Question 1

The level of integration of free trade areas is greater than that of customs unions.

Accepted Answer

A) True 
 B)False

Question 2

The ________ is the simplest and most common level of regional integration.

Accepted Answer

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

Question 3

Which of the following is an example of nontariff trade barrier?

Accepted Answer

A) Gayle Inc. is a U.S.-based retailer that imports cosmetic products manufactured in Thailand. These products pass through U.S. customs and are subject to a 5 percent import duty. 
B) The U.S. imports chocolates manufactured in Belgium that cost $65 a box with taxes. 
C) The U.S. Department of Commerce announced that white sugar imports will be limited to 7,500 million tons. 
D) Spices imported from India to the U.S. for sale in the domestic market are subject to a 10 percent import duty. 
A) Gayle Inc. is a U.S.-based retailer that imports cosmetic products manufactured in Thailand. These products pass through U.S. customs and are subject to a 5 percent import duty. 
B) The U.S. imports chocolates manufactured in Belgium that cost $65 a box with taxes. 
C) The U.S. Department of Commerce announced that white sugar imports will be limited to 7,500 million tons. 
D) Spices imported from India to the U.S. for sale in the domestic market are subject to a 10 percent import duty.

Question 4

Harmonization of standards is one of the steps taken by the EU to become an economic union.

Accepted Answer

A) True 
 B)False

Question 5

Protectionist policies may also lead to ________.

Accepted Answer

A) price inflation 
B) increased choices for buyers 
C) easy availability of products 
D) high incentive to improve quality 
A) price inflation 
B) increased choices for buyers 
C) easy availability of products 
D) high incentive to improve quality

Question 6

Obtaining economic development incentives from host-or home-country governments increases the cost of trade and investment barriers.

Accepted Answer

A) True 
 B)False

Question 7

A revenue tariff aims to protect domestic industries from foreign competition.

Accepted Answer

A) True 
 B)False

Question 8

Nations pursuing regional integration seek to ________.

Accepted Answer

A) increase the scale of the marketplace for firms inside the economic bloc 
B) help firms increase the scale of operations and enhanced productivity 
C) attract direct investment from outside the bloc 
D) all of the above 
A) increase the scale of the marketplace for firms inside the economic bloc 
B) help firms increase the scale of operations and enhanced productivity 
C) attract direct investment from outside the bloc 
D) all of the above

Question 9

Subsidies can help counterbalance harmful consequences that disproportionately affect the poor.

Accepted Answer

A) True 
 B)False

Question 10

Regional integration greatly increases the scale of the marketplace for firms inside the economic bloc.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following economic blocs includes Switzerland as a member country?

Accepted Answer

A) EU 
B) EFTA 
C) CAN 
D) APEC 
A) EU 
B) EFTA 
C) CAN 
D) APEC

Question 12

Given the high trade barriers in Mexico, the management of NAC is most likely to consider ________ to be an inappropriate entry strategy.

Accepted Answer

A) exporting 
B) FDI 
C) joint ventures 
D) licensing 
A) exporting 
B) FDI 
C) joint ventures 
D) licensing

Question 13

NAFTA is an example of which of the following levels of regional integration?

Accepted Answer

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

Question 14

Describe four advantages of regional integration. Provide an example to illustrate each point.

Accepted Answer

a.Expand market size-Regional integratio

Question 15

________ represent a major driver of market globalization.

Accepted Answer

A) Continued reductions 
B) Export controls 
C) Import controls 
D) Prohibitive tariffs 
A) Continued reductions 
B) Export controls 
C) Import controls 
D) Prohibitive tariffs

Question 16

Typically, administrative and bureaucratic procedures ________.

Accepted Answer

A) speed up the investment activities of firms 
B) hinder the activities of importers 
C) boost investment activities 
D) harm late importers 
A) speed up the investment activities of firms 
B) hinder the activities of importers 
C) boost investment activities 
D) harm late importers

Question 17

Which of the following Asian countries had launched an ambitious program of industrialization and export-led development that contributed to its rise from poverty in the 1940s to one of the world's wealthiest countries by the 1980s?

