Ans t pts 1 ref 59 obj 05 3 type app top aacsb

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ANS: T PTS: 1 REF: 59 OBJ: 05-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model International Perspective 11. The U.S. government prohibits the importation of Havana cigars because of political differences with Cuba. This is an example of an import exchange control. ANS: F This is an example of a boycott. PTS: 1 REF: 59 OBJ: 05-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model International Perspective 12. To protect its local vodka industry, Russia allows foreign manufacturers to have only one percent of the Russian vodka market. This is an example of using tariffs to control foreign competition. ANS: F This is an example of using quotas to control foreign competition. PTS: 1 REF: 59 OBJ: 05-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model International Perspective 13. The Uruguay Round of trade negotiations dramatically increased trade barriers worldwide. ANS: F It lowered trade barriers. PTS: 1 REF: 60 OBJ: 05-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model International Perspective 14. NAFTA is the New American Foreign Trade Amendment, which allows for balanced trade with the European Union (EU).
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ANS: F NAFTA is the North American Free Trade Agreement, which creates a free-trade zone among Canada, the United States, and Mexico. PTS: 1 REF: 61 OBJ: 05-3 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model International Perspective 15. GATT, NAFTA, and the EU are all examples of market groupings. ANS: F GATT and NAFTA are trade agreements, and the EU is a market grouping. PTS: 1 REF: 59-60 OBJ: 05-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model International Perspective 16. Vast differences in natural resources created international dependence and huge shifts of wealth. ANS: T PTS: 1 REF: 63 OBJ: 05-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model International Perspective 17. Even though it is not actively involved in global marketing, Hennessey Enterprises, a U.S.-based busi- ness, agreed to sell two thousand of its stress-reducing products to a distribution company in Norway. This would be an example of direct investment. ANS: F This is an example of exporting. PTS: 1 REF: 64 OBJ: 05-4 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model International Perspective | TB&E Model Strategy 18. Licensing agreements reduce the risk for manufacturers and sometimes even remove the requirement for a manufacturer to produce its own product. ANS: T PTS: 1 REF: 64 OBJ: 05-4 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model International Perspective | TB&E Model Strategy 19. The major disadvantage of licensing agreements is that international companies cannot maintain con- trol over their licensees. ANS: F Two common ways of maintaining effective control over licensees are shipping one or more critical components from the United States or locally registering patents and trademarks to the U.S. firm.
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