Question 1

International trade has not played a very big role in world history because trade between countries has historically been low, and governments have a tendency to separate trade from political issues.

Accepted Answer

A) True 
 B)False

Question 2

European feudalism was initially set up as an alliance between farmers and organizations to protect them from invaders, thus protecting the harvests.

Accepted Answer

A) True 
 B)False

Question 3

When the Export-Import Bank of the United States gives loans that are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates, these loans are known as:

Accepted Answer

A)  commercial state loans. 
B)  mixed aid credits. 
C)  import/export fluctuations. 
D)  partial loans.

Question 4

Which of the following is true about the trade deficit in the United States?

Accepted Answer

A)  Since 1975, the U.S. trade deficit has been continuous. 
B)  By law, the U.S. cannot have a trade deficit. 
C)  Because of its position in a free trade zone, the U.S. does not have a trade deficit. 
D)  By executive order, the President is the only person who can control this deficit.

Question 5

When the charter for the International Trade Organization was signed in 1948, it set forth a series of agreements to include international commercial policies, domestic business practices, and what other agreements?

Accepted Answer

A)  Unilateral veto power by the Soviet Union, China, and the United States 
B)  An inter-governmental agreement allowing the U.S. to administer the ITO 
C)  A closed market for all electronic components 
D)  Commodity agreement, economic development, and international investment

Question 6

When a company expands its market by offering its products to international customers, it can produce more of its products and do so more efficiently, thus reducing the overall cost of each individual unit. What is this called?

Accepted Answer

A)  Over saturation 
B)  Stagnation 
C)  Economy of scale 
D)  Post production providence

Question 7

The WTO (World Transport Organization) is the world's leading authority on settling transportation disputes between shippers of products and the countries which receive these goods.

Accepted Answer

A) True 
 B)False

Question 8

Policymakers will be sufficiently responsive in setting international trade policy objectives that increase opportunities for firms and choices for consumers when:

Accepted Answer

A)  the voices of retailers, consumers, wholesalers, and manufacturers are heard. 
B)  all nations adopt the IMF treaty. 
C)  the reconstruction of branded Europe is concluded. 
D)  there is agreement between the British and Americans over salt prices.

Question 9

The government retains a vested interest in banning certain goods in order to protect public morals.

Accepted Answer

A) True 
 B)False

Question 10

The international environment is relatively static, and there is not much change in any given year.

Accepted Answer

A) True 
 B)False

Question 11

In order for negotiations between countries to be long-lasting, policymakers must:

Accepted Answer

A)  appoint taxing authority to an outside third non-exclusive country. 
B)  situate the trading bloc amongst similar aid. 
C)  trade off short-term achievements for long term goals. 
D)  implement profit taking in the short term.

Question 12

The Roman Empire became one of the greatest world powers through which of the following means?

Accepted Answer

A)  Asking other countries to join them in their empire 
B)  Sending out feudal lords to marry into the extended families of neighboring lands 
C)  Encouraging international business activities 
D)  Taxing the poor

Question 13

Which organization has been called "a remarkable success story of postwar international organization that was never intended to become one"?

Accepted Answer

A)  GATT 
B)  WTO 
C)  IMF 
D)  UN

Question 14

Trade promotion authority was given by Congress to:

Accepted Answer

A)  foreign governments. 
B)  the channel captains sourcing the agreement. 
C)  functional intermediaries. 
D)  the executive branch, represented by the President of the United States.

Question 15

The charter for the International Trade Organization (ITO) was signed in Havana, Cuba in 1948.

Accepted Answer

A) True 
 B)False

Question 16

In German history, a customs union was established to eliminate tariff barriers. The ultimate goal envision was the completely free movement of capital, services, and people across national borders and the joint development of common international policies. What is the name of this regional integration union?

Accepted Answer

A)  GATT 
B)  Der Union 
C)  Zollverien 
D)  Frankfurter Commons

Question 17

NAFTA, Mercosur, and GCC represent:

Accepted Answer

A)  names of Soviet rockets that have made trips to the moon. 
B)  formal titles for the ministers of trade in South American countries. 
C)  the infrastructure of governmental courts related to trade. 
D)  examples of regional trade alliances between nations.

Exam 2: Trade Institutions and Trade Policy

International trade has not played a very big role in world history because trade between countries has historically been low, and governments have a tendency to separate trade from political issues.

European feudalism was initially set up as an alliance between farmers and organizations to protect them from invaders, thus protecting the harvests.

When the Export-Import Bank of the United States gives loans that are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates, these loans are known as:

Which of the following is true about the trade deficit in the United States?

When the charter for the International Trade Organization was signed in 1948, it set forth a series of agreements to include international commercial policies, domestic business practices, and what other agreements?

When a company expands its market by offering its products to international customers, it can produce more of its products and do so more efficiently, thus reducing the overall cost of each individual unit. What is this called?

The WTO (World Transport Organization) is the world's leading authority on settling transportation disputes between shippers of products and the countries which receive these goods.

Policymakers will be sufficiently responsive in setting international trade policy objectives that increase opportunities for firms and choices for consumers when:

The government retains a vested interest in banning certain goods in order to protect public morals.

The international environment is relatively static, and there is not much change in any given year.

In order for negotiations between countries to be long-lasting, policymakers must:

The Roman Empire became one of the greatest world powers through which of the following means?

Which organization has been called "a remarkable success story of postwar international organization that was never intended to become one"?

Trade promotion authority was given by Congress to:

The charter for the International Trade Organization (ITO) was signed in Havana, Cuba in 1948.

NAFTA, Mercosur, and GCC represent: