Question 1

________ refers to buying goods or services from a supplier in another country.

Accepted Answer

A)  Franchising 
B)  Importing 
C)  Licensing 
D)  Partnering 
E)  Intermediating 
A)  Franchising 
B)  Importing 
C)  Licensing 
D)  Partnering 
E)  Intermediating

Question 2

The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies.

Accepted Answer

A)  balance payment 
B)  trading bloc 
C)  tariff rate 
D)  exchange rate 
E)  trade balance 
A)  balance payment 
B)  trading bloc 
C)  tariff rate 
D)  exchange rate 
E)  trade balance

Question 3

What is a trading bloc? Explain the working of any one trading bloc.

Accepted Answer

Trading blocs,or common markets,are regi

Question 4

Tariffs are politically motivated restrictions that revoke a company's normal trade relations status.

Accepted Answer

A) True 
 B)False

Question 5

On a vacation to Italy,you exchange $100 to get 70 Euros in return.This amount is significantly lower than what you received last year.This indicates that the ________.

Accepted Answer

A)  U.S. has a trade surplus against Italy 
B)  Euro has depreciated in value recently 
C)  U.S. dollar has weakened in the past year 
D)  U.S. has a trade deficit against Italy 
E)  balance of payment between U.S. and Europe is unfavorable 
A)  U.S. has a trade surplus against Italy 
B)  Euro has depreciated in value recently 
C)  U.S. dollar has weakened in the past year 
D)  U.S. has a trade deficit against Italy 
E)  balance of payment between U.S. and Europe is unfavorable

Question 6

________ are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices.

Accepted Answer

A)  Export subsidies 
B)  Embargoes 
C)  Tariffs 
D)  Sanctions 
E)  Export quotas 
A)  Export subsidies 
B)  Embargoes 
C)  Tariffs 
D)  Sanctions 
E)  Export quotas

Question 7

Compare and contrast the legal systems that exist in different parts of the world.

Accepted Answer

Differences in national legal systems ma

Question 8

________ limit the amount of particular goods that countries allow to be imported during a given year.

Accepted Answer

A)  Import subsidies 
B)  Embargoes 
C)  Import quotas 
D)  Import tariffs 
E)  Restrictive import standards 
A)  Import subsidies 
B)  Embargoes 
C)  Import quotas 
D)  Import tariffs 
E)  Restrictive import standards

Question 9

A country's balance of payment equals the ________.

Accepted Answer

A)  money spent on procuring services minus money spent on procuring goods 
B)  total flow of money into the country minus the total flow of money out of the country 
C)  gross domestic product of the country minus the gross national product of the country 
D)  money spent on producing services minus money spent on producing goods 
E)  money spent on buying goods minus money spent on producing goods 
A)  money spent on procuring services minus money spent on procuring goods 
B)  total flow of money into the country minus the total flow of money out of the country 
C)  gross domestic product of the country minus the gross national product of the country 
D)  money spent on producing services minus money spent on producing goods 
E)  money spent on buying goods minus money spent on producing goods

Question 10

Dumping ________.

Accepted Answer

A)  involves selling a product at a price lower than the cost of production 
B)  is a strategy used by firms to enter an industrialized nation 
C)  refers to the practice of selling products in small quantities 
D)  is a strategy used by organizations to enter a developed market 
E)  is typically prevented by providing export subsidies to local producers 
A)  involves selling a product at a price lower than the cost of production 
B)  is a strategy used by firms to enter an industrialized nation 
C)  refers to the practice of selling products in small quantities 
D)  is a strategy used by organizations to enter a developed market 
E)  is typically prevented by providing export subsidies to local producers

Question 11

A country that imports more than it exports would have a trade surplus.

Accepted Answer

A) True 
 B)False

Question 12

China imposes duties on automobiles imported to China.This is an example of a(n)________.

Accepted Answer

A)  import sanction 
B)  tariff 
C)  import quota 
D)  embargo 
E)  restrictive import standard 
A)  import sanction 
B)  tariff 
C)  import quota 
D)  embargo 
E)  restrictive import standard

Question 13

Which of the following is a major disadvantage of customizing products to suit local markets?

Accepted Answer

A)  Customization is likely to increase the costs and operational complexity. 
B)  Customized products attract more taxes and duties. 
C)  It reduces the diversity of a company's offerings. 
D)  Customization prevents companies from obtaining subsidies. 
E)  Customers' preferences will likely be ignored when using customization. 
A)  Customization is likely to increase the costs and operational complexity. 
B)  Customized products attract more taxes and duties. 
C)  It reduces the diversity of a company's offerings. 
D)  Customization prevents companies from obtaining subsidies. 
E)  Customers' preferences will likely be ignored when using customization.

Question 14

When the U.S.dollar is strong,U.S.exports will likely ________.

Accepted Answer

A)  become more competitive in foreign markets 
B)  cost more in other countries 
C)  be limited by the U.S. government 
D)  face embargoes in developing nations 
E)  be restricted by governments across the world 
A)  become more competitive in foreign markets 
B)  cost more in other countries 
C)  be limited by the U.S. government 
D)  face embargoes in developing nations 
E)  be restricted by governments across the world

Question 15

Which of the following arguments supports the idea of free trade?

