Question 1

When a country sells its products in a foreign country at a cheaper price than usual,and sometimes even at a loss,it is dumping products.

Accepted Answer

A) True 
 B)False

Question 2

According to the principle of comparative advantage,each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

Accepted Answer

A) True 
 B)False

Question 3

Azerbaijan has imports of $1.8 billion and has a favourable balance of trade.This means that Azerbaijan has which of the following?

Accepted Answer

A)  less than $1.8 billion in exports 
B)  more than $1.8 billion in exports 
C)  low inflation 
D)  exactly $1.8 billion in exports

Question 4

Which of the following is best described by the term "preferential tariff"?

Accepted Answer

A)  The tariff applies only to luxury items. 
B)  The tariff limits the number of products that can be imported from particular countries. 
C)  Tax is placed on countertrades. 
D)  Tariff advantages are given to one country over others.

Question 5

Which of the following agreements dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO)?

Accepted Answer

A)  Maastricht Treaty 
B)  Uruguay Round 
C)  North American Free Trade Agreement 
D)  Mercosur

Question 6

Companies can use several methods to participate in the global marketplace.To which of the methods is franchising is most closely related?

Accepted Answer

The answer of Companies can use several methods to participate...

Question 7

In 2009,Argentina exported $25.3 billion and imported products valued at $9 billion.Argentina exhibited which of the following?

Accepted Answer

A)  a positive balance of payment 
B)  a negative trade deficit 
C)  a favourable balance of trade 
D)  a negative balance of trade

Question 8

Which of the following organizations were formed with the original purpose of helping build infrastructure in developing countries and helping relieve the debt burden of these countries?

Accepted Answer

A)  the International Funding Bank 
B)  the Central Bank 
C)  the World Bank 
D)  the Bank of Canada

Question 9

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply,then both countries are exercising which of the following principles?

Accepted Answer

A)  distinctive advantage 
B)  comparative advantage 
C)  absolute advantage 
D)  parallel competencies

Question 10

Canada buys copper from Chile's Escondido copper mine.The copper is used to make wiring for the Canadian telecommunications industry and for many other purposes.For Canada,the copper is an example of which of the following?

Accepted Answer

A)  tariff 
B)  export 
C)  embargo 
D)  import

Question 11

Which of the following is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries?

Accepted Answer

A)  multinationalism 
B)  unionism 
C)  federalism 
D)  nationalism

Question 12

The most fundamental reason for the growth in world trade is probably due to which of the following?

Accepted Answer

A)  cultural differences 
B)  the creation of free-trade areas 
C)  fluctuating exchange rates 
D)  the need for businesses to expand their markets

Question 13

Which of the following characteristics is exhibited by a company that has a global vision?

Accepted Answer

A)  being interested in nothing more complicated than exporting 
B)  having a very nationalistic view of the world 
C)  recognizing and reacting to international business opportunities 
D)  following its competition into foreign markets

Question 14

Briefly explain how an exchange of merchandise can occur without involving cash or any other form of financial consideration.

Accepted Answer

The answer of Briefly explain how an exchange of merchandise...

Question 15

The Uruguay Round of trade negotiation is an agreement that affects trade only among Latin American countries.

Accepted Answer

A) True 
 B)False

Question 16

Latvia had a favourable balance of trade last year when it exported $2.3 billion and imported $3.9 billion.

Accepted Answer

A) True 
 B)False

Question 17

Active ownership of a foreign company,with direct investors having either a controlling or a large minority interest in the firm,is best described by which of the following activities?

Accepted Answer

A)  an international corporation 
B)  a limited partnership 
C)  an international cooperative 
D)  direct foreign investment

Question 18

A domestic firm may decide to sign an agreement for the production of its goods by an established foreign manufacturer.Such private-label manufacturing by a foreign company is known as which of the following?

Accepted Answer

A)  duplicate labelling 
B)  franchising 
C)  international labelling 
D)  contract manufacturing

Question 19

An enterprise in which two or more firms or investors (including governments)share ownership of a business and its property rights is known as which of the following?

Accepted Answer

A)  a cooperative 
B)  a joint venture 
C)  an international partnership 
D)  a cartel

Question 20

Regardless of its size,a multinational corporation has only one corporate headquarters.

Accepted Answer

A) True 
 B)False

Exam 2: the Global Marketplace and Governments’ Roles

When a country sells its products in a foreign country at a cheaper price than usual,and sometimes even at a loss,it is dumping products.

According to the principle of comparative advantage,each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

Azerbaijan has imports of $1.8 billion and has a favourable balance of trade.This means that Azerbaijan has which of the following?

Which of the following is best described by the term "preferential tariff"?

Which of the following agreements dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO) ?

Companies can use several methods to participate in the global marketplace.To which of the methods is franchising is most closely related?

In 2009,Argentina exported $25.3 billion and imported products valued at $9 billion.Argentina exhibited which of the following?

Which of the following organizations were formed with the original purpose of helping build infrastructure in developing countries and helping relieve the debt burden of these countries?

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply,then both countries are exercising which of the following principles?

Canada buys copper from Chile's Escondido copper mine.The copper is used to make wiring for the Canadian telecommunications industry and for many other purposes.For Canada,the copper is an example of which of the following?

Which of the following is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries?

The most fundamental reason for the growth in world trade is probably due to which of the following?

Which of the following characteristics is exhibited by a company that has a global vision?

Briefly explain how an exchange of merchandise can occur without involving cash or any other form of financial consideration.

The Uruguay Round of trade negotiation is an agreement that affects trade only among Latin American countries.

Latvia had a favourable balance of trade last year when it exported $2.3 billion and imported $3.9 billion.

Active ownership of a foreign company,with direct investors having either a controlling or a large minority interest in the firm,is best described by which of the following activities?

A domestic firm may decide to sign an agreement for the production of its goods by an established foreign manufacturer.Such private-label manufacturing by a foreign company is known as which of the following?

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is known as which of the following?

Regardless of its size,a multinational corporation has only one corporate headquarters.