Question 1

​_____ is the solicitation of money for favorable treatment.

Accepted Answer

The answer of ​_____ is the solicitation of money for...

Question 2

The purpose of the General Agreement on Tariffs and Trade (GATT) was to:

Accepted Answer

The GATT was created to promote international trade by reducing trade barriers such as tariffs and quotas. It aimed to create a more open and fair global trading system, which would encourage worldwide trade.

Question 3

The _____ influences the global economy by providing technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education.

Accepted Answer

The World Bank provides technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education, therefore influencing the global economy. The International Monetary Fund focuses on promoting international monetary cooperation, exchange stability, and economic growth, while the World Trade Organization deals with the global rules of trade between nations. The General Agreement on Tariffs and Trade was replaced by the World Trade Organization in 1995.

Question 4

Decisions of the World Trade Organization in settling trade disputes:

Accepted Answer

The decisions of the World Trade Organization in settling trade disputes are binding on all parties involved in the dispute, meaning that member nations are required to abide by them.

Question 5

If the king and the political leaders of Lesotho, an agrarian economy, made decisions that sank the kingdom into unmanageable debt through loans it could not hope to repay, which international body would the king approach for debt forgiveness?

Accepted Answer

The International Monetary Fund (IMF) is an international organization that provides loans to countries experiencing economic difficulties in order to stabilize their economies. Therefore, if Lesotho's leaders have sunk the kingdom into unmanageable debt, the IMF would be the most likely international body to provide debt forgiveness or assistance in restructuring the kingdom's economy. The other options (A: The International Finance Corporation, B: The International Bank for Reconstruction and Development, and D: The World Bank) do provide financial assistance to developing countries, but their focus is different from that of the IMF.

Question 6

_____ is the solicitation of money for favorable treatment.

Accepted Answer

The answer of _____ is the solicitation of money for...

Question 7

​Identify a government use of protective tariffs.

Accepted Answer

Protective tariffs are often used by governments to shelter fledgling industries that cannot compete with established foreign industries without some kind of government assistance. By imposing tariffs, the government makes it more expensive for consumers to purchase imported goods and therefore makes domestic goods more competitive. This allows local businesses to grow and develop without being undercut by international competitors.

Question 8

The International Monetary Fund (IMF) implemented a debt relief program to benefit _____.

Accepted Answer

The IMF's debt relief program was implemented to benefit poor countries, specifically those with high levels of debt and limited capacity to repay it. It aimed to provide these countries with relief from their debt burden, allowing them to redirect resources towards important social and economic investments.

Question 9

In 2002, the U.S. steel industry lobbied the U.S. government to impose a tax on the importation of foreign­produced steel to make the foreign steel more expensive. The barrier to international trade in this scenario is a(n) _____.

Accepted Answer

The U.S. government imposing a tax on the importation of foreign-produced steel to make it more expensive is a clear indication of a tariff being levied. An embargo completely prohibits trade with a specific country, a sponge tax is not a term used in international trade, and a quota limits the quantity of imports allowed.

Question 10

​Free trade:

Accepted Answer

Free trade refers to the unrestricted movement of goods and services across international borders, without government-imposed barriers such as tariffs, quotas or subsidies. It is an economic policy that allows for increased competition, specialization, and lower prices for consumers. Option A refers to export, which involves some risk and control. Option B refers to the balance of payments, which is a financial record of a country's international transactions. Option D refers to bribery, which is illegal and unethical.

Question 11

Dash of Style, a leather products company in the U.S, imported leather goods worth $ 10,000 from China. When the consignment reached the U.S, the company had to pay a(n) _____ on the imports.

Accepted Answer

A tariff is a tax imposed on imported goods. In this case, since Dash of Style imported leather goods from China, they would be required to pay a tariff upon the arrival of the goods in the U.S.

Question 12

​Requiring red­tape­intensive import licenses for certain categories is an example of a(n):

Accepted Answer

Requiring import licenses is an example of a nontariff barrier, which is a form of trade restriction that does not involve the levying of additional taxes or duties on imports.

Question 13

As producers of sophisticated military hardware, companies like Boeing and General Dynamics are restricted from exporting to nations such as Cuba and North Korea. This situation is an example of a(n) _____.

