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3 Chapter Test Name: Robert Brown Started: July 7, 2007 12:57am Attempt: 1 / 1 Finished: July 7, 2007 2:31am Out of: 100 Time spent: 1 hr, 33 min., 46 sec. Student finished 26 min. 14 sec. ahead of the 120 min. time limit. Question 1 (2 points) A letter of credit is issued "in favor of the importer." Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 2 (2 points) A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n) Student response: Percent Value 0.0% 100.0% 0.0% 0.0% 0.0% Correct Response Student Response Answer Choices a. c. e. import deficit. import duty. import tariff. b. import quota. d. trade embargo. Score: 2/2 Question 3 (2 points) Absolute advantage is the ability to produce a specific product more efficiently than any other nation. Student response: Percent Value 100.0% 0.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 4 (2 points) Bob complained that it took some time to locate a distributor of an imported light bulb that he had to replace. He was further annoyed that he had to pay an artificially high price. When asked for his opinion, Bob would probably argue Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 100.0% 0.0% a. for tourism. b. for exports. c. against international free trade associations. d. against trade restrictions. e. for the trade deficit. Score: 2/2 Question 5 (2 points) When a business has plants located in several foreign countries, it is called a Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 100.0% 0.0% 0.0% a. joint venture. b. trading company. c. multinational enterprise. d. countertrade. e. licensing firm. Score: 0/2 Question 6 (2 points) What trend is occurring regarding the use of countertrade? Student response: Percent Correct Student Answer Choices Value Response Response 0.0% a. The volume of countertrade is shrinking quickly as countries regain their trust in foreign currencies. b. The impact of countertrade is slowly dwindling. c. Countertrade has never been very important in international trade. 0.0% 0.0% 100.0% 0.0% d. The volume of countertrade is growing. e. The overall volume of countertrade has remained steady. Score: 2/2 Question 7 (2 points) Most trading companies are involved in manufacturing or owning assets related to manufacturing. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 8 (2 points) A complete halt to trading with a particular nation or in a particular product is called a(n) Student response: Percent Value 0.0% 0.0% 0.0% 100.0% 0.0% Correct Response Student Response Answer Choices a. b. c. d. e. closure. barricade. stay. embargo. stoppage. Score: 2/2 Question 9 (2 points) One of the problems with licensing as a method of achieving international business is that it is a much more difficult procedure to implement than the other methods. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 10 (2 points) The United States has enjoyed a trade surplus during the last eighteen years. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 11 (2 points) The "payments" portion of the balance of payments--that is, payments made by the United States-- does not include Student response: Percent Value 0.0% 0.0% 100.0% 0.0% 0.0% Correct Response Student Response Answer Choices a. imports. b. investments. c. exports. d. foreign aid. e. military spending. Score: 0/2 Question 12 (2 points) Quotas may be set on worldwide imports or on imports from a specific country. Student response: Percent Value 100.0% 0.0% Correct Response Student Response Answer Choices a. b. T F Score: 0/2 Question 13 (2 points) The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in Student response: Percent Value 0.0% 0.0% 0.0% Correct Response Student Response Answer Choices a. b. c. tariffing. deficit trading. exporting. 0.0% 100.0% d. e. dumping. importing. Score: 2/2 Question 14 (2 points) Forming a joint venture with an existing foreign company offers all of the following advantages except Student response: Percent Correct Student Answer Choices Value Response Response 100.0% a. requiring less commitment from all parties involved in the joint venture. b. providing reduced risk. c. providing control over product attributes. d. joining an established firm. e. providing immediate marketing knowledge. 0.0% 0.0% 0.0% 0.0% Score: 2/2 Question 15 (2 points) Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n) Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 100.0% 0.0% 0.0% 0.0% a. restriction of trade. b. nontariff barrier. c. non-monetary restriction. d. embargo. e. import duty. Score: 2/2 Question 16 (2 points) A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped. Student response: Percent Value Correct Response Student Response Answer Choices 0.0% 100.0% a. b. T F Score: 2/2 Question 17 (2 points) At present, the United States has an embargo against Cuba in effect because Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 100.0% a. Cuban products are too difficult to use. b. Cuba will not adopt a capitalist government. c. Cuba has an embargo on American products. d. the two countries have extremely poor political relations. e. products from Cuba are in higher demand than American-made products. 0.0% Score: 2/2 Question 18 (2 points) Ford Motor Company, Mazda Motor Corporation, and Matsushita Electrical Industrial Company formed a __________ to make heating and cooling units in Japan for Mazda cars beginning in 1988. The new company's heating and cooling units may also be used in Ford's cars. Student response: Percent Value 0.0% 0.0% 0.0% 0.0% 100.0% Correct Response Student Response Answer Choices a. licensing agreement b. sales branch c. sole proprietorship d. subsidiary e. joint venture Score: 2/2 Question 19 (2 points) __________ is the ability to produce a specific product more efficiently than any other product. Student response: Percent Value Correct Student Answer Choices Response Response 0.0% 0.0% 0.0% 0.0% 100.0% a. Dominant advantage b. Specialization c. Absolute advantage d. Relative advantage e. Comparative advantage Score: 2/2 Question 20 (2 points) It is appropriate for a country to impose trade restrictions on exports that might endanger its national security. Student response: Percent Value 100.0% 0.0% Correct Response Student Response Answer Choices a. b. T F Score: 0/2 Question 21 (2 points) Purchasing products or materials in other nations and bringing them into one's own country is Student response: Percent Value 0.0% 0.0% 0.0% 100.0% 0.0% Correct Response Student Response Answer Choices a. b. c. d. e. balancing. exporting. dumping. importing. trading. Score: 2/2 Question 22 (2 points) Ben Schumpert decides his company will start exporting and he wants to start at the most basic level. What action should Ben take to meet his objectives? Student response: Percent Correct Student Answer Choices Value Response Response 100.0% 0.0% 0.0% a. Sell its products to an export/import merchant. b. Open new facilities around the world. c. Contact Sears World Trade to find foreign consumers. 0.0% d. Form a joint venture with a complementary company in a foreign country. e. License his brand name and products to foreign manufacturers. 0.0% Score: 2/2 Question 23 (2 points) A __________ is a partnership formed to achieve a specific goal or to operate for a specific period of time. Student response: Percent Value 0.0% 0.0% 0.0% 100.0% 0.0% Correct Student Answer Choices Response Response a. countertrade agreement b. licensing company c. trading company d. joint venture e. strategic alliance Score: 2/2 Question 24 (2 points) A reduction of the value of a nation's currency relative to the currencies of other countries is called a Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 100.0% 0.0% a. deficit money market. b. None of these answers is correct. c. reduced exchange rate. d. currency devaluation. e. compressed economy. Score: 2/2 Question 25 (2 points) After the sharp drop in oil prices, the U.S. Congress considered enacting a tariff on imported oil. According to proponents, such a tariff would do all of the following except Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 100.0% 0.0% 0.0% a. prop up a sagging domestic oil industry. b. help reduce the federal budget deficit. c. help strengthen the foreign trade deficit. d. create a trade restriction. e. help cut the foreign trade deficit. Score: 2/2 Question 26 (2 points) In addition to political considerations, all of the following are reasons for trade restrictions except to Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 0.0% 100.0% a. protect the health of citizens. b. protect national security. c. equalize a nation's balance of payments. d. protect new and weak industries. e. All of the answers are correct. Score: 2/2 Question 27 (2 points) Which of the following best defines balance of trade? Student response: Percent Correct Student Choices Answer Value Response Response 0.0% a. Purchasing products in other country's and bringing them into one's own country. b. The ability to specialize in the production of a specific product and trade it for other needed products. c. The total value of a nation's exports minus the total value of its imports, 0.0% 100.0% over some period of time. 0.0% d. The total flow of money into the country minus the total flow of money out of the country, over some period of time. e. The ability to produce a certain product more efficiently than any other nation. 0.0% Score: 2/2 Question 28 (2 points) A __________ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary. Student response: Percent Value 0.0% 100.0% 0.0% 0.0% 0.0% Correct Response Student Response Answer Choices a. b. c. d. e. voucher letter of credit draft license bill of lading Score: 2/2 Question 29 (2 points) Because Saudi Arabia and Australia have __________, Saudi Arabia can specialize in the production of crude oil and petroleum products and Australia can specialize in the production of wool. Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 100.0% 0.0% 0.0% 0.0% a. a comparative advantage b. an absolute advantage c. very low labor costs d. an effective manufacturing system e. a company advantage Score: 2/2 Question 30 (2 points) Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for their many wineries. Which statement about Chablis is true? Chablis has Student response: Percent Correct Student Answer Choices Value Response Response 100.0% 0.0% a. an absolute advantage in the production of wine. b. a comparative advantage in timber and oil production. c. an absolute advantage in timber and oil production. d. a comparative advantage in wine production. e. no comparative or absolute advantages. 0.0% 0.0% 0.0% Score: 2/2 Question 31 (2 points) The U.S. government imposes a tax on imported automobiles from Japan, Korea, Germany, and other foreign nations to increase government funds. This is best described as a(n) Student response: Percent Value 0.0% 0.0% 100.0% 0.0% 0.0% Correct Response Student Response Answer Choices a. protective tariff. b. dumping duty. c. revenue tariff. d. excise tax. e. import quota. Score: 2/2 Question 32 (2 points) A tax that is levied on a foreign product entering a country is called an export tariff. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 33 (2 points) What has been true of the United States' balance of payments since about 1992? The United States has Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% a. enjoyed a positive balance of payments. b. sold its products to foreign nations but has not purchased foreign products. c. been about even on its overall balance of payments. d. decreased its amount of international trading with other nations. e. suffered a deficit balance of payments. 