Question 1

What are the rules of origin and regional content provisions of NAFTA?

Accepted Answer

Because NAFTA is a free trade agreement and not a customs union,each country sets its own tariffs for the rest of the world.Rules of origin ensure that only goods that have been the subject of substantial economic activity within the free trade area are eligible for the more liberal tariff conditions created by NAFTA.According to regional content rules,at least 50 percent of the net cost of most products must come from the NAFTA region.The exceptions are 55 percent for footwear,62.5 percent for passenger automobiles and light trucks and the engines and transmissions for such vehicles,and 60 percent for other vehicles and automotive parts.

Question 2

The goal of a ________ is to abolish all tariffs among member countries.

Accepted Answer

A)  customs union 
B)  common market 
C)  free trade agreement 
D)  common internal tariff 
A)  customs union 
B)  common market 
C)  free trade agreement 
D)  common internal tariff C

Question 3

The EU organization that ensures consistent interpretation and application of EU treaties is the ________.

Accepted Answer

A)  European Commission 
B)  Council of Ministers 
C)  Court of Justice 
D)  Council of Treaties and Laws 
A)  European Commission 
B)  Council of Ministers 
C)  Court of Justice 
D)  Council of Treaties and Laws C

Question 4

As companies expand internationally,they must change their organizational structure and operating strategies to take advantage of regional trading groups.

Accepted Answer

A) True 
 B)False

Question 5

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 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 ________ integration.

Accepted Answer

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

Question 8

Hudson Manufacturing is an MNE based in the U.S.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.

Question 9

Regional integration is better known as global integration through the World Trade Organization.

Accepted Answer

A) True 
 B)False

Question 10

The most important rationales for NAFTA are geographic proximity and trading importance.

Accepted Answer

A) True 
 B)False

Question 11

Global integration occurs as countries from all over the world decide to cooperate through the ________.

Accepted Answer

A)  EU 
B)  NAFTA agreement 
C)  WTO 
D)  CARICOM 
A)  EU 
B)  NAFTA agreement 
C)  WTO 
D)  CARICOM

Question 12

Hudson Manufacturing is an MNE based in the U.S.with operations in Asia.The firm is considering expansion into the European Union.Which of the following questions is most relevant to the decision?

Accepted Answer

A)  What is the primary language of most workers? 
B)  Which country has the best production location? 
C)  Which currency has the most favorable value of the euro? 
D)  Which country has the lowest tariffs for manufactured products? 
A)  What is the primary language of most workers? 
B)  Which country has the best production location? 
C)  Which currency has the most favorable value of the euro? 
D)  Which country has the lowest tariffs for manufactured products?

Question 13

Of the following possibilities,the European Union is best described as a ________.

Accepted Answer

A)  customs union 
B)  domestic organization 
C)  global bargaining unit 
D)  common language agreement 
A)  customs union 
B)  domestic organization 
C)  global bargaining unit 
D)  common language agreement

Question 14

One of the reasons that neighboring countries tend to ally is similar consumer tastes.

Accepted Answer

A) True 
 B)False

Question 15

Most trade groups contain countries in the same area of the world,even though neighboring countries usually lack a common history and interests.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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 19

The ________ clause embodied the fundamental principle of GATT-trade without discrimination.

Accepted Answer

A)  most-favored-nation 
B)  nontariff barriers 
C)  free rider 
D)  normal trade relations 
A)  most-favored-nation 
B)  nontariff barriers 
C)  free rider 
D)  normal trade relations

Question 20

An NGO is a private institution independent from the government.

Accepted Answer

A) True 
 B)False

What are the rules of origin and regional content provisions of NAFTA?

The goal of a ________ is to abolish all tariffs among member countries.

The EU organization that ensures consistent interpretation and application of EU treaties is the ________.

As companies expand internationally,they must change their organizational structure and operating strategies to take advantage of regional trading groups.

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

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

The European Union is an example of ________ integration.

Regional integration is better known as global integration through the World Trade Organization.

The most important rationales for NAFTA are geographic proximity and trading importance.

Global integration occurs as countries from all over the world decide to cooperate through the ________.

Hudson Manufacturing is an MNE based in the U.S.with operations in Asia.The firm is considering expansion into the European Union.Which of the following questions is most relevant to the decision?

Of the following possibilities,the European Union is best described as a ________.

One of the reasons that neighboring countries tend to ally is similar consumer tastes.

Most trade groups contain countries in the same area of the world,even though neighboring countries usually lack a common history and interests.

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

Which of the following is a unique provision of NAFTA?

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

The ________ clause embodied the fundamental principle of GATT-trade without discrimination.

An NGO is a private institution independent from the government.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

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 7: Cross-National Cooperation and Agreements

What are the rules of origin and regional content provisions of NAFTA?

The goal of a ________ is to abolish all tariffs among member countries.

The EU organization that ensures consistent interpretation and application of EU treaties is the ________.

As companies expand internationally,they must change their organizational structure and operating strategies to take advantage of regional trading groups.

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

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

The European Union is an example of ________ integration.

Regional integration is better known as global integration through the World Trade Organization.

The most important rationales for NAFTA are geographic proximity and trading importance.

Global integration occurs as countries from all over the world decide to cooperate through the ________.

Hudson Manufacturing is an MNE based in the U.S.with operations in Asia.The firm is considering expansion into the European Union.Which of the following questions is most relevant to the decision?

Of the following possibilities,the European Union is best described as a ________.

One of the reasons that neighboring countries tend to ally is similar consumer tastes.

Most trade groups contain countries in the same area of the world,even though neighboring countries usually lack a common history and interests.

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

Which of the following is a unique provision of NAFTA?

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

The ________ clause embodied the fundamental principle of GATT-trade without discrimination.

An NGO is a private institution independent from the government.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

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