Question 1

Why is balance of payments a much broader concept than balance of trade?

Accepted Answer

The balance of payments (BOP) is a much ...

Question 2

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any specific nation or region.These are examples of

Accepted Answer

A)   members of the Dow Jones Industrial Average.
B)   global trading companies.
C)   internationally owned facilities.
D)   multinational enterprises.
E)   foreign-domestic corporations.F) A) and B)
G) B) and E)

Question 3

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Accepted Answer

A) True 
 B)False

Question 4

The International Trade Administration (ITA) offers assistance and information to help exporters.

Accepted Answer

A) True 
 B)False

Question 5

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Accepted Answer

The Kennedy, the Tokyo, Uruguay, and the...

Question 6

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Accepted Answer

A) True 
 B)False

Question 7

What are nontariff barriers? How do nontariff barriers restrict international trade?

Accepted Answer

Nontariff barriers are restrictions on t...

Question 8

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

Accepted Answer

A) True 
 B)False

Question 9

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A)   They will be faced with the highest demand ever.
B)   They will become more competitive.
C)   They will be put out of business because they cannot compete with the prices.
D)   They will try to dump their toys in other countries.
E)   Their revenues will decrease, but their long-term success will not be affected.F) B) and D)
G) All of the above

Question 10

What is dumping? Why do domestic manufacturers obtain antidumping duties through the government?

Accepted Answer

Dumping refers to the practice of a fore...

Question 11

Identify the role of the Export-Import Bank of the United States in fostering international business.

Accepted Answer

The Export-Import Bank of the United Sta...

Question 12

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Accepted Answer

A) True 
 B)False

Question 13

When the United States recently imported $1,470 billion in merchandise and exported $819 billion, it had a trade deficit.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)   trade surplus
B)   favorable balance of trade
C)   favorable exchange role
D)   unfavorable balance of trade
E)   favorable balance of paymentsF) B) and E)
G) A) and D)

Question 15

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in London, England, the company

Accepted Answer

A)   is importing the lenses.
B)   is exporting the lenses.
C)   has an absolute advantage.
D)   is increasing the balance-of-trade deficit.
E)   is making a big mistake.F) C) and E)
G) A) and E)

Question 16

How has international trade changed since the end of World War II?

Accepted Answer

A)   Trade across national borders has decreased since its peak during the early to mid-1900s.
B)   International trade has increased steadily since this period of time.
C)   The amount of international trading has remained relatively stable since this time.
D)   International trade has become completely unrestricted.
E)   International trading has become much more heavily regulated and restricted by all countries.F) D) and E)
G) A) and C)

Question 17

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a potential drawback of licensing?

Accepted Answer

A)   If quality is compromised, it may reflect poorly on the company providing the license.
B)   Licensing will provide the original producer with much foreign marketing experience.
C)   It is a relatively inexpensive way to market your product internationally.
D)   It is an extremely expensive and highly involved method of international expansion.
E)   It provides no compensation for the original company.F) A) and D)
G) D) and E)

Question 19

What might be inferred if a nation has a continual deficit in its balance of payments?

Accepted Answer

A continual deficit in the balance of pa...

Question 20

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)  ______.

Accepted Answer

A)   world trade organization
B)   peace agreement
C)   economic community
D)   free trade agreement
E)   global marketplaceF) None of the above
G) B) and E)

Exam 3: Exploring Global Business

The International Trade Administration (ITA) offers assistance and information to help exporters.

Correct AnswerverifiedShow Answer

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in London, England, the company

Correct AnswerverifiedShow Answer

What are the Kennedy, the Tokyo, Uruguay, and the Doha Rounds? How fruitful were these rounds of negotiations?

Correct AnswerAnswered by ExamLex AIThe Kennedy, the Tokyo, Uruguay, and the...View AnswerShow Answer

Joint venture agreements generally require a very low level of commitment from all the parties involved.

Correct AnswerverifiedShow Answer

What might be inferred if a nation has a continual deficit in its balance of payments?

Correct AnswerAnswered by ExamLex AIA continual deficit in the balance of pa...View AnswerShow Answer

When the United States recently imported $1,470 billion in merchandise and exported $819 billion, it had a trade deficit.

Correct AnswerverifiedShow Answer

Which of the following is a potential drawback of licensing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Identify the role of the Export-Import Bank of the United States in fostering international business.

Correct AnswerAnswered by ExamLex AIThe Export-Import Bank of the United Sta...View AnswerShow Answer

Exportation of large quantities of a product at a price lower than that of the same product in the home market is called dumping.

Correct AnswerverifiedShow Answer

How has international trade changed since the end of World War II?

Correct AnswerverifiedShow Answer

What is dumping? Why do domestic manufacturers obtain antidumping duties through the government?

Correct AnswerAnswered by ExamLex AIDumping refers to the practice of a fore...View AnswerShow Answer

Why is balance of payments a much broader concept than balance of trade?

Correct AnswerAnswered by ExamLex AIThe balance of payments (BOP) is a much ...View AnswerShow Answer

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n) ______.

Correct AnswerverifiedShow Answer

What are nontariff barriers? How do nontariff barriers restrict international trade?

Correct AnswerAnswered by ExamLex AINontariff barriers are restrictions on t...View AnswerShow Answer

Taiwanese manufacturers are dumping toys in Germany.What will happen to German toy manufacturers if the German government allows this dumping to continue?

Correct AnswerverifiedShow Answer

A draft is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise and thus guaranteeing payment once it is accepted by the importer's bank.

Correct AnswerverifiedShow Answer

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Correct AnswerverifiedShow Answer

Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any specific nation or region.These are examples of

Correct AnswerverifiedShow Answer

From 1947 to 1994, GATT was unable to sponsor any round of negotiations to reduce trade restrictions.

Correct AnswerverifiedShow Answer

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The Kennedy, the Tokyo, Uruguay, and the...
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A continual deficit in the balance of pa...
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The Export-Import Bank of the United Sta...
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Answered by ExamLex AI
Dumping refers to the practice of a fore...
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The balance of payments (BOP) is a much ...
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Nontariff barriers are restrictions on t...
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