Question 1

Commodity agreements ________.

Accepted Answer

A)  were initially established to attempt to stabilize commodity prices 
B)  are effective in regulating the price of grains but not minerals 
C)  are effective in regulating the prices of both grains and minerals 
D)  were disbanded by the United Nations for being non-competitive 
A)  were initially established to attempt to stabilize commodity prices 
B)  are effective in regulating the price of grains but not minerals 
C)  are effective in regulating the prices of both grains and minerals 
D)  were disbanded by the United Nations for being non-competitive

Question 2

Since production has shifted to more efficient producers due to comparative advantage,consumers in Country X have had access to more goods at lower prices.Which of the following most likely exists?

Accepted Answer

A)  trade specialization 
B)  trade diversion 
C)  trade creation 
D)  trade internalization 
A)  trade specialization 
B)  trade diversion 
C)  trade creation 
D)  trade internalization

Question 3

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 4

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 5

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 6

A free trade agreement is likely to increase efficiency because of ________.

Accepted Answer

A)  decreased competition 
B)  increased competition 
C)  decreased trade diversion 
D)  decreased trade creation 
A)  decreased competition 
B)  increased competition 
C)  decreased trade diversion 
D)  decreased trade creation

Question 7

)Which of the following is the primary focus of the African Union (AU)?

Accepted Answer

A)  FDI influx 
B)  democracy 
C)  economic integration 
D)  intrazonal trade relations 
A)  FDI influx 
B)  democracy 
C)  economic integration 
D)  intrazonal trade relations

Question 8

NGOs must be recognized by the United Nations in order to do humanitarian work in developing countries.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

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 12

Most trade groups 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 13

What was the primary purpose of the formation of Sinergia?

Accepted Answer

A)  charge tariffs on Walmart imports 
B)  purchase Walmart's major suppliers 
C)  better compete with Walmart on price 
D)  include Walmart in the regional supply chain 
A)  charge tariffs on Walmart imports 
B)  purchase Walmart's major suppliers 
C)  better compete with Walmart on price 
D)  include Walmart in the regional supply chain

Question 14

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 15

The ________ is a preferential trade agreement that was organized in 1967 and comprises Brunei,Cambodia,Indonesia,Laos,Malaysia,Myanmar,the Philippines,Singapore,Thailand,and Vietnam.

Accepted Answer

A)  APEC 
B)  OAU 
C)  ASEAN 
D)  CAFTA 
A)  APEC 
B)  OAU 
C)  ASEAN 
D)  CAFTA

Question 16

When free mobility of factors of production is added to a common market,the result is a customs union.

Accepted Answer

A) True 
 B)False

Question 17

Under the WTO agreement,________.

Accepted Answer

A)  a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures 
B)  there is no dispute resolution mechanism except for trade involving environmental products 
C)  countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism 
D)  tariffs are permitted to be levied by developed countries against developing countries but not against each other 
A)  a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures 
B)  there is no dispute resolution mechanism except for trade involving environmental products 
C)  countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism 
D)  tariffs are permitted to be levied by developed countries against developing countries but not against each other

Question 18

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 19

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 20

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

Commodity agreements ________.

Since production has shifted to more efficient producers due to comparative advantage,consumers in Country X have had access to more goods at lower prices.Which of the following most likely exists?

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

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 ________.

Under NAFTA,rules of origin ensure that ________.

A free trade agreement is likely to increase efficiency because of ________.

)Which of the following is the primary focus of the African Union (AU)?

NGOs must be recognized by the United Nations in order to do humanitarian work in developing countries.

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

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 ________.

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.

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

What was the primary purpose of the formation of Sinergia?

The role of most commodity agreements now is to ________.

The ________ is a preferential trade agreement that was organized in 1967 and comprises Brunei,Cambodia,Indonesia,Laos,Malaysia,Myanmar,the Philippines,Singapore,Thailand,and Vietnam.

When free mobility of factors of production is added to a common market,the result is a customs union.

Under the WTO agreement,________.

Which of the following statements about the euro is true?

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

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

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

Commodity agreements ________.

Since production has shifted to more efficient producers due to comparative advantage,consumers in Country X have had access to more goods at lower prices.Which of the following most likely exists?

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

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 ________.

Under NAFTA,rules of origin ensure that ________.

A free trade agreement is likely to increase efficiency because of ________.

)Which of the following is the primary focus of the African Union (AU)?

NGOs must be recognized by the United Nations in order to do humanitarian work in developing countries.

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

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 ________.

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.

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

What was the primary purpose of the formation of Sinergia?

The role of most commodity agreements now is to ________.

The ________ is a preferential trade agreement that was organized in 1967 and comprises Brunei,Cambodia,Indonesia,Laos,Malaysia,Myanmar,the Philippines,Singapore,Thailand,and Vietnam.

When free mobility of factors of production is added to a common market,the result is a customs union.

Under the WTO agreement,________.

Which of the following statements about the euro is true?

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

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

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