Question 1

The infant industry argument is part of the socio-economic category of managed trade.

Accepted Answer

A) True 
 B)False

Question 2

Regulations requiring that a certain percentage of the value of import be sourced domestically refers to _______.

Accepted Answer

domestic c

Question 3

Scenario - The Audrey Firm
The Audrey Firm is an international trade consulting firm currently providing its services in eight foreign nations.The primary goal of this company is to prevent trade missteps from taking place between foreign nations conducting business with each other.The participating nations prefer to seek counsel with this firm before any of their actions result in major international involvement or World Trade Organization intervention.
In the past,the Audrey Firm's team of experts has handled international situations having the potential to create serious unrest between neighboring countries.Their guidance and expertise have been successful in keeping trade operating freely in several areas of the globe.The Audrey Firm is receiving an award for their exemplary service later this year in Washington D.C.
-The agreement reached between Power Trip and the two foreign nations where they would sell components to Power Trip in exchange for allowing sales of its products within their borders most closely resembles which one of the following?

Accepted Answer

A)  Subsidizing exports 
B)  Establishing a generalized system of preferences 
C)  Development of a domestic content provision 
D)  Establishment of a quantitative restriction (QR) 
E)  Engagement in countertrade 
A)  Subsidizing exports 
B)  Establishing a generalized system of preferences 
C)  Development of a domestic content provision 
D)  Establishment of a quantitative restriction (QR) 
E)  Engagement in countertrade

Question 4

The sale and purchase of goods and services across national borders is known as _____.

Accepted Answer

A)  exporting 
B)  entrepreneurship 
C)  angel investing 
D)  importing 
E)  trade 
A)  exporting 
B)  entrepreneurship 
C)  angel investing 
D)  importing 
E)  trade

Question 5

Factor price equalization theory,states that when factors are allowed to move freely among trading nations,efficiency increases,which leads to superior allocation of production of goods and services among countries.

Accepted Answer

A) True 
 B)False

Question 6

According to Porter's "diamond" model,the success or competitive advantage of a nation at the global stage depends upon the interaction of all of the following EXCEPT

Accepted Answer

A)  firm strategy,structure,and rivalry. 
B)  related and supporting industries. 
C)  demand conditions. 
D)  a conservative political structure. 
E)  factor conditions. 
A)  firm strategy,structure,and rivalry. 
B)  related and supporting industries. 
C)  demand conditions. 
D)  a conservative political structure. 
E)  factor conditions.

Question 7

Porter exemplifies China as a powerhouse for consumer electronics because of the quality and quantity of its engineers,and the ability and willingness of Chinese consumers to try out new electronic products that are perfected and later exported.

Accepted Answer

A) True 
 B)False

Question 8

Both the theory of comparative advantage in production and the H-O theory provide ______ as a basis for international trade.

Accepted Answer

A)  factor endowments 
B)  trade surplus theory 
C)  foreign direct investment 
D)  managed trade theory 
E)  trade deficit theory 
A)  factor endowments 
B)  trade surplus theory 
C)  foreign direct investment 
D)  managed trade theory 
E)  trade deficit theory

Question 9

Scenario - The Audrey Firm
The Audrey Firm is an international trade consulting firm currently providing its services in eight foreign nations.The primary goal of this company is to prevent trade missteps from taking place between foreign nations conducting business with each other.The participating nations prefer to seek counsel with this firm before any of their actions result in major international involvement or World Trade Organization intervention.
In the past,the Audrey Firm's team of experts has handled international situations having the potential to create serious unrest between neighboring countries.Their guidance and expertise have been successful in keeping trade operating freely in several areas of the globe.The Audrey Firm is receiving an award for their exemplary service later this year in Washington D.C.
-The clients of the Audrey Firm use various techniques to restrict imports to their countries.Which one of the following assigns a fixed amount of tax for every physical unit imported?

Accepted Answer

A)  Import quota 
B)  Voluntary export restraint 
C)  Ad valorem tariff 
D)  Specific tariff 
E)  Domestic content provision 
A)  Import quota 
B)  Voluntary export restraint 
C)  Ad valorem tariff 
D)  Specific tariff 
E)  Domestic content provision

Question 10

Until January 1,2012,the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per gallon because of the $0.54 per gallon tariff imposed by the U.S.government on ethanol imports.This is an example of a(n)_____ tariff.

