Question 1

When was the World Trade Organization founded?

Accepted Answer

A)   In 200 A.D. in the Roman Empire, as the Romans conquered more and more land
B)   As a result of China's inclusion in the global market after the Nixon summit of 1972
C)   During President Ronald Reagan's Tear Down This Wall speech in 1984
D)   In 1995 during President Clinton's first term of officeE) All of the above
F) A) and B)

Question 2

In light of persistent trade deficits, growing foreign direct investment, and the tendency of some firms and industries to seek legislative redress for marketing failures, the U.S. Congress in the past two decades has:

Accepted Answer

A)   left trade decisions in the hand of the WTO.
B)   organized a ban of imported products which compete with long-standing companies.
C)   given more power to the President to improve trade opportunities.
D)   declared "war" on countries that do not invest directly in our country.E) None of the above
F) B) and C)

Question 3

The original goal of the International Monetary Fund (IMF) was to provide for fixed exchange rates between member countries.

Accepted Answer

A) True 
 B)False

Question 4

The European Union (EU) now represents a formidable market size internally and market power externally and is considered an economic bloc.

Accepted Answer

A) True 
 B)False

Question 5

The United States has been able to export more products than it imports since 1977, causing a trade surplus in this country which has provided jobs for thousands of Americans.

Accepted Answer

A) True 
 B)False

Question 6

The WTO, IMF, and World Bank operate on a global level. Which of the following is an example of a trade alliance that operates under this same concept on a regional basis?

Accepted Answer

A)   The Economic Bloc
B)   The World Chamber of Commerce
C)   The United Nations
D)   The Foundation for a Free AmericaE) A) and C)
F) A) and D)

Question 7

When U.S. firms work together to establish export promotion development, as allowed by the Export Trading Company Act of 1982, the companies are in effect forming a:

Accepted Answer

A)   bilateral consortium.
B)   export-import industry.
C)   export consortia.
D)   run on banks.E) A) and D)
F) C) and D)

Question 8

Over the last fifty years, how has U.S. international trade fared in comparison to the rest of the world?

Accepted Answer

Over the years, the U.S. international t...

Question 9

When a firm is founded with global scope in mind from the very beginning, what do marketers call that type of company?

Accepted Answer

A)   Specialized
B)   Stratospheric
C)   Digital commerce
D)   Born globalE) B) and C)
F) A) and D)

Question 10

Which product category receives the largest emphasis from the U.S. Government with regards to encouraging trade with foreign countries?

Accepted Answer

A)   Agriculture
B)   Aeronautics
C)   Space flight
D)   MedicineE) B) and D)
F) B) and C)

Question 11

Which department of the United States government provides assistance to companies in helping formulate foreign trade and international marketing plans?

Accepted Answer

A)   Homeland Security
B)   Treasury
C)   Commerce
D)   StateE) A) and B)
F) A) and C)

Question 12

Import authorization, excise duties, discretionary licensing, and trade restricting affecting electronic commerce are examples of trade barriers.

Accepted Answer

A) True 
 B)False

Question 13

Which currency is most accepted worldwide?

Accepted Answer

A)   The French Mark
B)   The U.S. Dollar
C)   The Japanese Yen
D)   The British SchillingE) B) and C)
F) A) and D)

Question 14

From time to time, global divisions take place. One good example is the ideological split between the East and the West that occurred after 1945 when the Soviet Union encouraged members of the Eastern bloc not to do business with the West.

Accepted Answer

A) True 
 B)False

Question 15

In the recent past, the majority of international and global markets have:

Accepted Answer

A)   disappeared and account for less than half of all transactions in world markets.
B)   continued to grow in terms of trade and investment volume for all countries.
C)   not focused on the value of segmentation.
D)   created niche forecasting reminiscent of the feudal system.E) None of the above
F) A) and B)

Question 16

Trade negotiations that are conducted between two nations are considered:

Accepted Answer

A)   unilateral.
B)   multilateral.
C)   bilateral.
D)   omnilateral.E) A) and B)
F) None of the above

Question 17

Bilateral negotiations are carried out mainly between two nations, while multilateral negotiations are carried out among a number of nations.

Accepted Answer

A) True 
 B)False

Question 18

If a business entity promotes "Buying U.S.A." (meaning, only buy products that are manufactured in the United States) , and employees benefit from these purchases, this campaign would be seen as:

Accepted Answer

A)   a non-tariff barrier.
B)   poor public relations.
C)   significantly helping the international global market.
D)   something the French might do.E) C) and D)
F) None of the above

Question 19

"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 producers of raw materials.
D)   situate the imports as a political component as opposed to a trade embargo.E) A) and B)
F) A) and C)

Question 20

The Smoot-Hawley Act of the 1930s set the stage for the collapse of the world financial system.

Accepted Answer

A) True 
 B)False

Exam 2: Trade Institutions and Trade Policy

Which currency is most accepted worldwide?

Correct AnswerverifiedShow Answer

Trade negotiations that are conducted between two nations are considered:

Correct AnswerverifiedShow Answer

In the recent past, the majority of international and global markets have:

Correct AnswerverifiedShow Answer

When was the World Trade Organization founded?

Correct AnswerverifiedShow Answer

The original goal of the International Monetary Fund (IMF) was to provide for fixed exchange rates between member countries.

Correct AnswerverifiedShow Answer

Import authorization, excise duties, discretionary licensing, and trade restricting affecting electronic commerce are examples of trade barriers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The WTO, IMF, and World Bank operate on a global level. Which of the following is an example of a trade alliance that operates under this same concept on a regional basis?

Correct AnswerverifiedShow Answer

From time to time, global divisions take place. One good example is the ideological split between the East and the West that occurred after 1945 when the Soviet Union encouraged members of the Eastern bloc not to do business with the West.

Correct AnswerverifiedShow Answer

In light of persistent trade deficits, growing foreign direct investment, and the tendency of some firms and industries to seek legislative redress for marketing failures, the U.S. Congress in the past two decades has:

Correct AnswerverifiedShow Answer

Over the last fifty years, how has U.S. international trade fared in comparison to the rest of the world?

Correct AnswerverifiedOver the years, the U.S. international t...View AnswerShow Answer

Which product category receives the largest emphasis from the U.S. Government with regards to encouraging trade with foreign countries?

Correct AnswerverifiedShow Answer

The United States has been able to export more products than it imports since 1977, causing a trade surplus in this country which has provided jobs for thousands of Americans.

Correct AnswerverifiedShow Answer

When a firm is founded with global scope in mind from the very beginning, what do marketers call that type of company?

Correct AnswerverifiedShow Answer

When U.S. firms work together to establish export promotion development, as allowed by the Export Trading Company Act of 1982, the companies are in effect forming a:

Correct AnswerverifiedShow Answer

The Smoot-Hawley Act of the 1930s set the stage for the collapse of the world financial system.

Correct AnswerverifiedShow Answer

Bilateral negotiations are carried out mainly between two nations, while multilateral negotiations are carried out among a number of nations.

Correct AnswerverifiedShow Answer

If a business entity promotes "Buying U.S.A." (meaning, only buy products that are manufactured in the United States) , and employees benefit from these purchases, this campaign would be seen as:

Correct AnswerverifiedShow Answer

Which department of the United States government provides assistance to companies in helping formulate foreign trade and international marketing plans?

Correct AnswerverifiedShow Answer

The European Union (EU) now represents a formidable market size internally and market power externally and is considered an economic bloc.

Correct AnswerverifiedShow Answer

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Over the years, the U.S. international t...
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