Question 1

The two basic types of tariffs are:

Accepted Answer

A)  goods and services.
B)  general and limited.
C)  comparative and absolute.
D)  revenue and protective.E) A) and B)
F) A) and C)

Question 2

A major concern voiced by Canadian critics of the North American Free Trade Agreement (NAFTA) is that it would result in:

Accepted Answer

A)  higher prices for consumer goods.
B)  loss of jobs in the Canadian economy.
C)  national security problems.
D)  increased illegal immigration from Mexico.E) A) and C)
F) A) and D)

Question 3

Most governments prohibit their citizens from participating in joint ventures.

Accepted Answer

A) True 
 B)False  False

Question 4

Export trading companies assist businesses in getting paid for export transactions.

Accepted Answer

A) True 
 B)False

Question 5

Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods produced more efficiently by other countries?

Accepted Answer

A)  Comparative advantage.
B)  Absolute advantage.
C)  Mercantilism.
D)  Bilateral advantage.E) A) and C)
F) None of the above

Question 6

Many countries use ________________ policies as a way to protect their domestic industries from unfair foreign competition.

Accepted Answer

A)  export limitation
B)  global marketing
C)  trade protectionism
D)  import enhancementE) B) and C)
F) A) and D)

Question 7

All of the following are objectives of the North American Free Trade Agreement (NAFTA) except:

Accepted Answer

A)  elimination of trade barriers between member nations.
B)  increment in investment opportunities in each of the member nations.
C)  creation of a single currency to compete with the euro.
D)  provision of protection for intellectual property rights.E) All of the above
F) A) and C)

Question 8

The complete ban on the sale of ivory in Canada is an example of an import quota.

Accepted Answer

A) True 
 B)False

Question 9

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Accepted Answer

A) True 
 B)False

Question 10

Maureen,a Canadian resident,was surprised to see that her home computer was actually made in Japan.Maureen did not know she had purchased a(n) :

Accepted Answer

A)  imported item.
B)  exported item.
C)  protected good.
D)  generic good.E) A) and B)
F) None of the above A

Question 11

The European Union is an example of a common market.

Accepted Answer

A) True 
 B)False

Question 12

A Mexican firm has agreed to trade petroleum to an American importer in return for Canadian made computers.This arrangement is an example of:

Accepted Answer

A)  a letter of credit arrangement.
B)  a non tariff trade.
C)  arbitrage.
D)  countertrade.E) A) and B)
F) A) and D)

Question 13

Which of the following strategies for competing in the global markets involves the lowest risk and offers the lowest profit potential?

Accepted Answer

A)  A joint venture
B)  A foreign subsidiary
C)  Contract manufacturing
D)  LicensingE) A) and C)
F) All of the above D

Question 14

The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called:

Accepted Answer

A)  a joint venture.
B)  a royalty.
C)  a licensee.
D)  an outsource agreement.E) A) and B)
F) B) and C)

Question 15

Canada,as of 2009,enjoys a trade surplus in the global market.

Accepted Answer

A) True 
 B)False

Question 16

The value of goods imported into France exceeds the value of French exports.This indicates that France:

Accepted Answer

A)  will experience an exchange rate decrease.
B)  utilizes high tariffs.
C)  will incur a budget deficit.
D)  has a balance of trade deficit.E) C) and D)
F) B) and D)

Question 17

While China presents an important source of Canadian imports,few export opportunities exist for Canadian firms to sell goods and services to Asian consumers.

Accepted Answer

A) True 
 B)False

Question 18

An import quota is a complete ban on the import or export of certain products.

Accepted Answer

A) True 
 B)False

Question 19

Last year,the nation of Kwansai reported that it had a favourable balance of trade even though it imported $11 billion worth of goods.This indicates that Kwansai:

Accepted Answer

A)  exported $11 billion worth of goods.
B)  exported more than $11 billion worth of goods.
C)  overpriced the value of its exports.
D)  exported less than $11 billion worth of goods.E) All of the above
F) B) and D)

Question 20

A favourable balance of trade occurs when the value of a country's imports exceeds the value of its exports.

Accepted Answer

A) True 
 B)False

Exam 3: Competing in Global Markets

The two basic types of tariffs are:

Correct AnswerverifiedShow Answer

A major concern voiced by Canadian critics of the North American Free Trade Agreement (NAFTA) is that it would result in:

Correct AnswerverifiedShow Answer

Most governments prohibit their citizens from participating in joint ventures.

Correct AnswerverifiedFalse

Export trading companies assist businesses in getting paid for export transactions.

Correct AnswerverifiedShow Answer

Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently,and buy goods produced more efficiently by other countries?

Correct AnswerverifiedShow Answer

Many countries use ________________ policies as a way to protect their domestic industries from unfair foreign competition.

Correct AnswerverifiedShow Answer

All of the following are objectives of the North American Free Trade Agreement (NAFTA) except:

Correct AnswerverifiedShow Answer

The complete ban on the sale of ivory in Canada is an example of an import quota.

Correct AnswerverifiedShow Answer

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Correct AnswerverifiedShow Answer

Maureen,a Canadian resident,was surprised to see that her home computer was actually made in Japan.Maureen did not know she had purchased a(n) :

Correct AnswerverifiedA

The European Union is an example of a common market.

Correct AnswerverifiedShow Answer

A Mexican firm has agreed to trade petroleum to an American importer in return for Canadian made computers.This arrangement is an example of:

Correct AnswerverifiedShow Answer

Which of the following strategies for competing in the global markets involves the lowest risk and offers the lowest profit potential?

Correct AnswerverifiedD

The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called:

Correct AnswerverifiedShow Answer

Canada,as of 2009,enjoys a trade surplus in the global market.

Correct AnswerverifiedShow Answer

The value of goods imported into France exceeds the value of French exports.This indicates that France:

Correct AnswerverifiedShow Answer

While China presents an important source of Canadian imports,few export opportunities exist for Canadian firms to sell goods and services to Asian consumers.

Correct AnswerverifiedShow Answer

An import quota is a complete ban on the import or export of certain products.

Correct AnswerverifiedShow Answer

Last year,the nation of Kwansai reported that it had a favourable balance of trade even though it imported $11 billion worth of goods.This indicates that Kwansai:

Correct AnswerverifiedShow Answer

A favourable balance of trade occurs when the value of a country's imports exceeds the value of its exports.

Correct AnswerverifiedShow Answer

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A

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D

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