0.0% 0.0% 100.0% Score: 2/2 Question 34 (2 points) When a country imports more than it exports, it has a(n) Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 100.0% 0.0% a. trade surplus. b. favorable balance of trade. c. favorable exchange role. d. unfavorable balance of trade. e. favorable balance of payments. Score: 2/2 Question 35 (2 points) Japanese tourists come to experience the magic of Disney World and other attractions around Orlando, Florida. These tourists are Student response: Percent Correct Student Answer Choices Value Response Response 100.0% 0.0% a. helping the U.S.'s balance of payments. b. further decreasing the U.S.'s balance of payments. c. exporting products and services back to Japan. 0.0% 0.0% d. helping increase the balance of payments for Japan. e. contributing to the United States' deficit balance of payments. 0.0% Score: 2/2 Question 36 (2 points) Countertrade is an international barter transaction in which Student response: Percent Correct Student Answer Choices Value Response Response 0.0% a. one company manufactures and the other company owns the assets. b. the buyers and sellers trade illegally. c. one company sells goods and services under the counter. d. goods and services are exchanged for different goods and services. e. None of these answers is correct. 0.0% 0.0% 100.0% 0.0% Score: 2/2 Question 37 (2 points) If a country imports more than it exports, its balance of trade is said to be favorable. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 38 (2 points) The Kingdom of Mocha enjoys no absolute advantage in crude oil, diamonds, or wool. However, the Mochans manufacture high-quality bows and arrows. Which statement about the Mochans is true? Student response: Percent Correct Student Answer Choices Value 0.0% Response Response a. The Mochans should try to produce their own crude oil, diamonds, and wool. b. The Mochans are engaged in dumping bows and arrows. c. The Mochans have a determined advantage in the production of arrows. d. The Mochans have a comparative advantage in the production of bows and arrows. e. The Mochans have an unqualified advantage in the production of bows and arrows. 0.0% 0.0% 100.0% 0.0% Score: 2/2 Question 39 (2 points) A __________ is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise. Student response: Percent Value 0.0% 100.0% 0.0% 0.0% 0.0% Correct Response Student Response Answer Choices a. b. c. d. e. license draft bill of lading voucher letter of credit Score: 2/2 Question 40 (2 points) France, Bolivia, and Taiwan Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 100.0% a. do not have a comparative advantage in any product. b. have a comparative advantage in some products. c. have a comparative advantage in five products. 0.0% 0.0% d. have an absolute advantage in three out of four products. e. have an absolute advantage in most products. 0.0% Score: 0/2 Question 41 (2 points) If Proctor & Gamble and Reckitt & Colman, makers of Lysol, form a partnership to develop and distribute a disinfectant line of laundry detergent, the partnership would be a(n) Student response: Percent Value 0.0% 0.0% 0.0% 0.0% 100.0% Correct Response Student Response Answer Choices a. corporation. b. licensing agreement. c. international alliance. d. monopoly. e. joint venture. Score: 2/2 Question 42 (2 points) When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc., of the United States, Sony made a(n) Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 0.0% 100.0% a. strategic alliance with Columbia Pictures. b. exporting agreement with the United States. c. indirect investment in the United States. d. countertrade with Columbia Pictures. e. direct investment in the United States. Score: 0/2 Question 43 (2 points) A developing country found that to meet its needs the previous year, it had imported far more goods than it exported. This country experienced a(n) Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 100.0% 0.0% 0.0% 0.0% a. unfavorable supply of goods. b. unfavorable balance of trade. c. favorable balance of payments. d. unfavorable balance of payments. e. favorable balance of trade. Score: 2/2 Question 44 (2 points) International business includes all business activities that involve exchanges across state boundaries. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 45 (2 points) A(n) __________ will, for a commission or fee, arrange the sale of a company's products to foreign intermediaries. Student response: Percent Value 100.0% 0.0% 0.0% 0.0% 0.0% Correct Student Answer Choices Response Response a. export/import agent b. trading broker c. joint venture d. export/import merchant e. international bank Score: 2/2 Question 46 (2 points) Comparative advantage is the ability to produce a specific product more efficiently than any other nation. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 47 (2 points) By definition, every country has a(n) __________ advantage in some product. Student response: Percent Value 0.0% 0.0% 0.0% 0.0% 100.0% Correct Response Student Response Answer Choices a. b. c. d. e. inferior absolute superior relative comparative Score: 2/2 Question 48 (2 points) Another name for an import duty is Student response: Percent Value 0.0% 0.0% 0.0% 100.0% 0.0% Correct Response Student Response Answer Choices a. b. c. d. e. devaluation. quota. limitation. tariff. embargo. Score: 2/2 Question 49 (2 points) The total flow of money into a country less the total flow of money out of the country over some period of time is called the nation's balance of trade. Student response: Percent Value 0.0% 100.0% Correct Response Student Response Answer Choices a. b. T F Score: 2/2 Question 50 (2 points) If the Korean government charged tariffs on Japanese automobiles and in turn the Japanese government put tariffs on Korean automobiles, Japan's major rationale for imposing these tariffs would be to Student response: Percent Correct Student Answer Choices Value Response Response 0.0% 0.0% 0.0% 0.0% 100.0% a. protect an infant industry. b. protect domestic jobs. c. lower prices for consumers. d. protect national security. e. retaliate for Korea's tariffs. Score: 0/2 Total score: 86 / 100 = 86.0% ... View Full Document

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