Accepted Answer

A)  Dumping rules and tariffs should be stricter in developing countries. 
B)  International trade must take place without any interference. 
C)  Organizations should prefer local workers to foreign workers. 
D)  Local businesses should obtain help from governments. 
E)  Governments should subsidize exporters to promote global trade. 
A)  Dumping rules and tariffs should be stricter in developing countries. 
B)  International trade must take place without any interference. 
C)  Organizations should prefer local workers to foreign workers. 
D)  Local businesses should obtain help from governments. 
E)  Governments should subsidize exporters to promote global trade.

Question 16

Construct a trade plan that identifies the goods that the United States should produce and import based on the classic theory of comparative advantage.

Accepted Answer

The classic theory of comparative advant

Question 17

________ are politically motivated embargoes that revoke a country's normal trade relations status.

Accepted Answer

A)  Subsidies 
B)  Tariffs 
C)  Sanctions 
D)  Quotas 
E)  Restrictive standards 
A)  Subsidies 
B)  Tariffs 
C)  Sanctions 
D)  Quotas 
E)  Restrictive standards

Question 18

International travel would be more expensive for U.S.residents if the dollar is strong.

Accepted Answer

A) True 
 B)False

Question 19

The Asia Pacific Economic Cooperation Council's long-term goal is ________.

Accepted Answer

A)  imposing tariffs and quotas on imports to the land areas that surround the Pacific Ocean 
B)  protecting the pacific rim from the perils of international trade 
C)  liberalizing and simplifying trade and investment among member countries 
D)  preventing the trade of destructive goods such as arms and ammunition 
E)  preventing terror attacks and other organized crime in the land areas that surround the Pacific Ocean 
A)  imposing tariffs and quotas on imports to the land areas that surround the Pacific Ocean 
B)  protecting the pacific rim from the perils of international trade 
C)  liberalizing and simplifying trade and investment among member countries 
D)  preventing the trade of destructive goods such as arms and ammunition 
E)  preventing terror attacks and other organized crime in the land areas that surround the Pacific Ocean

Question 20

________ is a permanent forum for negotiating,implementing,and monitoring international trade procedures and for mediating trade disputes among its more than 150 member countries.

Accepted Answer

A)  International Monetary Fund 
B)  World Trade Organization 
C)  World Bank 
D)  European Union 
E)  International Labor Organization 
A)  International Monetary Fund 
B)  World Trade Organization 
C)  World Bank 
D)  European Union 
E)  International Labor Organization

________ refers to buying goods or services from a supplier in another country.

The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies.

What is a trading bloc? Explain the working of any one trading bloc.

Tariffs are politically motivated restrictions that revoke a company's normal trade relations status.

On a vacation to Italy,you exchange $100 to get 70 Euros in return.This amount is significantly lower than what you received last year.This indicates that the ________.

________ are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices.

Compare and contrast the legal systems that exist in different parts of the world.

________ limit the amount of particular goods that countries allow to be imported during a given year.

A country's balance of payment equals the ________.

Dumping ________.

A country that imports more than it exports would have a trade surplus.

China imposes duties on automobiles imported to China.This is an example of a(n)________.

Which of the following is a major disadvantage of customizing products to suit local markets?

When the U.S.dollar is strong,U.S.exports will likely ________.

Which of the following arguments supports the idea of free trade?

Construct a trade plan that identifies the goods that the United States should produce and import based on the classic theory of comparative advantage.

________ are politically motivated embargoes that revoke a country's normal trade relations status.

International travel would be more expensive for U.S.residents if the dollar is strong.

The Asia Pacific Economic Cooperation Council's long-term goal is ________.

________ is a permanent forum for negotiating,implementing,and monitoring international trade procedures and for mediating trade disputes among its more than 150 member countries.

Developing a Business Mindset

Understanding Basic Economics

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 3: The Global Marketplace

________ refers to buying goods or services from a supplier in another country.

The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies.

What is a trading bloc? Explain the working of any one trading bloc.

Tariffs are politically motivated restrictions that revoke a company's normal trade relations status.

On a vacation to Italy,you exchange $100 to get 70 Euros in return.This amount is significantly lower than what you received last year.This indicates that the ________.

________ are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices.

Compare and contrast the legal systems that exist in different parts of the world.

________ limit the amount of particular goods that countries allow to be imported during a given year.

A country's balance of payment equals the ________.

Dumping ________.

A country that imports more than it exports would have a trade surplus.

China imposes duties on automobiles imported to China.This is an example of a(n)________.

Which of the following is a major disadvantage of customizing products to suit local markets?

When the U.S.dollar is strong,U.S.exports will likely ________.

Which of the following arguments supports the idea of free trade?

Construct a trade plan that identifies the goods that the United States should produce and import based on the classic theory of comparative advantage.

________ are politically motivated embargoes that revoke a country's normal trade relations status.

International travel would be more expensive for U.S.residents if the dollar is strong.

The Asia Pacific Economic Cooperation Council's long-term goal is ________.

________ is a permanent forum for negotiating,implementing,and monitoring international trade procedures and for mediating trade disputes among its more than 150 member countries.

Developing a Business Mindset

Understanding Basic Economics

Business Ethics and Corporate Social Responsibility

Forms of Ownership

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters