Exam 5: International Environment

The balance of payments is the summary of a country's financial transactions with another country. Which of the following would you expect to see in such a summary?

Briefly explain how an exchange of merchandise can occur without involving cash or any other form of financial consideration.

In order to show a commercial on South Korean television, a company like Gillette must film the commercial using South Korean actors. What political consideration is most likely responsible for this legal requirement?

Spanish customers view toothpaste as a cosmetic while consumers in the Netherlands view it as a necessary part of daily hygiene and use three times as much as their Spanish counterparts. This example illustrates the importance of which of the following when marketing this product?

Since NAFTA came into effect in 1994, what has been the result?

Mines in South Africa produce diamonds and sell them to retailers in the United States. To South African miners, diamonds are an export.

An argument in favour of protective tariffs is the "infant-industry argument." Which of the following statements would best reflect that argument?

When a country sells its products in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products.

What is the most fundamental reason for the growth in world trade?

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising which of the following principles?

There are certain types of wood that are available only from trees grown in the Brazilian rain forest. What kind of advantage does this give Brazil over all other nations that might want to import these exotic woods?

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. Which of the following best describes the result of this behaviour?

Which of the following are goods and services that are made in a country and sold to other countries?

How many countries are in the European Union?

The International Monetary Fund (IMF) was created to promote trade through financial cooperation by working to eliminate trade barriers.

Which of the following is a tax levied by a nation on imported goods?

Which of the following move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered?

Which of the following terms refers to a total prohibition against importing certain products?

Latvia had a favourable balance of trade last year when it exported $2.3 billion and imported $3.9 billion.

There are arguments for and against the use of tariffs. What are the most likely reasons that a cattle-producing country like Argentina might have a tariff on the importation of beef?