Exam 2: Economic Environment

The U.S.government defines the multinational company for statistical purposes as a company that owns or controls ______________ or more of the voting securities,or The equivalent,of at least one foreign business enterprise.

An evolving trend in international economic activity is the formation of:

The ________________ volume of international trade in currencies exceeds the annual value of the trade in goods and services.

Which country consistently achieves the highest growth rates in GDP?

In the U.S. ,the Federal Trade Commission (FTC)is in charge of cases where entities are trying to mislead the public and commit fraud.

The Maastricht Treaty is a(n):

With which country does the U.S.have the largest trade deficit?

The new European currency,the euro,began its circulation in January ________.

The principle goal of a political union is that it:

The World Trade Organization (WTO)is a global institutional proponent of free trade.

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

The main operating principle of the General Agreements of Tariffs and Trade (GATT) is the concept of the Highly Favored Nation status (HFN).

The effect of a monetary union is that members:

__________________ refers to investment in foreign countries that are withdrawable at short notice (such as investment in foreign stocks and bonds).

FTAA stands for Free Trade Area of the Americas.

China's average growth rate in GDP has been over:

The United States was ranked number _______ on the 2005 Country Innovativeness Ranking.

A ___________________ is a formal agreement among two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner Countries.

The world marketplace is shrinking and changing.One of the vehicles that has been instrumental in this change is the General Agreement on Tariffs and Trade (GATT).Explain what GATT is and how it has affected international business.

The World Trade Organization was created in the eighth round of the GATT talks - called the ________________________ that lasted from 1986 to 1994.