Accepted Answer

A) Indonesia 
B) China 
C) Japan 
D) India 
A) Indonesia 
B) China 
C) Japan 
D) India

Question 18

In Cadmia, foreign-owned automobile manufacturing companies must be managed by a Cadmian national and most board members must be Cadmian citizens. This exemplifies ________.

Accepted Answer

A) FDI and ownership restrictions 
B) administrative and bureaucratic procedures 
C) Regulations and technical standards 
D) Anti-dumping duty 
A) FDI and ownership restrictions 
B) administrative and bureaucratic procedures 
C) Regulations and technical standards 
D) Anti-dumping duty

Question 19

Increasing trade barriers are a major factor in the growth of developing nations and global commerce.

Accepted Answer

A) True 
 B)False

Question 20

What is a foreign trade zone (FTZ)? In a short essay, explain how FTZs are utilized by firms.

Accepted Answer

A foreign trade zone is an area within c

The level of integration of free trade areas is greater than that of customs unions.

The ________ is the simplest and most common level of regional integration.

Which of the following is an example of nontariff trade barrier?

Harmonization of standards is one of the steps taken by the EU to become an economic union.

Protectionist policies may also lead to ________.

Obtaining economic development incentives from host-or home-country governments increases the cost of trade and investment barriers.

A revenue tariff aims to protect domestic industries from foreign competition.

Nations pursuing regional integration seek to ________.

Subsidies can help counterbalance harmful consequences that disproportionately affect the poor.

Regional integration greatly increases the scale of the marketplace for firms inside the economic bloc.

Which of the following economic blocs includes Switzerland as a member country?

Given the high trade barriers in Mexico, the management of NAC is most likely to consider ________ to be an inappropriate entry strategy.

NAFTA is an example of which of the following levels of regional integration?

Describe four advantages of regional integration. Provide an example to illustrate each point.

________ represent a major driver of market globalization.

Typically, administrative and bureaucratic procedures ________.

Which of the following Asian countries had launched an ambitious program of industrialization and export-led development that contributed to its rise from poverty in the 1940s to one of the world's wealthiest countries by the 1980s?

In Cadmia, foreign-owned automobile manufacturing companies must be managed by a Cadmian national and most board members must be Cadmian citizens. This exemplifies ________.

Increasing trade barriers are a major factor in the growth of developing nations and global commerce.

What is a foreign trade zone (FTZ)? In a short essay, explain how FTZs are utilized by firms.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 7: Government Intervention and Regional Economic Integration

The level of integration of free trade areas is greater than that of customs unions.

The ________ is the simplest and most common level of regional integration.

Which of the following is an example of nontariff trade barrier?

Harmonization of standards is one of the steps taken by the EU to become an economic union.

Protectionist policies may also lead to ________.

Obtaining economic development incentives from host-or home-country governments increases the cost of trade and investment barriers.

A revenue tariff aims to protect domestic industries from foreign competition.

Nations pursuing regional integration seek to ________.

Subsidies can help counterbalance harmful consequences that disproportionately affect the poor.

Regional integration greatly increases the scale of the marketplace for firms inside the economic bloc.

Which of the following economic blocs includes Switzerland as a member country?

Given the high trade barriers in Mexico, the management of NAC is most likely to consider ________ to be an inappropriate entry strategy.

NAFTA is an example of which of the following levels of regional integration?

Describe four advantages of regional integration. Provide an example to illustrate each point.

________ represent a major driver of market globalization.

Typically, administrative and bureaucratic procedures ________.

Which of the following Asian countries had launched an ambitious program of industrialization and export-led development that contributed to its rise from poverty in the 1940s to one of the world's wealthiest countries by the 1980s?

In Cadmia, foreign-owned automobile manufacturing companies must be managed by a Cadmian national and most board members must be Cadmian citizens. This exemplifies ________.

Increasing trade barriers are a major factor in the growth of developing nations and global commerce.

What is a foreign trade zone (FTZ)? In a short essay, explain how FTZs are utilized by firms.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters