Question 1

OPEC is an example of a producer's cartel that is successful because of its ability to institute tariffs on oil exports.

Accepted Answer

A) True 
 B)False

Question 2

Identify and briefly compare the major regional trading groups in Latin America,Asia,and Africa.

Accepted Answer

a.The major trade group in South America

Question 3

Which of the following accurately identifies a difference between GATT and the WTO?

Accepted Answer

A)  GATT could enforce member compliance with agreements, but the WTO cannot. 
B)  At its inception, GATT had more member nations than the WTO currently has. 
C)  GATT withdrew the most-favored-nation clause, but the WTO reinstated it. 
D)  GATT rules did not cover trade in services, but the rules of the WTO do. 
A)  GATT could enforce member compliance with agreements, but the WTO cannot. 
B)  At its inception, GATT had more member nations than the WTO currently has. 
C)  GATT withdrew the most-favored-nation clause, but the WTO reinstated it. 
D)  GATT rules did not cover trade in services, but the rules of the WTO do.

Question 4

Which of the following recently threatened the future of the EU's common currency?

Accepted Answer

A)  refusal of the UK to use the euro 
B)  failed mergers and acquisitions 
C)  debt crisis in Greece 
D)  human rights issues 
A)  refusal of the UK to use the euro 
B)  failed mergers and acquisitions 
C)  debt crisis in Greece 
D)  human rights issues

Question 5

The shifting of resources from inefficient to efficient companies as trade barriers fall produces static effects.

Accepted Answer

A) True 
 B)False

Question 6

________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall.

Accepted Answer

A)  Dynamic 
B)  Static 
C)  Economic 
D)  Barrier 
A)  Dynamic 
B)  Static 
C)  Economic 
D)  Barrier

Question 7

Which of the following is Walmart's competitive advantage in Mexico?

Accepted Answer

A)  Walmart purchased all Mexican retail chains and eliminated competitors. 
B)  Walmart is able to transfer its "everyday low prices" concept to Mexico. 
C)  Walmart offers affordable, unique products for niche markets in Mexico. 
D)  Customers prefer to buy from American companies instead of Mexican companies. 
A)  Walmart purchased all Mexican retail chains and eliminated competitors. 
B)  Walmart is able to transfer its "everyday low prices" concept to Mexico. 
C)  Walmart offers affordable, unique products for niche markets in Mexico. 
D)  Customers prefer to buy from American companies instead of Mexican companies.

Question 8

According to regional content rules,at least ________ of the net cost of most products must come from the NAFTA region in order to get access to the tariff reductions of NAFTA.

Accepted Answer

A)  62.5% 
B)  50% 
C)  45% 
D)  40.5% 
A)  62.5% 
B)  50% 
C)  45% 
D)  40.5%

Question 9

________ 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 10

Which of the following are members of NAFTA?

Accepted Answer

A)  the United States, Canada, and Mexico 
B)  North America and Latin America 
C)  the United Kingdom, the United States, and Canada 
D)  the United States, Canada, and Brazil 
A)  the United States, Canada, and Mexico 
B)  North America and Latin America 
C)  the United Kingdom, the United States, and Canada 
D)  the United States, Canada, and Brazil

Question 11

Which of the following primarily triggered Toyota's investment in the European Union?

Accepted Answer

A)  Europeans demanded affordable, high quality cars from Japan. 
B)  A common currency gave Europeans more buying power. 
C)  The EU lowered trade barriers on foreign auto imports. 
D)  Japan and the EU formed a free trade agreement. 
A)  Europeans demanded affordable, high quality cars from Japan. 
B)  A common currency gave Europeans more buying power. 
C)  The EU lowered trade barriers on foreign auto imports. 
D)  Japan and the EU formed a free trade agreement.

Question 12

The shifting of trade to countries in a regional group at the expense of trade with countries not in the group is known as trade internalization.

