Question 1

Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track.This is a partial description of the nation's:

Accepted Answer

A)  oligopoly
B)  natural advantage
C)  infrastructure
D)  ethnocentrism
E)  cultural environmentF) A) and C)
G) A) and E)

Question 2

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO) .

Accepted Answer

A)  Uruguay Round
B)  North American Free Trade Agreement
C)  Maastricht Treaty
D)  Mercosur
E)  International Monetary FundF) B) and D)
G) D) and E)

Question 3

Why do many people fear trade and globalization?

Accepted Answer

A)  Trade and globalization will increase per capita income.
B)  An open economy spurs innovations with fresh ideas from abroad.
C)  Many fear trade and globalization will lead to massive job losses.
D)  Free trade and globalization lead to increased productivity.
E)  Export jobs often pay less than other jobs.F) A) and D)
G) B) and E)

Question 4

_____ are corporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located.

Accepted Answer

Multinatio...

Question 5

Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

Accepted Answer

A) True 
 B)False

Question 6

A German law that prohibited the use of hops grown outside of the country in the production of German-made beer was overturned in the late 1980s.This law was an example of a(n) :

Accepted Answer

A)  controlled purchase policy
B)  restrictive purchase regulation
C)  domestic-only law
D)  buy-national regulation
E)  domestic-content lawF) B) and E)
G) C) and D)

Question 7

The Royal Government of Bhutan imposes a 10 percent tax on all operating tables, examination tables, and dentist's chairs imported into Bhutan.Another name for this type of tax is a(n) :

Accepted Answer

A)  embargo
B)  boycott
C)  subsidy
D)  quota system
E)  tariffF) B) and C)
G) A) and E)

Question 8

Currency markets operate under a system called _____.This means that prices of currencies vary based upon demand and supply of that currency.

Accepted Answer

A)  variable trade
B)  variable costs
C)  international trade rate
D)  floating exchange rate
E)  breakeven pointF) B) and D)
G) A) and E)

Question 9

Japan bans importation of rice to protect its domestic rice industry.This ban is an example of:

Accepted Answer

A)  free trade
B)  ethnocentricity
C)  dumping
D)  countertrading
E)  protectionismF) C) and E)
G) B) and E)

Question 10

Which of the following is NOT part of a nation's infrastructure?

Accepted Answer

A)  its postal systems
B)  its Internet sites
C)  its mountain ranges
D)  its railroads
E)  its interstate roadsF) A) and B)
G) A) and C)

Question 11

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Accepted Answer

A)  Export quotas
B)  Subsidies
C)  Import quotas
D)  Embargo levels
E)  TariffsF) A) and C)
G) A) and E)

Question 12

A _____ regulation in the United States bans the use of foreign steel in constructing U.S.highways.

Accepted Answer

A)  controlled purchase policy
B)  restrictive purchase regulation
C)  domestic-only law
D)  buy-national regulation
E)  domestic-content lawF) None of the above
G) B) and E)

Question 13

How has terrorism affected global trade?

Accepted Answer

A)  Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.
B)  Terrorism has led to tighter emigration policies.
C)  Terrorism has resulted in merchandise be moved more quickly across nations.
D)  Companies are stocking less inventory than ever before.
E)  Terrorism has not affected global trade.F) B) and E)
G) None of the above

Question 14

A natural barrier that faces Argentina when it sells beef to Siberia is:

Accepted Answer

A)  custom regulations
B)  exchange controls
C)  government controls
D)  distance
E)  taxesF) C) and E)
G) B) and E)

Question 15

One of the advantages multinational corporations have over other companies is their ability to sidestep regulatory difficulties.

Accepted Answer

A) True 
 B)False

Question 16

Since the balance of payments is the summary of a country's financial transactions with another country, a discussion of a nation's balance of payments will need to include a discussion of:

Accepted Answer

A)  its imports and exports
B)  its long-term overseas business investments
C)  its government loans
D)  its gifts and foreign aid
E)  all of the aboveF) A) and C)
G) B) and E)

Question 17

Pierre Cardin gives technical advice on textile manufacturing to China and in exchange receives silk and cashmere.This is an example of a(n) :

Accepted Answer

A)  joint venture
B)  countertrade
C)  contra-deal
D)  counteroffer
E)  international partnershipF) C) and D)
G) D) and E)

Question 18

_____ is the reduction of a currency's value relative to another currency.

Accepted Answer

A)  Evaluation
B)  Devaluation
C)  Currency leveling
D)  Deregulation
E)  Exchange depreciationF) B) and C)
G) All of the above

Question 19

The Blue Bird Bus Company in Georgia sells buses to the South African government.To South Africa, these buses are an example of:

Accepted Answer

A)  intangibles
B)  tariffs
C)  countertrades
D)  exports
E)  importsF) All of the above
G) C) and E)

Question 20

In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is the world's largest producer of the fruit.This prohibition remained in effect until 1996.The ban on importing Mexican avocados is an example of a(n) :

Accepted Answer

A)  import quota
B)  embargo
C)  restrictive limit
D)  boycott
E)  tariffF) A) and B)
G) D) and E)

Exam 3: Competing in the Global Marketplace

Since the balance of payments is the summary of a country's financial transactions with another country, a discussion of a nation's balance of payments will need to include a discussion of:

Correct AnswerverifiedShow Answer

In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is the world's largest producer of the fruit.This prohibition remained in effect until 1996.The ban on importing Mexican avocados is an example of a(n) :

Correct AnswerverifiedShow Answer

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Correct AnswerverifiedShow Answer

Japan bans importation of rice to protect its domestic rice industry.This ban is an example of:

Correct AnswerverifiedShow Answer

Currency markets operate under a system called _____.This means that prices of currencies vary based upon demand and supply of that currency.

Correct AnswerverifiedShow Answer

The _____ is an agreement that dramatically lowered trade barriers worldwide and created the new World Trade Organization (WTO) .

Correct AnswerverifiedShow Answer

Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track.This is a partial description of the nation's:

Correct AnswerverifiedShow Answer

A natural barrier that faces Argentina when it sells beef to Siberia is:

Correct AnswerverifiedShow Answer

One of the advantages multinational corporations have over other companies is their ability to sidestep regulatory difficulties.

Correct AnswerverifiedShow Answer

Why do many people fear trade and globalization?

Correct AnswerverifiedShow Answer

The Blue Bird Bus Company in Georgia sells buses to the South African government.To South Africa, these buses are an example of:

Correct AnswerverifiedShow Answer

Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

Correct AnswerverifiedShow Answer

A German law that prohibited the use of hops grown outside of the country in the production of German-made beer was overturned in the late 1980s.This law was an example of a(n) :

Correct AnswerverifiedShow Answer

_____ is the reduction of a currency's value relative to another currency.

Correct AnswerverifiedShow Answer

Pierre Cardin gives technical advice on textile manufacturing to China and in exchange receives silk and cashmere.This is an example of a(n) :

Correct AnswerverifiedShow Answer

A _____ regulation in the United States bans the use of foreign steel in constructing U.S.highways.

Correct AnswerverifiedShow Answer

How has terrorism affected global trade?

Correct AnswerverifiedShow Answer

Which of the following is NOT part of a nation's infrastructure?

Correct AnswerverifiedShow Answer

_____ are corporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located.

Correct AnswerverifiedMultinatio...View AnswerShow Answer

The Royal Government of Bhutan imposes a 10 percent tax on all operating tables, examination tables, and dentist's chairs imported into Bhutan.Another name for this type of tax is a(n) :

Correct AnswerverifiedShow Answer

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