Question 1

Most trade agreements 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 2

Static effects are the overall growth in the market and the impact on a company caused by expanding production and by the company's ability to achieve greater economies of scale.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about the euro is true?

Accepted Answer

A) It was adopted by all existing EU members when it was first initiated. 
B) It must be adopted by countries as a precondition to joining the EU. 
C) It cannot be used by countries that are not members of the EU. 
D) It was designed to eliminate currency as a barrier to trade in the EU. 
A) It was adopted by all existing EU members when it was first initiated. 
B) It must be adopted by countries as a precondition to joining the EU. 
C) It cannot be used by countries that are not members of the EU. 
D) It was designed to eliminate currency as a barrier to trade in the EU.

Question 5

GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following was primarily responsible for establishing the euro?

Accepted Answer

A) Lisbon Treaty 
B) Treaty of Maastricht 
C) European Finance Act 
D) Single European Act 
A) Lisbon Treaty 
B) Treaty of Maastricht 
C) European Finance Act 
D) Single European Act

Question 8

In a brief essay, explain the roles of the World Trade Organization and the United Nations in international trade.

Accepted Answer

The World Trade Organization (WTO)replac

Question 9

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 10

The introduction of the euro has eliminated currency as a barrier to trade in all European countries.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The European Commission is the European Union's ultimate decision-making body and is composed of the different ministers of the member countries.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

The goal of a free trade agreement is to abolish all tariffs among member countries.

Accepted Answer

A) True 
 B)False

Question 16

The 27 member EU negotiates trade agreements as one.The EU and Brazil have negotiated a strategic trade alliance which is an example of a ________.

Accepted Answer

A) customs union 
B) global free trade agreement 
C) bilateral agreement 
D) multilateral agreement 
A) customs union 
B) global free trade agreement 
C) bilateral agreement 
D) multilateral agreement

Question 17

MNEs are attracted to regional trading groups because of their large market sizes and production locations, and because they ________.

Accepted Answer

A) are good sources for raw materials 
B) implement trade restrictions 
C) offer both internal and external tariffs 
D) have very little competition 
A) are good sources for raw materials 
B) implement trade restrictions 
C) offer both internal and external tariffs 
D) have very little competition

Question 18

The role of most commodity agreements now is to ________.

Accepted Answer

A) discuss issues and disseminate information about commodities 
B) keep consumer countries from controlling commodity prices 
C) allow producer countries to control inflation by keeping commodity prices low 
D) stabilize prices through regional alliances between producer and consumer countries 
A) discuss issues and disseminate information about commodities 
B) keep consumer countries from controlling commodity prices 
C) allow producer countries to control inflation by keeping commodity prices low 
D) stabilize prices through regional alliances between producer and consumer countries

Question 19

Baldani Manufacturing, an Italian firm, plans to expand into Asia.In order to take advantage of regional trading groups, Baldani will most likely need to change its ________.

Accepted Answer

A) operating strategies 
B) selection test methods 
C) bilateral trade agreements 
D) economic integration methods 
A) operating strategies 
B) selection test methods 
C) bilateral trade agreements 
D) economic integration methods

Question 20

OPEC is an example of a producer's cartel that is successful because of its ability to institute tariffs on oil exports.

Accepted Answer

A) True 
 B)False

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

Static effects are the overall growth in the market and the impact on a company caused by expanding production and by the company's ability to achieve greater economies of scale.

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

Which of the following statements about the euro is true?

GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.

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 was primarily responsible for establishing the euro?

In a brief essay, explain the roles of the World Trade Organization and the United Nations in international trade.

Which of the following is a unique provision of NAFTA?

The introduction of the euro has eliminated currency as a barrier to trade in all European countries.

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

The European Commission is the European Union's ultimate decision-making body and is composed of the different ministers of the member countries.

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

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

The goal of a free trade agreement is to abolish all tariffs among member countries.

The 27 member EU negotiates trade agreements as one.The EU and Brazil have negotiated a strategic trade alliance which is an example of a ________.

MNEs are attracted to regional trading groups because of their large market sizes and production locations, and because they ________.

The role of most commodity agreements now is to ________.

Baldani Manufacturing, an Italian firm, plans to expand into Asia.In order to take advantage of regional trading groups, Baldani will most likely need to change its ________.

OPEC is an example of a producer's cartel that is successful because of its ability to institute tariffs on oil exports.

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters

Exam 8: Cross-National Cooperation and Agreements

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

Static effects are the overall growth in the market and the impact on a company caused by expanding production and by the company's ability to achieve greater economies of scale.

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

Which of the following statements about the euro is true?

GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.

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 was primarily responsible for establishing the euro?

In a brief essay, explain the roles of the World Trade Organization and the United Nations in international trade.

Which of the following is a unique provision of NAFTA?

The introduction of the euro has eliminated currency as a barrier to trade in all European countries.

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

The European Commission is the European Union's ultimate decision-making body and is composed of the different ministers of the member countries.

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

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

The goal of a free trade agreement is to abolish all tariffs among member countries.

The 27 member EU negotiates trade agreements as one.The EU and Brazil have negotiated a strategic trade alliance which is an example of a ________.

MNEs are attracted to regional trading groups because of their large market sizes and production locations, and because they ________.

The role of most commodity agreements now is to ________.

Baldani Manufacturing, an Italian firm, plans to expand into Asia.In order to take advantage of regional trading groups, Baldani will most likely need to change its ________.

OPEC is an example of a producer's cartel that is successful because of its ability to institute tariffs on oil exports.

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters