Question 1

When a business has plants located in several foreign countries without ties to any specific nation or region,it is called a(n)

Accepted Answer

A)   multinational enterprise.
B)   joint venture.
C)   exporting business.
D)   licensing firm.
E)   none of these answer choices.F) A) and E)
G) A) and C)

Question 2

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following best compares licensing and exporting as tools for entering foreign markets?

Accepted Answer

A)   Licensing and exporting are both low-risk methods,but licensing is not as simple as exporting.
B)   Licensing is riskier and more complicated than exporting.
C)   Exporting is much riskier and more complicated than licensing.
D)   Licensing and exporting are both low-risk,but exporting is more complicated.
E)   Licensing and exporting are both complicated and expensive methods.F) A) and D)
G) B) and E)

Question 4

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Accepted Answer

A) True 
 B)False

Question 5

An import duty has the effect of all of the following except

Accepted Answer

A)   reducing the number of units exported.
B)   raising the price of the product in the importing nation.
C)   reducing the number of units imported.
D)   creating a trade restriction.
E)   protecting a domestic industry from competition.F) A) and B)
G) A) and C)

Question 6

The United Kingdom sells industrial supplies and materials to many nations around the world.The United Kingdom thus engages in

Accepted Answer

A)   dumping.
B)   tariffing.
C)   importing.
D)   exporting.
E)   deficit trading.F) C) and E)
G) A) and B)

Question 7

Which of the following functions is not performed by a trading company?

Accepted Answer

A)   Taking title to products
B)   Manufacturing products for foreign trading
C)   Linking buyers and sellers in different countries
D)   Buying products at the lowest price consistent with quality
E)   Performing activities necessary to move goods to the foreign countryF) A) and B)
G) C) and D)

Question 8

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

Accepted Answer

A) True 
 B)False

Question 9

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

Accepted Answer

A)   EU.
B)   OPEC.
C)   NAFTA.
D)   ASEAN.
E)   GATT.F) A) and E)
G) A) and D)

Question 10

All of the following are ways to export a product to a foreign market except

Accepted Answer

A)   using an export-import merchant.
B)   using an export-import agent.
C)   establishing a foreign sales office.
D)   establishing a foreign sales branch.
E)   all of these answer choices are ways to export a product to a foreign market.F) B) and D)
G) None of the above

Question 11

American automakers are concerned about the availability of so many foreign cars to U.S.consumers and that their chances to sell their own cars are limited.To directly correct the situation,they encourage Congress to impose a(n)

Accepted Answer

A)   export quota.
B)   export duty.
C)   import quota.
D)   tariff.
E)   import duty.F) A) and E)
G) D) and E)

Question 12

An unfavorable trade balance is called a(n)

Accepted Answer

A)   balance of trade.
B)   trade deficit.
C)   currency devaluation.
D)   balance of payments.
E)   import balance.F) C) and D)
G) B) and D)

Question 13

Trade restrictions usually have no immediate or long-term economic consequences.

Accepted Answer

A) True 
 B)False

Question 14

Who are the two largest contributors to the Asian Development Bank?

Accepted Answer

A)   China and Japan
B)   Japan and India
C)   The United States and Japan
D)   Russia and China
E)   China and IndonesiaF) A) and E)
G) A) and B)

Question 15

A new country is formed in central Africa.It has no absolute advantage in crude oil,diamonds,or wool.However,it does manufacture high-quality bows and arrows for specialized safari adventures.Which of the following statements is true?

Accepted Answer

A)   The new country should try to produce its own crude oil,diamonds,and wool.
B)   The new country has a comparative advantage in the production of bows and arrows.
C)   The new country has an unqualified advantage in the production of bows and arrows.
D)   The new country has a determined advantage in the production of arrows.
E)   The new country is engaged in dumping bows and arrows.F) C) and E)
G) A) and E)

Question 16

By definition,every country has a comparative advantage in some product.

Accepted Answer

A) True 
 B)False

Question 17

When a country exports more than it imports,it has a(n)

Accepted Answer

A)   trade deficit.
B)   favorable balance of trade.
C)   unfavorable exchange rate.
D)   unfavorable balance of trade.
E)   unfavorable balance of payments.F) A) and B)
G) A) and C)

Question 18

​While the global economy continued to grow robustly until 2007,economic performance ______.

Accepted Answer

A)   ​was sluggish then stopped in 2009.
B)   ​was advancing at an equal pace.
C)   ​outstripped the global economy.
D)   ​continued gradually.E) None of the above
F) A) and B)

Question 19

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Accepted Answer

A) True 
 B)False

Question 20

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Accepted Answer

A country's balance of trade is the tota...

Exam 3: Global Business

Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

Correct AnswerverifiedShow Answer

Which of the following best compares licensing and exporting as tools for entering foreign markets?

Correct AnswerverifiedShow Answer

A new country is formed in central Africa.It has no absolute advantage in crude oil,diamonds,or wool.However,it does manufacture high-quality bows and arrows for specialized safari adventures.Which of the following statements is true?

Correct AnswerverifiedShow Answer

All of the following are ways to export a product to a foreign market except

Correct AnswerverifiedShow Answer

What is a national balance of trade? What does someone mean when he or she says that the balance of trade is favorable? Unfavorable?

Correct AnswerverifiedA country's balance of trade is the tota...View AnswerShow Answer

When a country exports more than it imports,it has a(n)

Correct AnswerverifiedShow Answer

American automakers are concerned about the availability of so many foreign cars to U.S.consumers and that their chances to sell their own cars are limited.To directly correct the situation,they encourage Congress to impose a(n)

Correct AnswerverifiedShow Answer

OPEC is a group that was formed in 1960 in response to reductions in the prices that oil companies were willing to pay for crude oil.

Correct AnswerverifiedShow Answer

Which of the following functions is not performed by a trading company?

Correct AnswerverifiedShow Answer

Trade restrictions usually have no immediate or long-term economic consequences.

Correct AnswerverifiedShow Answer

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

Correct AnswerverifiedShow Answer

Who are the two largest contributors to the Asian Development Bank?

Correct AnswerverifiedShow Answer

​While the global economy continued to grow robustly until 2007,economic performance ______.

Correct AnswerverifiedShow Answer

An import duty has the effect of all of the following except

Correct AnswerverifiedShow Answer

The United Kingdom sells industrial supplies and materials to many nations around the world.The United Kingdom thus engages in

Correct AnswerverifiedShow Answer

An international organization that includes the United States and several other countries and whose goal is to reduce or eliminate tariffs and other barriers to world trade is commonly referred to as GATT.

Correct AnswerverifiedShow Answer

By definition,every country has a comparative advantage in some product.

Correct AnswerverifiedShow Answer

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called an economic community.

Correct AnswerverifiedShow Answer

When a business has plants located in several foreign countries without ties to any specific nation or region,it is called a(n)

Correct AnswerverifiedShow Answer

An unfavorable trade balance is called a(n)

Correct AnswerverifiedShow Answer

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A country's balance of trade is the tota...
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While the global economy continued to grow robustly until 2007,economic performance ______.

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