Question 1

Japanese and Asian business people find fast, tough face-to-face bargaining ________.
A)normal
B)offensive
C)annoying
D)silly
E)necessary

Accepted Answer

In Japanese and Asian business cultures, fast and tough face-to-face bargaining is often considered offensive because it goes against the cultural norms of respect, harmony, and building relationships before conducting business.

Question 2

A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n)________ economy.
A)subsistence
B)raw material exporting
C)emerging
D)developed
E)industrial

Accepted Answer

The economy of the country is primarily based on the extraction and export of raw materials, specifically copper and tin. This is characteristic of a raw material exporting economy.

Question 3

Which of the following statements is true of industrial economies?
A)They export their goods to other types of economies for raw materials.
B)They have a declining middle class population.
C)They depend on agriculture as the primary revenue generator.
D)They do not trade goods amongst themselves.
E)They consume most of their output and barter the rest for simple goods and services.

Accepted Answer

Industrial economies typically have a strong manufacturing base and export their goods to other economies in exchange for raw materials. This allows them to maintain their industrial output and continue to grow their economy.

Question 4

Which of the following is true of free trade zones?
A)They are groups of nations organized to work toward common goals.
B)They were formed to increase trade barriers between member nations.
C)They were formed to mediate global trade disputes.
D)They require member countries to establish one currency.
E)They tend to improve imports and hinder exports.

Accepted Answer

Free trade zones are designed to increase trade and economic collaboration among member countries by reducing trade barriers, not to mediate disputes, establish a common currency, or specifically hinder exports.

Question 5

An emerging economy is one which ________.
A)imports large amounts of finished textiles and automobiles
B)offers few market opportunities for imported goods
C)consumes all or most of its output
D)needs few imports of raw textile materials and steel
E)has a rapid growth in manufacturing

Accepted Answer

An emerging economy is characterized by a rapid growth in manufacturing, as it transitions from primarily agrarian-based production to an industrialized base. This growth often leads to increased demand for raw materials and imports to support production. Options A and B describe closed economies, while option C describes a subsistence economy. Option D is inconsistent with the growth model of an emerging economy.

Question 6

Which of the following is true of the Uruguay Round of the WTO?
A)It promoted short-term global trade growth.
B)It increased the world's merchandise tariffs by 50 percent.
C)It reduced the influence of the WTO in agriculture.
D)It toughened the international protection of intellectual property.
E)It consisted of discussions that lasted for two years.

Accepted Answer

The Uruguay Round of the WTO toughened the international protection of intellectual property.

Question 7

Which of the following is true of raw material exporting economies?
A)These economies are major exporters of agricultural products.
B)These economies are poor markets for large equipment and trucks.
C)These economies are major exporters of manufactured goods, services, and investment funds.
D)These economies are rich in one or more resources but poor in other ways.
E)These economies consume most of their output and barter the rest.

Accepted Answer

Raw material exporting economies are rich in one or more natural resources but are often lacking in other areas such as infrastructure, technology, and diversification of industries. They rely heavily on the export of their raw materials and may struggle with balance of trade and vulnerability to changes in global demand and prices.

Question 8

Which of the following is true of the World Trade Organization (WTO)?
A)It was replaced by the GATT in 1995.
B)It was replaced by the GATT in 2000.
C)It lacks the power to impose international trade sanctions.
D)It restricts the maximum number of member nations to 100.
E)It mediates global trade disputes.

Accepted Answer

The World Trade Organization mediates disputes between member nations concerning international trade.

Answer: C
 The WTO lacks the power to impose international trade sanctions.

Question 9

An emerging economy is also known as a(n)________ economy.
A)industrializing
B)industrial
C)subsistence
D)raw material exporting
E)developed

Accepted Answer

An emerging economy refers to a country that is transitioning from a developing to a developed economy, undergoing rapid industrialization and economic growth. It is not yet classified as a developed economy (E), which has already achieved a high level of economic development, nor is it a raw material exporting economy (D) that primarily relies on the export of natural resources for economic growth. It is also not a subsistence economy (C), which refers to an economy where people mostly produce what they need to survive without significant trade or industry.

Question 10

Restrictive product standards are ________.
A)tariffs
B)excise duties
C)quotas
D)nontariff trade barriers
E)exchange controls

Accepted Answer

Restrictive product standards refer to regulations or requirements imposed by a country on imported goods, which make it more difficult and costly for foreign businesses to trade in that country. These are examples of non-tariff trade barriers, which include various regulations, standards, and procedures that limit trade. Therefore, the best choice for a restrictive product standard is D, nontariff trade barriers.

Question 11

Which of the following best characterizes a global firm?
A)A global firm typically operates from one country.
B)A global firm engages in joint partnerships overseas.
C)A global firm sees the world as many different markets.
D)A global firm maximizes the importance of national boundaries.
E)A global firm manufactures and markets goods wherever it can do the best job.

Accepted Answer

A global firm is one that operates in multiple countries and seeks to maximize its profits by manufacturing and marketing goods wherever it can do the best job. This means that it sees the world as a single market, rather than many different markets, and is not limited by national boundaries. Joint partnerships overseas may be one strategy that a global firm uses to enter new markets, but it is not a defining characteristic of a global firm.

Question 12

Which type of economy consumes most of its output and barters the rest for simple goods and services?
A)industrial economy
B)developed economy
C)subsistence economy
D)emerging economy
E)raw material exporting economy

Accepted Answer

A subsistence economy is characterized by consuming most of its output and only bartering the surplus for simple goods and services. This type of economy is typically found in rural, agricultural communities where people produce only what they need to survive and do not participate in large-scale trade or industrialization.

Question 13

Which of the following is an example of a nontariff trade barrier?
A)a sales tax
B)customs duty
C)a host-country regulation
D)excise duty
E)an import quota

Accepted Answer

A host-country regulation is an example of a nontariff trade barrier. These are regulations imposed by the government of the importing country that can restrict imports, such as health and safety standards, labeling requirements, or technical specifications. These regulations can create additional costs and barriers for foreign firms trying to enter a particular market.

Question 14

A subsistence economy is one in which ________.
A)much of the revenue comes from exporting one or more natural resources
B)fast growth in manufacturing results in overall economic growth
C)a majority of the produced outputs is exported
D)manufactured goods form a majority of the exports
E)a vast majority of people engage in simple agriculture

Accepted Answer

A subsistence economy is one in which the majority of people engage in simple agriculture to produce enough food and other basic necessities to survive, rather than relying on trade, industrialization or exports.

Question 15

One purpose of a quota is to ________.
A)protect local employment
B)provide competition to local industry
C)eliminate trade barriers between nations
D)increase the amount of foreign imports
E)increase the amount of foreign exchange

Accepted Answer

Quotas can be used to protect local employment by limiting the amount of foreign goods that can be imported, thereby reducing competition for domestic industries and protecting jobs.

Question 16

Which of the following established a free trade zone between the United States, Mexico, and Canada?
A)Union of South American Nations
B)European Union
C)North American Free Trade Agreement
D)Central American Free Trade Agreement
E)Latin American Free Trade Association

Accepted Answer

The North American Free Trade Agreement (NAFTA) established a free trade zone between the United States, Mexico, and Canada in 1994. The other options listed are regional trade agreements in South America and Europe, and do not include these three countries.

Question 17

Which type of economy consists mostly of households with very low family incomes?
A)post-industrial
B)developed
C)emerging
D)industrial
E)subsistence

Accepted Answer

The economy consisting mostly of households with very low family incomes would be a subsistence economy, where individuals and families produce goods and services primarily for their own consumption rather than for sale in the marketplace.

Question 18

Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semifinished goods. The country's industrial structure is referred to as a(n)________ economy.
A)agricultural
B)emerging
C)industrial
D)raw material exporting
E)subsistence

Accepted Answer

The passage mentions that Japan is a major exporter of manufactured goods, which indicates that its economy is industrial in nature. Option A, E and D are clearly not correct as they do not reflect the nature of Japan's economy. Option B, emerging economy, does not fit as Japan is considered a developed country with an established industrial base.

Question 19

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n)________.
A)exchange
B)excise
C)fine
D)quota
E)tariff

Accepted Answer

A tariff is a tax on imported products, which can be used to generate revenue for the government or protect domestic firms from competition with foreign companies.

Question 20

What type of transactions do most international trade involve?
A)cash
B)cheques
C)credit
D)IOUs
E)virtual banking accounts

Accepted Answer

The answer of What type of transactions do most international...

Quiz 16: The Global Marketplace

Japanese and Asian business people find fast, tough face-to-face bargaining ________.

Which of the following statements is true of industrial economies?

Which of the following is true of free trade zones?

An emerging economy is one which ________.

Which of the following is true of the Uruguay Round of the WTO?

Which of the following is true of raw material exporting economies?

Which of the following is true of the World Trade Organization (WTO) ?

An emerging economy is also known as a(n) ________ economy.

Restrictive product standards are ________.

Which of the following best characterizes a global firm?

Which type of economy consumes most of its output and barters the rest for simple goods and services?

Which of the following is an example of a nontariff trade barrier?

A subsistence economy is one in which ________.

One purpose of a quota is to ________.

Which of the following established a free trade zone between the United States, Mexico, and Canada?

Which type of economy consists mostly of households with very low family incomes?

Japan is a major exporter of manufactured goods, services, and investment funds. Japan also exports its goods to other types of economies for raw materials and semifinished goods. The country's industrial structure is referred to as a(n) ________ economy.

A tax on an imported product designed to raise revenue or protect domestic firms is referred to as a(n) ________.

What type of transactions do most international trade involve?