Question 1

A balance of payments deficit occurs when _____.

Accepted Answer

A)  the net inflow of money from abroad exceeds the net outflows of money to other countries 
B)  imports exceed exports 
C)  the net outflow of money from a country exceeds the net inflow of money from abroad 
D)  exports exceed imports 
A)  the net inflow of money from abroad exceeds the net outflows of money to other countries 
B)  imports exceed exports 
C)  the net outflow of money from a country exceeds the net inflow of money from abroad 
D)  exports exceed imports

Question 2

Describe the role of the European Union (EU).

Accepted Answer

he EU's goals include promoting economic

Question 3

Discuss why the World Trade Organization (WTO) has been the object of controversy in recent years. What concerns have been expressed?

Accepted Answer

The WTO has become increasingly controve

Question 4

Explain the advantages and disadvantages of imposing trade restrictions.

Accepted Answer

Trade restrictions may limit consumer ch

Question 5

Due to its highly educated workforce and low labor costs, India has a comparative advantage in software development.

Accepted Answer

A) True 
 B)False

Question 6

Identify and describe the major types of obstacles confronting international trade.

Accepted Answer

The major types of obstacles confronting

Question 7

Why have U.S. firms become increasingly focused on international business?

Accepted Answer

In the past, most American firms felt th

Question 8

All of the following constitute a country's infrastructure EXCEPT _____.

Accepted Answer

A)  political climate 
B)  communication 
C)  energy facilities 
D)  Transportation 
A)  political climate 
B)  communication 
C)  energy facilities 
D)  Transportation

Question 9

An American company that makes plastic garden furniture wants to market its products in a foreign country that has a high tariff barrier against imported plastic goods. One way the company can get around this problem is to _____.

Accepted Answer

A)  hire an export management team 
B)  violate the Foreign Corrupt Practices Act 
C)  enter into a licensing agreement with companies within the foreign country to produce the furniture there 
D)  submit a complaint to the U.S. Department of Commerce 
A)  hire an export management team 
B)  violate the Foreign Corrupt Practices Act 
C)  enter into a licensing agreement with companies within the foreign country to produce the furniture there 
D)  submit a complaint to the U.S. Department of Commerce

Question 10

The United States has a trade surplus in which of the following items?

Accepted Answer

A)  Oil 
B)  Textiles 
C)  technology products 
D)  services 
A)  Oil 
B)  Textiles 
C)  technology products 
D)  services

Question 11

Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area. Speedy Lube is involved in _____.

Accepted Answer

A)  foreign licensing 
B)  countertrade 
C)  international production 
D)  direct exporting 
A)  foreign licensing 
B)  countertrade 
C)  international production 
D)  direct exporting

Question 12

Many developing nations have lower per capita incomes than highly developed countries. This fact _____.

Accepted Answer

A)  indicates that they represent an insignificant market for most products 
B)  means that the developing nations are unlikely to experience much economic growth 
C)  does not mean there is little opportunity for sales. Their sheer numbers may still represent significant and growing markets. 
D)  means that they are only likely to purchase low-tech merchandise 
A)  indicates that they represent an insignificant market for most products 
B)  means that the developing nations are unlikely to experience much economic growth 
C)  does not mean there is little opportunity for sales. Their sheer numbers may still represent significant and growing markets. 
D)  means that they are only likely to purchase low-tech merchandise

Question 13

U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.

Accepted Answer

A) True 
 B)False

Question 14

A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically. To give the domestic industry a better chance to operate profitably, the government restricts the number of these appliances that can be imported by applying a(n) _____.

Accepted Answer

A)  quota 
B)  embargo 
C)  protective tariff 
D)  revenue tariff 
A)  quota 
B)  embargo 
C)  protective tariff 
D)  revenue tariff

Question 15

The sale by Toyota of its Camry model throughout the world is an example of offshoring.

Accepted Answer

A) True 
 B)False

Question 16

A trade deficit exists when a nation's exports exceed its imports.

Accepted Answer

A) True 
 B)False

Question 17

MATCHING
Complete the following using the terms listed.
-The _____ was created to promote trade through financial cooperation, while eliminating barriers in the process.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) Dumping 
E) Imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)Devaluation
K)exchange rate
L)absolute advantage
M)global business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage 
A) offshoring 
B) balance of trade 
C) joint venture 
D) Dumping 
E) Imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)Devaluation
K)exchange rate
L)absolute advantage
M)global business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage

Question 18

The EU bans imports of any U.S. agricultural product that has been treated with growth hormones. In response, the United States triples tariffs on imports of selected European products. This would be an example of a protective tariff.