Accepted Answer

An embargo is a government-imposed restriction on trade for political purposes. In this case, the US government has imposed an embargo on nations like Cuba and North Korea, preventing companies like Boeing and General Dynamics from exporting military hardware to these countries. This is done for national security reasons and to prevent the countries from using the advanced military technology against the US or its allies.

Question 14

A member of the United States Congress representing Birmingham and the surrounding area is championing a bill in the Congress to increase tariffs on imported steel. The likely impact of the bill is that:

Accepted Answer

Increasing tariffs on imported steel would make it more expensive for U.S. companies to purchase steel from foreign markets. This will likely lead to a higher price of imported steel in the U.S. market. While it may provide some benefits to the domestic steel industry, it could also increase costs for U.S. businesses that rely on imported steel, potentially leading to higher prices for consumers. The bill would not necessarily improve the quality of steel in the U.S. market, increase the foreign exchange value of any currency, or reduce unemployment in the steel industry.

Question 15

​Promoting a "buy national" consumer attitude among local people is an example of:

Accepted Answer

Promoting a "buy national" consumer attitude is an attempt to control imports by encouraging consumers to choose domestic products instead of imported ones.

Question 16

One of the most important goals of the World Trade Organization is:

Accepted Answer

The goal of the World Trade Organization (WTO) is to promote free trade and reduce trade barriers between countries. One of the major obstacles to achieving this goal is piracy of intellectual property and unfair subsidies given to certain industries. To overcome this, one of the main functions of the WTO is to negotiate and enforce international trade agreements that target these issues. Therefore, controlling piracy of intellectual property and reducing subsidies are among the most important goals of the WTO.

Question 17

As the chief of strategy for Paradyme Software, Bill Fence has decided that the risks of software piracy in Indonesia are too high to justify a continued presence in that country. He feels that the nation's laws are not sufficiently strict. Bill Fence is unhappy with the _____ in Indonesia.

Accepted Answer

Bill Fence's decision to withdraw from Indonesia is based on his perception of their laws and their ability to enforce them, which falls under the political climate category. The other options, such as restrictions on international trade, economic differences, and infrastructure, are not mentioned as factors in his decision.

Question 18

Due to the rising price of gasoline, Sharon is looking for a car with better gas mileage. She hopes to purchase the newest Ford Fiesta, an imported car with hybrid technology. However, Fiestas are hard to find because the government in Sharon's country has limited the number of Fiesta cars that can be imported each year. Sharon is witnessing the impact of a(n) _____ imposed by her country.

Accepted Answer

A quota is a limit set by a government on the quantity of a product that can be imported into the country. In this scenario, the government has limited the number of Ford Fiesta cars that can be imported each year. A tariff is a tax on imported goods, and there is no mention of any tax being imposed on the Ford Fiesta. A voluntary export restriction is an agreement between two countries where one country agrees to limit the quantity of a product it exports to another country, and there is no mention of any such agreement in this scenario. An embargo is a ban on trade with a particular country or product, and there is no mention of any ban on the Ford Fiesta. Therefore, the best choice is B, quota.

Question 19

When the Congress of the United States passed an economic stimulus bill with the hope of jump starting the economy, one provision of the bill contained a "Buy American" provision. This provision is an example of a(n) _____.

Accepted Answer

The "Buy American" provision is an example of a nontariff barrier, which restricts trade through means other than tariffs, such as regulations, standards, and procurement rules. This provision requires that any materials or products used in the construction or maintenance of public works projects funded by the stimulus bill must be made in the US, unless they are not available domestically, or if using US-made materials would increase the cost of the project by more than 25%. This provision aims to protect domestic industries and jobs, but it may also limit competition and increase costs for consumers.

Question 20

Key infrastructure challenges to consider when entering a foreign market include:

Accepted Answer

Transportation, communication, and energy are essential components of infrastructure that are important to consider when entering a foreign market. These factors can impact the logistical feasibility of doing business in a particular market and ultimately impact potential profitability. While the other factors listed may also be important considerations, they are not necessarily infrastructure challenges.

Quiz 3: The World Marketplace: Business Without Borders

_____ is the solicitation of money for favorable treatment.

The purpose of the General Agreement on Tariffs and Trade (GATT) was to:

The _____ influences the global economy by providing technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education.

