Question 1

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

Accepted Answer

A) True 
 B)False

Question 2

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Accepted Answer

A)  protective tariff.
B)  revenue tariff.
C)  dumping duty.
D)  import quota.
E)  excise tax.F) A) and E)
G) C) and D)

Question 3

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

Accepted Answer

A)  auction agreement.
B)  countertrade.
C)  strategic transaction.
D)  licensing agreement.
E)  free-trade agreement.F) D) and E)
G) B) and E)

Question 4

Countertrade is losing its importance in international trade.

Accepted Answer

A) True 
 B)False

Question 5

Arguments for imposing trade restrictions include

Accepted Answer

A)  the misallocation of international resources.
B)  equalizing a nation's balance of payments.
C)  higher prices for consumers.
D)  restriction of consumers' choices.
E)  none of the above.F) A) and C)
G) B) and C)

Question 6

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

Accepted Answer

A)  GATT
B)  Trade Information Center
C)  World Trade Association
D)  U.S.Export Assistance Centers
E)  U.S.and Foreign Commercial ServicesF) C) and D)
G) All of the above

Question 7

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE 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) A) and B)
G) B) and E)

Question 8

Political considerations usually are involved in a country's decision to impose a trade embargo.

Accepted Answer

A) True 
 B)False

Question 9

Strategic alliances and ____ are very similar.

Accepted Answer

A)  trading companies
B)  most-favored-nation status
C)  licensing agreements
D)  joint ventures
E)  corporate mergersF) A) and B)
G) A) and C)

Question 10

Quotas may be set on worldwide imports or on imports from a specific country.

Accepted Answer

A) True 
 B)False

Question 11

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Accepted Answer

A)  exporting
B)  importing
C)  trading
D)  dumping
E)  taxingF) A) and B)
G) B) and E)

Question 12

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

Accepted Answer

Dumping is the exportation of large quan...

Question 13

U.S. trade restrictions benefit only a few industries while harming many others.

Accepted Answer

A) True 
 B)False

Question 14

Arguments for the government imposing restrictions on foreign trade include

Accepted Answer

A)  the loss of jobs in foreign countries.
B)  advancing technology will harm the country's economy.
C)  restriction of consumers' choices.
D)  protection of the health of its citizens.
E)  helping the foreign country become more competitive.F) B) and E)
G) C) and E)

Question 15

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Accepted Answer

A)  provide markets for its products
B)  have its name in The Wall Street Journal
C)  have its exports taxed
D)  be involved in international politics
E)  control the governments of other countriesF) A) and E)
G) B) and D)

Question 16

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

Accepted Answer

If a country has a continual deficit in ...

Question 17

Lynn Bernerd, Inc.
Lynn Bernerd, Inc., manufactures and sells reclining furnitur
-Refer to Lynn Bernerd, Inc. Which of the following options is not one of the steps needed for entering an international market?

Accepted Answer

A)  Contact local government to see if taxes on trade can be waived.
B)  Establish an overseas distribution network.
C)  Set export prices and payment terms, methods, and techniques.
D)  Identify key foreign markets for the product.
E)  Identify exportable products.F) B) and E)
G) A) and E)

Question 18

When was GATT first established?

Accepted Answer

A)  At the turn of the twentieth century
B)  Following World War I
C)  At the end of World War II
D)  During the Great Depression
E)  In the early 1960sF) A) and B)
G) B) and C)

Question 19

​Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.

Accepted Answer

A)  ​the International Monetary Fund.
B)  ​the European Bank for Reconstruction and Development.
C)  ​the World Bank.
D)  ​the Federal Reserve Bank.E) A) and D)
F) A) and C)

Question 20

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

Accepted Answer

A) True 
 B)False

Exam 3: Exploring Global Business

Quotas may be set on worldwide imports or on imports from a specific country.

Correct AnswerverifiedShow Answer

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is ____ suits.

Correct AnswerverifiedShow Answer

The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n)

Correct AnswerverifiedShow Answer

Political considerations usually are involved in a country's decision to impose a trade embargo.

Correct AnswerverifiedShow Answer

Strategic alliances and ____ are very similar.

Correct AnswerverifiedShow Answer

Arguments for the government imposing restrictions on foreign trade include

Correct AnswerverifiedShow Answer

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which agency should the managers at Lynn Bernerd, Inc. seek assistance from?

Correct AnswerverifiedShow Answer

U.S. trade restrictions benefit only a few industries while harming many others.

Correct AnswerverifiedShow Answer

Lynn Bernerd, Inc. Lynn Bernerd, Inc., manufactures and sells reclining furnitur -Refer to Lynn Bernerd, Inc. Which of the following options is not one of the steps needed for entering an international market?

Correct AnswerverifiedShow Answer

A small country is just beginning its international trade activities. In so doing, it wants to ____ and to develop a favorable balance of trade.

Correct AnswerverifiedShow Answer

The total value of a nation's exports minus the total value of its imports is known as the balance of payments.

Correct AnswerverifiedShow Answer

One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedIf a country has a continual deficit in ...View AnswerShow Answer

When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people in London, England, the company

Correct AnswerverifiedShow Answer

If South Africa were to trade diamonds to the United States in exchange for heavy machinery, these countries would execute a(n)

Correct AnswerverifiedShow Answer

Countertrade is losing its importance in international trade.

Correct AnswerverifiedShow Answer

When was GATT first established?

Correct AnswerverifiedShow Answer

Arguments for imposing trade restrictions include

Correct AnswerverifiedShow Answer

​Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedDumping is the exportation of large quan...View AnswerShow Answer

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If a country has a continual deficit in ...
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Germany is experiencing balance-of-payment deficits and needs a short-term loan. It will most likely turn to _____ for the loan.

Correct Answer
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Correct Answer
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Dumping is the exportation of large quan...
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