Accepted Answer

A)  custom 
B)  ad valorem 
C)  specific 
D)  preferential 
E)  generalized 
A)  custom 
B)  ad valorem 
C)  specific 
D)  preferential 
E)  generalized

Question 11

Which would a mercantilist value the MOST?

Accepted Answer

A)  labor 
B)  a trade surplus 
C)  absolute advantage 
D)  a trade deficit 
E)  factor endowments 
A)  labor 
B)  a trade surplus 
C)  absolute advantage 
D)  a trade deficit 
E)  factor endowments

Question 12

______ refers to a negative tariff or tax aimed at boosting exports.

Accepted Answer

The answer of ______ refers to a negative tariff or...

Question 13

Which of the following was NOT one of the top exporting nations in 2012?

Accepted Answer

A)  China 
B)  Germany 
C)  Japan 
D)  the United Kingdom 
E)  Hong Kong 
A)  China 
B)  Germany 
C)  Japan 
D)  the United Kingdom 
E)  Hong Kong

Question 14

Developed countries often resort to managed trade for reasons of unethical labor practices and violation of basic human rights.

Accepted Answer

A) True 
 B)False

Question 15

Assume that because of soil and climatic conditions,Brazil is more efficient in the production of coffee than the United States.At the same time,the United States is more efficient in the production of apples than Brazil.Each of these countries can be said to have a(n)_____.

Accepted Answer

A)  absolute advantage 
B)  comparative advantage 
C)  factor endowment destruction in land 
D)  bartering disadvantage 
E)  mercantile disadvantage 
A)  absolute advantage 
B)  comparative advantage 
C)  factor endowment destruction in land 
D)  bartering disadvantage 
E)  mercantile disadvantage

Question 16

Singapore,a regional center for global companies,continues to attract sizable amounts of foreign investment given its strategic location,world-class infrastructure,and productive workforce.

Accepted Answer

A) True 
 B)False

Question 17

Of the following statements about mercantilism,which is NOT true?

Accepted Answer

A)  It was practiced as Europe emerged from the feudal systems of the Middle Ages and moved toward nationalism 
B)  Mercantilists believed that for a nation to become wealthy,that nation must export as much as possible and,in turn,import as little as possible. 
C)  During the time it was practiced,wealth was largely determined by the amount of land one had access to. 
D)  Mercantilists did not want,or care,to see the big picture. 
E)  Mercantilists encouraged their people to produce large families. 
A)  It was practiced as Europe emerged from the feudal systems of the Middle Ages and moved toward nationalism 
B)  Mercantilists believed that for a nation to become wealthy,that nation must export as much as possible and,in turn,import as little as possible. 
C)  During the time it was practiced,wealth was largely determined by the amount of land one had access to. 
D)  Mercantilists did not want,or care,to see the big picture. 
E)  Mercantilists encouraged their people to produce large families.

Question 18

The _______ objective is to sacrifice some economic efficiency for the greater good of the country in terms of national security,protection of critical industries,and international commerce.

Accepted Answer

The answer of The _______ objective is to sacrifice some...

Question 19

How does Porter's model of national competitive advantage differ from the Heckscher-Ohlin theory?

Accepted Answer

A)  It looks more closely at the quality of factor endowments. 
B)  It examines only a country's imports. 
C)  It examines only a country's exports. 
D)  It does not encourage trade. 
E)  It does not explain why there are "winners" and "losers" in international trade. 
A)  It looks more closely at the quality of factor endowments. 
B)  It examines only a country's imports. 
C)  It examines only a country's exports. 
D)  It does not encourage trade. 
E)  It does not explain why there are "winners" and "losers" in international trade.

Question 20

Scenario - The Audrey Firm
The Audrey Firm is an international trade consulting firm currently providing its services in eight foreign nations.The primary goal of this company is to prevent trade missteps from taking place between foreign nations conducting business with each other.The participating nations prefer to seek counsel with this firm before any of their actions result in major international involvement or World Trade Organization intervention.
In the past,the Audrey Firm's team of experts has handled international situations having the potential to create serious unrest between neighboring countries.Their guidance and expertise have been successful in keeping trade operating freely in several areas of the globe.The Audrey Firm is receiving an award for their exemplary service later this year in Washington D.C.
-Which one of the following would be the least restrictive way in which India and China could impede sales of Power Trip's products within their borders despite the agreement to allow free operations of the company within their nations' boundaries?

Accepted Answer

A)  Place a tariff on the products 
B)  Establish an ad valorem tariff for the products 
C)  Establish a generalized system of preferences (GSP) 
D)  Establish a very high specific tariff 
E)  Establish stringent custom duties 
A)  Place a tariff on the products 
B)  Establish an ad valorem tariff for the products 
C)  Establish a generalized system of preferences (GSP) 
D)  Establish a very high specific tariff 
E)  Establish stringent custom duties

The infant industry argument is part of the socio-economic category of managed trade.

Regulations requiring that a certain percentage of the value of import be sourced domestically refers to _______.

The sale and purchase of goods and services across national borders is known as _____.

Factor price equalization theory,states that when factors are allowed to move freely among trading nations,efficiency increases,which leads to superior allocation of production of goods and services among countries.

According to Porter's "diamond" model,the success or competitive advantage of a nation at the global stage depends upon the interaction of all of the following EXCEPT

Porter exemplifies China as a powerhouse for consumer electronics because of the quality and quantity of its engineers,and the ability and willingness of Chinese consumers to try out new electronic products that are perfected and later exported.

Both the theory of comparative advantage in production and the H-O theory provide ______ as a basis for international trade.

Until January 1,2012,the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per gallon because of the $0.54 per gallon tariff imposed by the U.S.government on ethanol imports.This is an example of a(n)_____ tariff.

Which would a mercantilist value the MOST?

______ refers to a negative tariff or tax aimed at boosting exports.

Which of the following was NOT one of the top exporting nations in 2012?

Developed countries often resort to managed trade for reasons of unethical labor practices and violation of basic human rights.

Assume that because of soil and climatic conditions,Brazil is more efficient in the production of coffee than the United States.At the same time,the United States is more efficient in the production of apples than Brazil.Each of these countries can be said to have a(n)_____.

Singapore,a regional center for global companies,continues to attract sizable amounts of foreign investment given its strategic location,world-class infrastructure,and productive workforce.

Of the following statements about mercantilism,which is NOT true?

The _______ objective is to sacrifice some economic efficiency for the greater good of the country in terms of national security,protection of critical industries,and international commerce.

How does Porter's model of national competitive advantage differ from the Heckscher-Ohlin theory?

The Rise of Globalization

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal,economic and Political Environment of Global Business

Entry Strategies in Global Business

Control of Global Business

Corruption and Ethics in Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Global Accounting and Taxation

Filters

Exam 2: The Evolution of International Business

The infant industry argument is part of the socio-economic category of managed trade.

Regulations requiring that a certain percentage of the value of import be sourced domestically refers to _______.

The sale and purchase of goods and services across national borders is known as _____.

Factor price equalization theory,states that when factors are allowed to move freely among trading nations,efficiency increases,which leads to superior allocation of production of goods and services among countries.

According to Porter's "diamond" model,the success or competitive advantage of a nation at the global stage depends upon the interaction of all of the following EXCEPT

Porter exemplifies China as a powerhouse for consumer electronics because of the quality and quantity of its engineers,and the ability and willingness of Chinese consumers to try out new electronic products that are perfected and later exported.

Both the theory of comparative advantage in production and the H-O theory provide ______ as a basis for international trade.

Until January 1,2012,the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per gallon because of the $0.54 per gallon tariff imposed by the U.S.government on ethanol imports.This is an example of a(n)_____ tariff.

Which would a mercantilist value the MOST?

______ refers to a negative tariff or tax aimed at boosting exports.

Which of the following was NOT one of the top exporting nations in 2012?

Developed countries often resort to managed trade for reasons of unethical labor practices and violation of basic human rights.

Assume that because of soil and climatic conditions,Brazil is more efficient in the production of coffee than the United States.At the same time,the United States is more efficient in the production of apples than Brazil.Each of these countries can be said to have a(n)_____.

Singapore,a regional center for global companies,continues to attract sizable amounts of foreign investment given its strategic location,world-class infrastructure,and productive workforce.

Of the following statements about mercantilism,which is NOT true?

The _______ objective is to sacrifice some economic efficiency for the greater good of the country in terms of national security,protection of critical industries,and international commerce.

How does Porter's model of national competitive advantage differ from the Heckscher-Ohlin theory?

The Rise of Globalization

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal,economic and Political Environment of Global Business

Entry Strategies in Global Business

Control of Global Business

Corruption and Ethics in Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Global Accounting and Taxation

Filters