Question 1

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

Accepted Answer

A)  Embargo
B)  Duty
C)  Dumping
D)  Export quota
E)  DroppingF) A) and B)
G) B) and D)

Question 2

A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The company wants to maintain control over its sales while gaining experience in foreign markets. Which option would be best for this company?

Accepted Answer

A)  Licensing its products for sale in foreign countries
B)  Selling its products outright to an export/import merchant
C)  Establishing its own sales offices in foreign countries
D)  Developing totally owned facilities in a foreign market
E)  Hiring an export/import agent to assist with foreign salesF) C) and D)
G) D) and E)

Question 3

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Accepted Answer

A) True 
 B)False

Question 4

A complete halt to trading with a particular nation or in a particular product is called a(n)

Accepted Answer

A)  embargo.
B)  stoppage.
C)  stay.
D)  closure.
E)  barricade.F) D) and E)
G) A) and B)

Question 5

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

Accepted Answer

A)  They will be faced with the highest demand ever.
B)  They will become more competitive.
C)  They will be put out of business because they cannot compete with the prices.
D)  They will try to dump their toys in other countries.
E)  Their revenues will decrease, but their long-term success will not be affected.F) A) and E)
G) B) and E)

Question 6

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Accepted Answer

A) True 
 B)False

Question 7

Another name for an import duty is a(n)

Accepted Answer

A)  tariff.
B)  embargo.
C)  devaluation.
D)  quota.
E)  limitation.F) B) and D)
G) All of the above

Question 8

Define tariff. What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

Accepted Answer

A tariff, also known as an import duty, ...

Question 9

The IDB, ADB, and EBRD are all examples of

Accepted Answer

A)  community banks.
B)  foreign banks.
C)  economic communities.
D)  world trade organizations.
E)  multilateral development banks.F) B) and E)
G) C) and E)

Question 10

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Accepted Answer

A)  A multilateral development bank
B)  The International Development Bank
C)  An international bank
D)  The Federal Reserve
E)  The International Monetary FundF) A) and E)
G) A) and B)

Question 11

Least-favored-nation (LFN) status was the famous principle of GATT.

Accepted Answer

A) True 
 B)False

Question 12

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Accepted Answer

A)  monetary export control.
B)  nontariff barrier.
C)  currency devaluation.
D)  currency control.
E)  foreign-exchange control.F) D) and E)
G) A) and D)

Question 13

The United States does not sell fighter jets, such as F-16s, to Libya. The rationale for this restriction is most likely to

Accepted Answer

A)  protect national security.
B)  protect domestic jobs.
C)  protect the health of its citizens.
D)  retaliate for Libya's trade restrictions.
E)  protect domestic manufacturers.F) A) and E)
G) A) and B)

Question 14

Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?

Accepted Answer

A)  The Export-Import Bank of the United States
B)  The MDB
C)  The European Bank for Reconstruction and Development
D)  The Inter-American Development Bank
E)  The International Monetary FundF) A) and B)
G) B) and E)

Question 15

Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?

Accepted Answer

A)  It is extremely likely because almost all U.S.companies export their products and services to foreign countries.
B)  It is quite likely because about 75 percent of all companies in the United States are now exporters due to the growth of the Internet.
C)  Roughly half of U.S.companies export products and services, so there is about a 50 percent chance that Jacque's company exports.
D)  About one-third of the companies in the United States export to foreign countries, therefore Jacque's company has about a 33 percent chance of being an exporter.
E)  Despite use of the Internet, exporting is still mostly done by large corporations, so Jacque's company is unlikely to export.F) A) and B)
G) A) and C)

Question 16

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Accepted Answer

A) True 
 B)False

Question 17

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Accepted Answer

A) True 
 B)False

Question 18

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Accepted Answer

A) True 
 B)False

Question 19

Foreign licensing is similar to

Accepted Answer

A)  starting from scratch.
B)  franchising.
C)  wholesaling.
D)  establishing a subsidiary in another country.
E)  establishing a sales office in a foreign country.F) C) and D)
G) B) and E)

Question 20

When it built production lines in the United States, BMW engaged in what type of international expansion?

Accepted Answer

A)  Totally owned facilities
B)  Joint venture
C)  Strategic alliance
D)  Indirect investment
E)  ExportingF) All of the above
G) D) and E)

Exam 3: Exploring Global Business

When it built production lines in the United States, BMW engaged in what type of international expansion?

Correct Answer
verified

Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?

Correct Answer
verified

Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?

Correct Answer
verified

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

Correct Answer
verified

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Correct Answer
verified

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Correct Answer
verified

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Correct Answer
verified

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Correct Answer
verified

Another name for an import duty is a(n)

Correct Answer
verified

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Correct Answer
verified

The IDB, ADB, and EBRD are all examples of

Correct Answer
verified

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct Answer
verified

The United States does not sell fighter jets, such as F-16s, to Libya. The rationale for this restriction is most likely to

Correct Answer
verified

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Correct Answer
verified

Foreign licensing is similar to

Correct Answer
verified

Define tariff. What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

Correct Answer
verified
A tariff, also known as an import duty, ...
View Answer

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

Correct Answer
verified

Least-favored-nation (LFN) status was the famous principle of GATT.

Correct Answer
verified

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Correct Answer
verified

Correct Answer
verified

Exam 3: Exploring Global Business

When it built production lines in the United States, BMW engaged in what type of international expansion?

Correct AnswerverifiedShow Answer

Jacque owns a medium-sized business in the United States. Approximately how likely is it that her company exports?

Correct AnswerverifiedShow Answer

Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central European countries?

Correct AnswerverifiedShow Answer

Taiwanese manufacturers are dumping toys in Germany. What will happen to German toy manufacturers if the German government allows this dumping to continue?

Correct AnswerverifiedShow Answer

A restriction on the amount of a particular foreign currency that can be purchased or sold is a

Correct AnswerverifiedShow Answer

An important and practical issue for domestic firms dealing with foreign customers is securing payment.

Correct AnswerverifiedShow Answer

A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

Correct AnswerverifiedShow Answer

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

Correct AnswerverifiedShow Answer

Another name for an import duty is a(n)

Correct AnswerverifiedShow Answer

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

Correct AnswerverifiedShow Answer

The IDB, ADB, and EBRD are all examples of

Correct AnswerverifiedShow Answer

A complete halt to trading with a particular nation or in a particular product is called a(n)

Correct AnswerverifiedShow Answer

The United States does not sell fighter jets, such as F-16s, to Libya. The rationale for this restriction is most likely to

Correct AnswerverifiedShow Answer

____ is an internationally supported bank that provides loans to developing countries to help them grow.

Correct AnswerverifiedShow Answer

Foreign licensing is similar to

Correct AnswerverifiedShow Answer

Define tariff. What effect does a tariff have on the price of a product in the country imposing the tariff? Why would a tariff be used?

Correct AnswerverifiedA tariff, also known as an import duty, ...View AnswerShow Answer

____ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.

Correct AnswerverifiedShow Answer

Least-favored-nation (LFN) status was the famous principle of GATT.

Correct AnswerverifiedShow Answer

A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A tariff, also known as an import duty, ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified