Question 1

The World Bank was initially formed in 1944 to aid countries suffering from the destruction of war.

Accepted Answer

A) True 
 B)False

Question 2

The _____ has its origins in the GATT,to which it became the successor organization in January of 1995.

Accepted Answer

A)  IMF 
B)  WTO 
C)  World Bank 
D)  MERCOSUR

Question 3

Which of the following gave Congress the right to accept or reject trade treaties and agreements,but reduced the amendment procedures?

Accepted Answer

A)  Protectionistic legislation 
B)  Trade promotion authority 
C)  Judicial immunity 
D)  Export consortia

Question 4

Which of the following statements about the IMF is true?

Accepted Answer

A)  The IMF contributed toward providing international liquidity and toward facilitating international trade. 
B)  In light of the worldwide slowdown of economies and the financial crisis, the IMF focused on its traditional customers of the developed markets and economies. 
C)  In order to ensure that a local stimulus would not be suffocated by global restrictions, the IMF minimized simultaneous expansions in economies. 
D)  The original goal of the IMF ensured variable exchange rates between countries.

Question 5

Describe the significance of export promotion efforts.

Accepted Answer

The answer of Describe the significance of export promotion efforts....

Question 6

The belief that international trade was a key to worldwide prosperity led the United States to create a "Pax Americana."

Accepted Answer

A) True 
 B)False

Question 7

"Voluntary" import restraints have been used mainly in areas such as textiles,automobiles,and steel,and are intended to _____.

Accepted Answer

A)  help domestic companies regain their trade prominence of years past 
B)  show good political citizenship by members 
C)  penalize exporters of raw materials 
D)  situate the imports as a political component as opposed to a trade embargo

Question 8

When a company expands its market by offering its products to international customers,it can produce more of its products efficiently,thus reducing the overall cost of each individual unit.This is known as _____.

Accepted Answer

A)  product diversification 
B)  product differentiation 
C)  economies of scale 
D)  monopolistic competition

Question 9

Providing preferential treatment to domestic bidders over foreign bidders,using national standards that are not comparable to international standards,placing emphasis on design rather than performance,and providing for general difficulties in the market entry of foreign products are all examples of _____.

Accepted Answer

A)  import/export quotas 
B)  protectionistic legislation 
C)  mixed aid credits 
D)  nontariff barriers

Question 10

Meat-eats,a business entity located in Miami has recently started promoting "Buying U.S.A.," a campaign that focuses on the purchase of meat products that are manufactured exclusively in the United States.This campaign would be projected as _____.

Accepted Answer

A)  a nontariff barrier to trade 
B)  poor public relations 
C)  significantly helping the international global market 
D)  increasing the levels of global competition

Question 11

Which of the following statements is true about foreign direct investment?

Accepted Answer

A)  Foreign investments may result in growing concern among policymakers about dependency on foreign owners. 
B)  The United States is the sole foreign direct investor in the world. 
C)  Foreign affiliates are not participants of trade. 
D)  Foreign direct investment tends to be distributed equally across all industries.

Question 12

_____ are special because they can affect currency values and the fiscal and monetary policies of governments,shape public perception of competitiveness,and determine the level of imports a country can afford.

Accepted Answer

A)  Protectionistic laws 
B)  Mixed aid credits 
C)  Exports 
D)  Nontariffs

Question 13

The Transatlantic Business Dialogue (TBD)is a nongovernmental organization composed of business leaders from Europe and the United States.

Accepted Answer

A) True 
 B)False

Question 14

A restriction of foreign direct investments will result in less domestic control over industries.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements about the GATT is true?

Accepted Answer

A)  Services and agriculture were the main areas covered by GATT. 
B)  It began as a set of rules for settlement of disputes in domestic trade. 
C)  It was designed to operate by consensus. 
D)  Over time, it evolved into an institution that focused on increasing the prevailing low tariffs.

Question 16

Common coinage was developed in ancient Rome to ensure that business transactions could easily be carried out throughout the empire.

Accepted Answer

A) True 
 B)False

Question 17

Government support in the form of export promotion assistance is appropriate if it increases market transparency.

Accepted Answer

A) True 
 B)False

Question 18

The competitive pressures exerted by imports work to keep quality high and prices low.

Accepted Answer

A) True 
 B)False

Exam 2: International Trade Frameworks and Policy

The World Bank was initially formed in 1944 to aid countries suffering from the destruction of war.

The _____ has its origins in the GATT,to which it became the successor organization in January of 1995.

Which of the following gave Congress the right to accept or reject trade treaties and agreements,but reduced the amendment procedures?

Which of the following statements about the IMF is true?

Describe the significance of export promotion efforts.

The belief that international trade was a key to worldwide prosperity led the United States to create a "Pax Americana."

"Voluntary" import restraints have been used mainly in areas such as textiles,automobiles,and steel,and are intended to _____.

When a company expands its market by offering its products to international customers,it can produce more of its products efficiently,thus reducing the overall cost of each individual unit.This is known as _____.

Meat-eats,a business entity located in Miami has recently started promoting "Buying U.S.A.," a campaign that focuses on the purchase of meat products that are manufactured exclusively in the United States.This campaign would be projected as _____.

Which of the following statements is true about foreign direct investment?

_____ are special because they can affect currency values and the fiscal and monetary policies of governments,shape public perception of competitiveness,and determine the level of imports a country can afford.

The Transatlantic Business Dialogue (TBD)is a nongovernmental organization composed of business leaders from Europe and the United States.

A restriction of foreign direct investments will result in less domestic control over industries.

Which of the following statements about the GATT is true?

Common coinage was developed in ancient Rome to ensure that business transactions could easily be carried out throughout the empire.

Government support in the form of export promotion assistance is appropriate if it increases market transparency.

The competitive pressures exerted by imports work to keep quality high and prices low.