Accepted Answer

A) True 
 B)False

Question 19

MATCHING
Complete the following using the terms listed.
-A limit on the amount of a particular product that a country can import during a specified time period is a(n) _____.

Accepted Answer

A) offshoring 
B) balance of trade 
C) joint venture 
D) Dumping 
E) Imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)Devaluation
K)exchange rate
L)absolute advantage
M)global business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage 
A) offshoring 
B) balance of trade 
C) joint venture 
D) Dumping 
E) Imports
F)tariff
G)International Monetary Fund
H)World Trade Organization
I)free trade area
J)Devaluation
K)exchange rate
L)absolute advantage
M)global business strategy
N)quota
O)multidomestic strategy
P)balance of payments
Q)comparative advantage

Question 20

If a country that produces wine enacts a tariff on imported wine to match the country's domestic wine price, this would be an example of a protective tariff.

Accepted Answer

A) True 
 B)False

A balance of payments deficit occurs when _____.

Describe the role of the European Union (EU).

Discuss why the World Trade Organization (WTO) has been the object of controversy in recent years. What concerns have been expressed?

Explain the advantages and disadvantages of imposing trade restrictions.

Due to its highly educated workforce and low labor costs, India has a comparative advantage in software development.

Identify and describe the major types of obstacles confronting international trade.

Why have U.S. firms become increasingly focused on international business?

All of the following constitute a country's infrastructure EXCEPT _____.

An American company that makes plastic garden furniture wants to market its products in a foreign country that has a high tariff barrier against imported plastic goods. One way the company can get around this problem is to _____.

The United States has a trade surplus in which of the following items?

Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area. Speedy Lube is involved in _____.

Many developing nations have lower per capita incomes than highly developed countries. This fact _____.

U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.

A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically. To give the domestic industry a better chance to operate profitably, the government restricts the number of these appliances that can be imported by applying a(n) _____.

The sale by Toyota of its Camry model throughout the world is an example of offshoring.

A trade deficit exists when a nation's exports exceed its imports.

MATCHING Complete the following using the terms listed. -The _____ was created to promote trade through financial cooperation, while eliminating barriers in the process.

The EU bans imports of any U.S. agricultural product that has been treated with growth hormones. In response, the United States triples tariffs on imports of selected European products. This would be an example of a protective tariff.

MATCHING Complete the following using the terms listed. -A limit on the amount of a particular product that a country can import during a specified time period is a(n) _____.

If a country that produces wine enacts a tariff on imported wine to match the country's domestic wine price, this would be an example of a protective tariff.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters

Exam 4: Competing in World Markets

A balance of payments deficit occurs when _____.

Describe the role of the European Union (EU).

Discuss why the World Trade Organization (WTO) has been the object of controversy in recent years. What concerns have been expressed?

Explain the advantages and disadvantages of imposing trade restrictions.

Due to its highly educated workforce and low labor costs, India has a comparative advantage in software development.

Identify and describe the major types of obstacles confronting international trade.

Why have U.S. firms become increasingly focused on international business?

All of the following constitute a country's infrastructure EXCEPT _____.

An American company that makes plastic garden furniture wants to market its products in a foreign country that has a high tariff barrier against imported plastic goods. One way the company can get around this problem is to _____.

The United States has a trade surplus in which of the following items?

Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area. Speedy Lube is involved in _____.

Many developing nations have lower per capita incomes than highly developed countries. This fact _____.

U.S. sugar producers welcomed the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) because relaxed trade rules with Central America drove prices higher.

A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically. To give the domestic industry a better chance to operate profitably, the government restricts the number of these appliances that can be imported by applying a(n) _____.

The sale by Toyota of its Camry model throughout the world is an example of offshoring.

A trade deficit exists when a nation's exports exceed its imports.

MATCHING Complete the following using the terms listed. -The _____ was created to promote trade through financial cooperation, while eliminating barriers in the process.

The EU bans imports of any U.S. agricultural product that has been treated with growth hormones. In response, the United States triples tariffs on imports of selected European products. This would be an example of a protective tariff.

MATCHING Complete the following using the terms listed. -A limit on the amount of a particular product that a country can import during a specified time period is a(n) _____.

If a country that produces wine enacts a tariff on imported wine to match the country's domestic wine price, this would be an example of a protective tariff.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Financial Management

Filters