States, Mexico 
C)  Brazil, Ukraine, Japan 
D)  Spain, South Africa, Mongolia 
A)  India, Argentina, France 
B)  Canada, United States, Mexico 
C)  Brazil, Ukraine, Japan 
D)  Spain, South Africa, Mongolia

Question 6

Which of the following recently threatened the future of the EU's common currency?

Accepted Answer

A)  refusal of the UK to use the euro 
B)  failed mergers and acquisitions 
C)  debt crisis in Greece 
D)  human rights issues 
A)  refusal of the UK to use the euro 
B)  failed mergers and acquisitions 
C)  debt crisis in Greece 
D)  human rights issues

Question 7

The formation of CARICOM has primarily been triggered by the desire of Jamaica,Trinidad,and Tobago to expand the region's market size and attract more FDI.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is Walmart's competitive advantage in Mexico?

Accepted Answer

A)  Walmart purchased all Mexican retail chains and eliminated competitors. 
B)  Walmart is able to transfer its "everyday low prices" concept to Mexico. 
C)  Walmart offers affordable, unique products for niche markets in Mexico. 
D)  Customers prefer to buy from American companies instead of Mexican companies. 
A)  Walmart purchased all Mexican retail chains and eliminated competitors. 
B)  Walmart is able to transfer its "everyday low prices" concept to Mexico. 
C)  Walmart offers affordable, unique products for niche markets in Mexico. 
D)  Customers prefer to buy from American companies instead of Mexican companies.

Question 9

Production location is not an important choice when doing business in the European Union.

Accepted Answer

A) True 
 B)False

Question 10

Each country in NAFTA sets its own tariffs to the rest of the world.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

Accepted Answer

A)  Trading groups have no influence on the size of the regional market. 
B)  Regional trading groups can define the rules under which companies must operate within that region. 
C)  Companies never need to change their organizational structure to take advantage of regional trading groups. 
D)  Regional trading groups have no influence on an MNE's strategy since they operate worldwide. 
A)  Trading groups have no influence on the size of the regional market. 
B)  Regional trading groups can define the rules under which companies must operate within that region. 
C)  Companies never need to change their organizational structure to take advantage of regional trading groups. 
D)  Regional trading groups have no influence on an MNE's strategy since they operate worldwide.

Question 12

Toyota has been successful in Europe by exporting cars to Europe as well as designing and manufacturing cars in Europe for the European market.

Accepted Answer

A) True 
 B)False

Question 13

What is the difference between a free trade agreement and a customs union? Provide examples of each in your answer.

Accepted Answer

The goal of an FTA is to abolish all tar

Question 14

Are commodity agreements effective? Why or why not?

Accepted Answer

Commodity agreements used to be influent

Question 15

When free mobility of factors of production is added to a common market,the result is a customs union.

Accepted Answer

A) True 
 B)False

Question 16

NAFTA is a good example of ________.

Accepted Answer

A)  trade divestment 
B)  trade diversion 
C)  the theory of trade disruption 
D)  the theory of trade implementation 
A)  trade divestment 
B)  trade diversion 
C)  the theory of trade disruption 
D)  the theory of trade implementation

Question 17

One of the reasons that neighboring countries tend to ally is similar consumer tastes.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following accurately identifies a difference between GATT and the WTO?

Accepted Answer

A)  GATT could enforce member compliance with agreements, but the WTO cannot. 
B)  At its inception, GATT had more member nations than the WTO currently has. 
C)  GATT withdrew the most-favored-nation clause, but the WTO reinstated it. 
D)  GATT rules did not cover trade in services, but the rules of the WTO do. 
A)  GATT could enforce member compliance with agreements, but the WTO cannot. 
B)  At its inception, GATT had more member nations than the WTO currently has. 
C)  GATT withdrew the most-favored-nation clause, but the WTO reinstated it. 
D)  GATT rules did not cover trade in services, but the rules of the WTO do.

Question 19

What are the rules of origin and regional content provisions of NAFTA?

Accepted Answer

Because NAFTA is a free trade agreement

Question 20

Most MNEs generate a majority of their revenues in their home regions.

Accepted Answer

A) True 
 B)False

The EU organization that ensures consistent interpretation and application of EU treaties is the ________.

Which of the following is the primary focus of the African Union (AU)?

Which of the following primarily triggered Toyota's investment in the European Union?

Under the WTO agreement,________.

Which of the following groups of countries is most likely to form a regional trading group?

Which of the following recently threatened the future of the EU's common currency?

The formation of CARICOM has primarily been triggered by the desire of Jamaica,Trinidad,and Tobago to expand the region's market size and attract more FDI.

Which of the following is Walmart's competitive advantage in Mexico?

Production location is not an important choice when doing business in the European Union.

Each country in NAFTA sets its own tariffs to the rest of the world.

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

Toyota has been successful in Europe by exporting cars to Europe as well as designing and manufacturing cars in Europe for the European market.

What is the difference between a free trade agreement and a customs union? Provide examples of each in your answer.

Are commodity agreements effective? Why or why not?

When free mobility of factors of production is added to a common market,the result is a customs union.

NAFTA is a good example of ________.

One of the reasons that neighboring countries tend to ally is similar consumer tastes.

Which of the following accurately identifies a difference between GATT and the WTO?

What are the rules of origin and regional content provisions of NAFTA?

Most MNEs generate a majority of their revenues in their home regions.

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 EU organization that ensures consistent interpretation and application of EU treaties is the ________.

Which of the following is the primary focus of the African Union (AU)?

Which of the following primarily triggered Toyota's investment in the European Union?

Under the WTO agreement,________.

Which of the following groups of countries is most likely to form a regional trading group?

Which of the following recently threatened the future of the EU's common currency?

The formation of CARICOM has primarily been triggered by the desire of Jamaica,Trinidad,and Tobago to expand the region's market size and attract more FDI.

Which of the following is Walmart's competitive advantage in Mexico?

Production location is not an important choice when doing business in the European Union.

Each country in NAFTA sets its own tariffs to the rest of the world.

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

Toyota has been successful in Europe by exporting cars to Europe as well as designing and manufacturing cars in Europe for the European market.

What is the difference between a free trade agreement and a customs union? Provide examples of each in your answer.

Are commodity agreements effective? Why or why not?

When free mobility of factors of production is added to a common market,the result is a customs union.

NAFTA is a good example of ________.

One of the reasons that neighboring countries tend to ally is similar consumer tastes.

Which of the following accurately identifies a difference between GATT and the WTO?

What are the rules of origin and regional content provisions of NAFTA?

Most MNEs generate a majority of their revenues in their home regions.

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