Question 1

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 2

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 3

________ effects of economic integration 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) Dynamic 
B) Static 
C) Economic 
D) Barrier 
A) Dynamic 
B) Static 
C) Economic 
D) Barrier

Question 4

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 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

The European Union is an example of regional integration.

Accepted Answer

A) True 
 B)False

Question 8

The EU organization that provides political leadership, drafts laws, and runs the daily programs of the EU is the ________.

Accepted Answer

A) European Commission 
B) Council of Ministers 
C) European Parliament 
D) European Central Bureaucracy 
A) European Commission 
B) Council of Ministers 
C) European Parliament 
D) European Central Bureaucracy

Question 9

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

Question 10

Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices.

Accepted Answer

A) True 
 B)False

Question 11

Under NAFTA, rules of origin ensure that ________.

Accepted Answer

A) only goods produced mostly within the region are eligible for liberal tariff conditions 
B) only American products are shipped to Canada and Mexico duty-free 
C) all members import products only from member nations 
D) all members have the same external and internal tariffs 
A) only goods produced mostly within the region are eligible for liberal tariff conditions 
B) only American products are shipped to Canada and Mexico duty-free 
C) all members import products only from member nations 
D) all members have the same external and internal tariffs

Question 12

NAFTA was primarily formed because the member nations have ________.

Accepted Answer

A) static and dynamic liberalization policies 
B) similarly sized economies and resources 
C) geographic proximity to each other 
D) competing interests with the EU 
A) static and dynamic liberalization policies 
B) similarly sized economies and resources 
C) geographic proximity to each other 
D) competing interests with the EU

Question 13

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 14

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 15

An NGO is ________.

Accepted Answer

A) an agency of the United Nations 
B) a private institution independent of a government 
C) any organization working on environmental issues 
D) an organization that is concerned only with workers' rights 
A) an agency of the United Nations 
B) a private institution independent of a government 
C) any organization working on environmental issues 
D) an organization that is concerned only with workers' rights

Question 16

Because the size of the market increases when trade barriers fall, companies can increase their production, which will result in lower costs per unit.This phenomenon is known as ________.

Accepted Answer

A) trade creation 
B) economies of scale 
C) diseconomies of scale 
D) increased competition 
A) trade creation 
B) economies of scale 
C) diseconomies of scale 
D) increased competition

Question 17

Trade shifting to countries within a regional trade agreement at the expense of trade with countries not in the agreement is called ________.

Accepted Answer

A) a dynamic effect 
B) trade creation 
C) trade diversion 
D) economy of scale 
A) a dynamic effect 
B) trade creation 
C) trade diversion 
D) economy of scale

Question 18

The European Union is an example of ________ integration.

Accepted Answer

A) regional 
B) relative 
C) global 
D) bilateral 
A) regional 
B) relative 
C) global 
D) bilateral

Question 19

Korman Industries is a foreign multinational that recently established operations in the European Union.What is the most likely advantage for Korman as a result?

Accepted Answer

A) Governance processes are streamlined because local governments have been eliminated. 
B) Market size is larger because of the elimination of internal tariff barriers. 
C) Differential external tariff barriers exist for product shipments. 
D) The EU uses English as its official language. 
A) Governance processes are streamlined because local governments have been eliminated. 
B) Market size is larger because of the elimination of internal tariff barriers. 
C) Differential external tariff barriers exist for product shipments. 
D) The EU uses English as its official language.

Question 20

Hudson Manufacturing is an MNE based in the United States with operations in Asia.The firm is considering expansion into the European Union.Executives at the firm are debating whether central Europe or Eastern Europe would be best for the firm.Which of the following best supports a decision to establish operations in Eastern Europe?

Accepted Answer

A) Hudson wants to implement a high-performance work system. 
B) Hudson plans to staff the foreign facility with local managers. 
C) Hudson wants to minimize costs by keeping wages low. 
D) Hudson recently lost money in a joint venture. 
A) Hudson wants to implement a high-performance work system. 
B) Hudson plans to staff the foreign facility with local managers. 
C) Hudson wants to minimize costs by keeping wages low. 
D) Hudson recently lost money in a joint venture.

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

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

________ effects of economic integration 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.

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

The Organization of Petroleum Exporting Countries ________.

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

The European Union is an example of regional integration.

The EU organization that provides political leadership, drafts laws, and runs the daily programs of the EU is the ________.

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

Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices.

Under NAFTA, rules of origin ensure that ________.

NAFTA was primarily formed because the member nations have ________.

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

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 ________.

An NGO is ________.

Because the size of the market increases when trade barriers fall, companies can increase their production, which will result in lower costs per unit.This phenomenon is known as ________.

Trade shifting to countries within a regional trade agreement at the expense of trade with countries not in the agreement is called ________.

The European Union is an example of ________ integration.

Korman Industries is a foreign multinational that recently established operations in the European Union.What is the most likely advantage for Korman as a result?

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

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

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

________ effects of economic integration 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.

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

The Organization of Petroleum Exporting Countries ________.

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

The European Union is an example of regional integration.

The EU organization that provides political leadership, drafts laws, and runs the daily programs of the EU is the ________.

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

Very few commodity agreements are successful in bringing together supplier and consumer countries to stabilize commodity prices.

Under NAFTA, rules of origin ensure that ________.

NAFTA was primarily formed because the member nations have ________.

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

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 ________.

An NGO is ________.

Because the size of the market increases when trade barriers fall, companies can increase their production, which will result in lower costs per unit.This phenomenon is known as ________.

Trade shifting to countries within a regional trade agreement at the expense of trade with countries not in the agreement is called ________.

The European Union is an example of ________ integration.

Korman Industries is a foreign multinational that recently established operations in the European Union.What is the most likely advantage for Korman as a result?

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