Question 1

When a Chinese company sells digital cameras in the U.S.below the price of domestically produced digital cameras, the company is following a practice called dumping.

Accepted Answer

The answer of When a Chinese company sells digital cameras...

Question 2

Which of the following is among possible advantages of membership in the European Union (EU)?
A)The EU allows unrestricted trade among member nations.
B)The EU permits anyone with an EU passport to work in any EU nation.
C)The EU guarantees starting salaries for government workers in any EU nation.
D)The EU enhances political and social cooperation among its members.

Accepted Answer

The answer of Which of the following is among possible...

Question 3

Which of the following remains a serious question about the effect of regional trade agreements around the world?
A)Are they moving the world closer to free trade on a global scale
B)Will their common currencies cause uncontrolled inflation in neighboring countries
C)Will more American jobs be lost over the long term
D)Will they foster political and economic equality

Accepted Answer

Regional trade agreements are often scrutinized for their impact on global trade dynamics, particularly whether they contribute to or detract from the goal of achieving free trade on a global scale.

Question 4

Scenario-Based
Yokahama Sports Equipment Ltd.is a successful manufacturer and distributor of sports equipment in the Far East, Australia, and Europe.Top management sees attractive opportunities in the U.S.market because of the stable economy and government.In addition, of course, Americans have disposable income to spend and are willing to buy imported goods.Yokahama executives realize, however, that entering the U.S.market can be difficult and that they'll need a well-planned strategy.
-If Australia were to put a monthly limit on some Yokahama imports, it would be using a trade practice called a quota.

Accepted Answer

A quota is a trade practice where a country sets a limit on the quantity or value of certain goods that can be imported over a specified period. In this scenario, if Australia were to limit the monthly imports of Yokahama sports equipment, it would be using a quota.

Question 5

_____ is a necessary step in gearing your undergraduate education toward a career in international business.
A)Developing real expertise in one of the basic areas of business
B)Developing your knowledge of international politics and economics
C)Developing foreign language skills
D)All of these

Accepted Answer

Developing real expertise in one of the basic areas of business, Developing your knowledge of international politics and economics, and Developing foreign language skills are all necessary steps in gearing your undergraduate education toward a career in international business. A combination of these skills and knowledge areas will prepare you for success in the field.

Question 6

Identify the various agreements and organizations that help to reduce international trade barriers.

Accepted Answer

The answer of Identify the various agreements and organizations that...

Question 7

If Yokahama tried to get a foot in the door of some foreign markets by pricing certain products lower than it would for its own domestic market, importing nations would see the tactic as an unfair trade practice.

Accepted Answer

Pricing products lower for foreign markets than for domestic markets is considered price discrimination, which is generally seen as an unfair trade practice. It can lead to resentment and retaliation from the affected countries.

Question 8

The U.S.government may try to keep Yokahama's prices more competitive with those of American?made goods by placing a tax, called an embargo, on Yokahama imports.

Accepted Answer

An embargo is a government order that restricts commerce or exchange with a specified country or the exchange of specific goods. A tariff is the correct term for a tax placed on imported goods to make them more expensive and competitive with domestic products.

Question 9

Which powerful trading bloc came about because of an agreement between the United States, Canada and Mexico?
A)EU (European Union)
B)MERCOSUR (for Mercado Commun del Sur)
C)NAFTA (North American Free Trade Association)
D)ASEAN (the Association of Southeast Asian Nations)

Accepted Answer

NAFTA (North American Free Trade Association) was formed in 1994 as an agreement between the United States, Canada, and Mexico to create a powerful trading bloc in North America.

Question 10

Although regional trade agreements exist around the world, we still don't have a solid answer to the question of whether they're moving the world closer to free trade on a global scale.
(

Accepted Answer

While regional trade agreements can increase trade between participating nations, it is still debated whether they are leading to greater global free trade or creating a patchwork of disparate trade rules and barriers.

Question 11

The two most important institutions that monitor international trade policies are _____.
A)NAFTA (North American Free Trade Association) and the World Bank
B)the World Bank and the EU (European Union)
C)GATT World Trade Organization)
D)WTO World Trade Organization) and NAFTA (North American Free Trade Association)

Accepted Answer

The World Trade Organization (WTO) is the primary international body that regulates and facilitates international trade, succeeding the General Agreement on Tariffs and Trade (GATT).

Question 12

Which of the following organizations is a powerful world trading block?
A)IMF - International Monetary Fund
B)NAFTA - North American Free Trade Association
C)WTO - World Trade Organization
D)WBG -World Bank Group

Accepted Answer

The answer of Which of the following organizations is a...

Question 13

If you were in charge of a developing country, where would you go for financial assistance?
A)The International Monetary Fund
B)World Trade Organization
C)The World Bank
D)both (a) and (c)

Accepted Answer

Both the International Monetary Fund (IMF) and the World Bank offer financial assistance to developing countries, with the IMF primarily focusing on providing short-term loans to stabilize a country's economy and the World Bank focusing on long-term infrastructure and development projects. Therefore, choosing both options (a) and (c) would provide a comprehensive range of financial resources to support the development of a country.

Question 14

Under NAFTA (North American Free Trade Association), the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____.
A)restrictions
B)taxes
C)job losses
D)currency devaluation

Accepted Answer

NAFTA eliminated most trade restrictions between the United States, Canada, and Mexico, allowing for free trade between the three countries.

Question 15

_____ do belong to the European Union.
A)Ireland and the United Kingdom
B)Spain and Portugal
C)Sweden, Denmark, and Finland
D)Norway and Switzerland

Accepted Answer

The answer of _____ do belong to the European Union.
A)Ireland...

Question 16

_____ is one of the purposes of the General Agreement on Tariffs and Trade.
A)Encouraging free trade
B)Regulating and reducing tariffs
C)Setting protectionist levels
D)Providing a forum for resolving trade disputes

Accepted Answer

The answer of _____ is one of the purposes of...

Question 17

With a troubled economy and the prospect of devastating economic times ahead, the Central European country of Westphalia should look to _____ for a major loan.
A)GATT General Agreement on Tariffs and Trade)
B)the International Monetary Fund
C)the World Bank
D)Citibank

Accepted Answer

The International Monetary Fund is a specialized agency of the United Nations that provides loans to countries facing economic difficulties. Given the troubled economy and prospect of devastating economic times, Westphalia would likely benefit from seeking a loan from the IMF. The other options listed, GATT, the World Bank, and Citibank, do not have the same level of experience or mandate for providing loans to countries facing economic crises.

Question 18

The euro, the common currency of the European Union, facilitates trade and finance by _____.
A)enabling different member economies to act as one
B)simplifying exchange rate differences
C)banning the U.S.dollar in member countries
D)guaranteeing economic stability to member nations

Accepted Answer

The answer of The euro, the common currency of the...

Question 19

If Yokahama turns to the WTO for the resolution of a dumping dispute, it runs the risk of the offended nation being authorized to set up its own trade barriers.

Accepted Answer

This is because if the WTO finds that dumping has occurred, the offended nation may be authorized to take measures to protect its domestic industries, including setting up trade barriers.

Question 20

Should dumping become an issue, Yokahama might turn to the WTO for resolution of the dispute.

Accepted Answer

The statement suggests that if dumping becomes an issue, Yokohama may seek resolution through the World Trade Organization (WTO).

Quiz 9: Business in a Global Environment

When a Chinese company sells digital cameras in the U.S.below the price of domestically produced digital cameras, the company is following a practice called dumping.

Which of the following is among possible advantages of membership in the European Union (EU) ?

Which of the following remains a serious question about the effect of regional trade agreements around the world?

_____ is a necessary step in gearing your undergraduate education toward a career in international business.

Identify the various agreements and organizations that help to reduce international trade barriers.

If Yokahama tried to get a foot in the door of some foreign markets by pricing certain products lower than it would for its own domestic market, importing nations would see the tactic as an unfair trade practice.

The U.S.government may try to keep Yokahama's prices more competitive with those of American?made goods by placing a tax, called an embargo, on Yokahama imports.

Which powerful trading bloc came about because of an agreement between the United States, Canada and Mexico?

Although regional trade agreements exist around the world, we still don't have a solid answer to the question of whether they're moving the world closer to free trade on a global scale. (

The two most important institutions that monitor international trade policies are _____.

Which of the following organizations is a powerful world trading block?

If you were in charge of a developing country, where would you go for financial assistance?

Under NAFTA (North American Free Trade Association) , the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____.

_____ do belong to the European Union.

_____ is one of the purposes of the General Agreement on Tariffs and Trade.

With a troubled economy and the prospect of devastating economic times ahead, the Central European country of Westphalia should look to _____ for a major loan.

The euro, the common currency of the European Union, facilitates trade and finance by _____.

If Yokahama turns to the WTO for the resolution of a dumping dispute, it runs the risk of the offended nation being authorized to set up its own trade barriers.

Should dumping become an issue, Yokahama might turn to the WTO for resolution of the dispute.