Question 1

What are products that are created domestically and transported for sale abroad?
A) Dumped goods
B) Exports
C) Imports
D) Buy backs
E) Domestic goods

Accepted Answer

B)Exports are goods that are made in a country and sold in another country.

Question 2

Which of the following resulted from NAFTA?
A) Companies from other countries, such as Japan, have made fewer business investments in North America.
B) U.S. exports to Mexico have decreased.
C) Mexican imports to the United States have increased.
D) More jobs have been created than what was originally predicted.
E) More U.S. jobs were eliminated than what was originally predicted.

Accepted Answer

C)Many positive predictions regarding what would result from NAFTA have materialized. Mexico can export cars without tariffs to North and South America, Europe and Japan.

Question 3

Under which of the following treaties are Canada, the United States, and Mexico gradually eliminating tariffs and all other trade barriers?
A) The EURO Agreement
B) The Pan-American Agreement
C) The North American Free Trade Agreement
D) The General Agreement on Tariffs and Trade
E) The G-3 Free Trade Agreement

Accepted Answer

C)NAFTA removed some trade barriers between the United States, Canada, and Mexico in 1994.

Question 4

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Accepted Answer

The WTO is empowered to promote trade by encouraging members to adopt fair trade practices, to reduce trade barriers by promoting multilateral agreements and to establish fair procedures for resolving disputes among members.

Question 5

What are products that are created abroad and then transported and sold domestically?
A) Dumped goods
B) Exports
C) Imports
D) Buy backs
E) Domestic goods

Accepted Answer

C)Imports are goods that are brought in from other countries.

Question 6

An import is a product made or grown abroad but sold domestically.

Accepted Answer

Countries import goods from other countries that are meant to be sold within the home country.

Question 7

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?
A) United Nations Development Assistant Plan
B) North American Free Trade Agreement
C) General Agreement on Tariffs and Trade
D) General Agreement on Trade in Services
E) European Union Stability and Growth Pact

Accepted Answer

C)GATT's purpose is to reduce or eliminate trade barriers by encouraging nations to protect domestic industries within agreed-upon limits and to engage in multilateral negotiations.

Question 8

Which organization was developed to promote economic and cultural cooperation among Asian countries?
A) ASEAN
B) UAS
C) EU
D) NAFTA
E) ECOWAS

Accepted Answer

A)The Association of South East Asian Nations is the economic association of nations in that region.

Question 9

NAFTA regulates trade between the United States, Europe, and Japan.

Accepted Answer

The North American Free Trade Agreement regulates trade between the United States, Canada, and Mexico.

Question 10

What caused manufacturing jobs to move from Mexico to China in the late 1990s?
A) Increases in Mexico's cost of living and wages
B) Modernization of facilities in China
C) Improved international travel abilities
D) Increased use of technology in China
E) Higher levels of education and professional jobs in Mexico

Accepted Answer

A)In the late 1990s, cost of living and wages increased in Mexico, and many companies moved their manufacturing to China, where wages were one-third of those in Mexico.

Question 11

Which organization created the classification of countries based on per capita income?
A) The World Bank
B) The World Trade Organization
C) The International Monetary Fund
D) The European Union
E) The North American Free Trade Agreement

Accepted Answer

A)The World Bank, an agency of the United Nations, uses per capita income to make distinctions among countries.

Question 12

What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region?
A) SEATO
B) ASEAN
C) CENTO
D) OAS
E) WTO

Accepted Answer

B)The members of the Association of Southeast Asian Nations (ASEAN)include Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Economically, ASEAN is much smaller than NAFTA and the EU.

Question 13

Where is the world's largest free marketplace?
A) North America
B) South America
C) Southeast Asia
D) Europe
E) Middle East

Accepted Answer

D)With the formation of the European Union, all internal trade barriers were eliminated, making the EU the largest free marketplace in the world.

Question 14

How does globalization of business benefit shareholders of an organization?
A) Through easier and faster international travel
B) Through the elimination of dieses in developing nations
C) Through increased and improved profitability
D) Through lower taxes between trade partners
E) Through more distinct cultural heritage

Accepted Answer

C)Globalization benefits businesses and shareholders through the potential for higher standards of living and increased profitability, although the benefits tend not to reach poor and developing nations.

Question 15

Which country is the world's largest marketplace and most stable economy?
A) The United States
B) Canada
C) Germany
D) Japan
E) China

Accepted Answer

A)The United States is the world's largest marketplace and most stable economy.

Question 16

Which country in the Pacific Asia region has one of the world's largest economies?
A) South Korea
B) China
C) Indonesia
D) Japan
E) Taiwan

Accepted Answer

B)China, one of the world's most densely populated countries, has become one of the world's largest economies, even with a low per capita income level.

Question 17

Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of its imports?
A) Balance of foreign competition
B) Balance of domestic competition
C) Balance of trade
D) Balance of payments
E) Balance of supply and demand

Accepted Answer

C)Balance of trade represents the economic value of all exported products minus the value of imported products.

Question 18

The World Trade Organization (WTO)was created to encourage international trade.

Accepted Answer

The WTO was created to encourage international trade by encouraging fair trade practices, breaking down trade barriers, and establishing fair procedures for dispute resolution.

Question 19

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Accepted Answer

GATT's purpose is to reduce or eliminate trade barriers, such as tariffs and quotas; it does so by encouraging nations to protect domestic industries within agreed-upon limits and to engage in multilateral negotiations.

Question 20

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

Accepted Answer

Globalization refers to the process by which countries are working together interactively to eliminate trade barriers in an attempt to create a larger free market.

Quiz 4: Understanding the Global Context of Business

What are products that are created domestically and transported for sale abroad?

Which of the following resulted from NAFTA?

Under which of the following treaties are Canada, the United States, and Mexico gradually eliminating tariffs and all other trade barriers?

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

What are products that are created abroad and then transported and sold domestically?

An import is a product made or grown abroad but sold domestically.

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?

Which organization was developed to promote economic and cultural cooperation among Asian countries?

NAFTA regulates trade between the United States, Europe, and Japan.

What caused manufacturing jobs to move from Mexico to China in the late 1990s?

Which organization created the classification of countries based on per capita income?

What organization was founded in 1967 for economic, political, social, and cultural cooperation in the Asia Pacific region?

Where is the world's largest free marketplace?

How does globalization of business benefit shareholders of an organization?

Which country is the world's largest marketplace and most stable economy?

Which country in the Pacific Asia region has one of the world's largest economies?

Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of its imports?

The World Trade Organization (WTO)was created to encourage international trade.

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Globalization refers to the process by which countries around the world are becoming more self-sufficient.