Accepted Answer

A) True 
 B)False

Question 13

The European Union is an example of regional integration.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

Accepted Answer

A)  Trading groups have no influence on the size of the regional market. 
B)  Regional trading groups can define the rules under which companies must operate within that region. 
C)  Companies never need to change their organizational structure to take advantage of regional trading groups. 
D)  Regional trading groups have no influence on an MNE's strategy since they operate worldwide. 
A)  Trading groups have no influence on the size of the regional market. 
B)  Regional trading groups can define the rules under which companies must operate within that region. 
C)  Companies never need to change their organizational structure to take advantage of regional trading groups. 
D)  Regional trading groups have no influence on an MNE's strategy since they operate worldwide.

Question 15

Toyota has been successful in Europe by exporting cars to Europe as well as designing and manufacturing cars in Europe for the European market.

Accepted Answer

A) True 
 B)False

Question 16

The major trade groups in South America are CAN and MERCOSUR.

Accepted Answer

A) True 
 B)False

Question 17

Compared to the European Union,the North American Free Trade Agreement ________.

Accepted Answer

A)  has a stronger currency linkage due to the U.S. dollar 
B)  has more trade problems since it is a customs union 
C)  is significantly larger in population and total GNI 
D)  is slightly smaller in population and GDP 
A)  has a stronger currency linkage due to the U.S. dollar 
B)  has more trade problems since it is a customs union 
C)  is significantly larger in population and total GNI 
D)  is slightly smaller in population and GDP

Question 18

The goal of a free trade agreement is to abolish all tariffs among member countries.

Accepted Answer

A) True 
 B)False

Question 19

NAFTA is an example of a common market.

Accepted Answer

A) True 
 B)False

Question 20

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

OPEC is an example of a producer's cartel that is successful because of its ability to institute tariffs on oil exports.

Identify and briefly compare the major regional trading groups in Latin America,Asia,and Africa.

Which of the following accurately identifies a difference between GATT and the WTO?

Which of the following recently threatened the future of the EU's common currency?

The shifting of resources from inefficient to efficient companies as trade barriers fall produces static effects.

________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall.

Which of the following is Walmart's competitive advantage in Mexico?

According to regional content rules,at least ________ of the net cost of most products must come from the NAFTA region in order to get access to the tariff reductions of NAFTA.

________ 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.

Which of the following are members of NAFTA?

Which of the following primarily triggered Toyota's investment in the European Union?

The shifting of trade to countries in a regional group at the expense of trade with countries not in the group is known as trade internalization.

The European Union is an example of regional integration.

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

Toyota has been successful in Europe by exporting cars to Europe as well as designing and manufacturing cars in Europe for the European market.

The major trade groups in South America are CAN and MERCOSUR.

Compared to the European Union,the North American Free Trade Agreement ________.

The goal of a free trade agreement is to abolish all tariffs among member countries.

NAFTA is an example of a common market.

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

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

OPEC is an example of a producer's cartel that is successful because of its ability to institute tariffs on oil exports.

Identify and briefly compare the major regional trading groups in Latin America,Asia,and Africa.

Which of the following accurately identifies a difference between GATT and the WTO?

Which of the following recently threatened the future of the EU's common currency?

The shifting of resources from inefficient to efficient companies as trade barriers fall produces static effects.

________ effects of trade agreements are the shifting of resources from inefficient to efficient companies as trade barriers fall.

Which of the following is Walmart's competitive advantage in Mexico?

According to regional content rules,at least ________ of the net cost of most products must come from the NAFTA region in order to get access to the tariff reductions of NAFTA.

________ 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.

Which of the following are members of NAFTA?

Which of the following primarily triggered Toyota's investment in the European Union?

The shifting of trade to countries in a regional group at the expense of trade with countries not in the group is known as trade internalization.

The European Union is an example of regional integration.

Which of the following statements most accurately describes the relationship between trading groups and MNEs?

Toyota has been successful in Europe by exporting cars to Europe as well as designing and manufacturing cars in Europe for the European market.

The major trade groups in South America are CAN and MERCOSUR.

Compared to the European Union,the North American Free Trade Agreement ________.

The goal of a free trade agreement is to abolish all tariffs among member countries.

NAFTA is an example of a common market.

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

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