Decisions of the World Trade Organization in settling trade disputes:

If the king and the political leaders of Lesotho, an agrarian economy, made decisions that sank the kingdom into unmanageable debt through loans it could not hope to repay, which international body would the king approach for debt forgiveness?

_____ is the solicitation of money for favorable treatment.

Identify a government use of protective tariffs.

The International Monetary Fund (IMF) implemented a debt relief program to benefit _____.

In 2002, the U.S. steel industry lobbied the U.S. government to impose a tax on the importation of foreignproduced steel to make the foreign steel more expensive. The barrier to international trade in this scenario is a(n) _____.

Free trade:

Dash of Style, a leather products company in the U.S, imported leather goods worth $ 10,000 from China. When the consignment reached the U.S, the company had to pay a(n) _____ on the imports.

Requiring redtapeintensive import licenses for certain categories is an example of a(n) :

As producers of sophisticated military hardware, companies like Boeing and General Dynamics are restricted from exporting to nations such as Cuba and North Korea. This situation is an example of a(n) _____.

A member of the United States Congress representing Birmingham and the surrounding area is championing a bill in the Congress to increase tariffs on imported steel. The likely impact of the bill is that:

Promoting a "buy national" consumer attitude among local people is an example of:

One of the most important goals of the World Trade Organization is:

As the chief of strategy for Paradyme Software, Bill Fence has decided that the risks of software piracy in Indonesia are too high to justify a continued presence in that country. He feels that the nation's laws are not sufficiently strict. Bill Fence is unhappy with the _____ in Indonesia.

When the Congress of the United States passed an economic stimulus bill with the hope of jump starting the economy, one provision of the bill contained a "Buy American" provision. This provision is an example of a(n) _____.

Key infrastructure challenges to consider when entering a foreign market include:

Quiz 3: The World Marketplace: Business Without Borders

​_____ is the solicitation of money for favorable treatment.

The purpose of the General Agreement on Tariffs and Trade (GATT) was to:

The _____ influences the global economy by providing technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education.

Decisions of the World Trade Organization in settling trade disputes:

If the king and the political leaders of Lesotho, an agrarian economy, made decisions that sank the kingdom into unmanageable debt through loans it could not hope to repay, which international body would the king approach for debt forgiveness?

_____ is the solicitation of money for favorable treatment.

​Identify a government use of protective tariffs.

The International Monetary Fund (IMF) implemented a debt relief program to benefit _____.

In 2002, the U.S. steel industry lobbied the U.S. government to impose a tax on the importation of foreign­produced steel to make the foreign steel more expensive. The barrier to international trade in this scenario is a(n) _____.

​Free trade:

Dash of Style, a leather products company in the U.S, imported leather goods worth $ 10,000 from China. When the consignment reached the U.S, the company had to pay a(n) _____ on the imports.

​Requiring red­tape­intensive import licenses for certain categories is an example of a(n) :

As producers of sophisticated military hardware, companies like Boeing and General Dynamics are restricted from exporting to nations such as Cuba and North Korea. This situation is an example of a(n) _____.

A member of the United States Congress representing Birmingham and the surrounding area is championing a bill in the Congress to increase tariffs on imported steel. The likely impact of the bill is that:

​Promoting a "buy national" consumer attitude among local people is an example of:

One of the most important goals of the World Trade Organization is:

As the chief of strategy for Paradyme Software, Bill Fence has decided that the risks of software piracy in Indonesia are too high to justify a continued presence in that country. He feels that the nation's laws are not sufficiently strict. Bill Fence is unhappy with the _____ in Indonesia.

When the Congress of the United States passed an economic stimulus bill with the hope of jump starting the economy, one provision of the bill contained a "Buy American" provision. This provision is an example of a(n) _____.

Key infrastructure challenges to consider when entering a foreign market include:

_____ is the solicitation of money for favorable treatment.

Identify a government use of protective tariffs.

In 2002, the U.S. steel industry lobbied the U.S. government to impose a tax on the importation of foreignproduced steel to make the foreign steel more expensive. The barrier to international trade in this scenario is a(n) _____.

Free trade:

Requiring redtapeintensive import licenses for certain categories is an example of a(n) :

Promoting a "buy national" consumer attitude among local people is an example of: