Q&A Hero

Q: The main reasons certain products dominate energy usage around the world is because they are A) easy to store and transport. B) favored by most governments. C) the cheapest form of fuel. D) the most efficient forms of fuel. E) unlimited.

Q: Which source of energy dominates the world's energy usage? A) Hydroelectric power B) Petroleum products C) Wind energy D) Geothermal power E) Nuclear power

Q: Most of the energy in the underdeveloped areas of the world comes from what source? A) Nuclear power B) Human labor C) Wind energy D) Geothermal power E) Fossil fuel

Q: ________ development is a joint approach among those who seek economic growth with "wise resource management, equitable distribution of benefits and reduction of negative effects on people and the environment from the process of economic growth." A) Parallel B) Global C) Sustainable D) Unrestricted E) Holistic

Q: What effect did the Basel Convention have on world trade? A) It allowed the United States full control over the developing countries of Central America. B) It mandated a total ban on the export of hazardous waste by developed nations. C) It implemented higher tariffs on exports that created greenhouse-gas emissions. D) It required a country to remove tax barriers when importing or exporting to a contingent nation. E) It eliminated anti-dumping policies on electronic devices.

Q: Which of the following countries is the world's top polluter, at present, in almost all respects? A) Brazil B) China C) Sudan D) Afghanistan E) Zimbabwe

Q: In the context of social responsibility and environmental management, which of the following is a by-product of pollution controls? A) corporate environmental responsibility B) higher tariffs against developing countries C) the disposal of hazardous waste D) reduced availability of petroleum products E) the emission of greenhouse gases

Q: Which of the following best describes the perception of geographical features such as mountains in the context of economic growth in Europe? A) They provide natural protection from potentially hostile neighbors. B) They are impediments to efficient trade and communication. C) They are natural landmarks that symbolize national treasure. D) They are fortuitous blessings that provide a wealth of natural resources. E) They are symbols of national heritage and history.

Q: A country that struggles to export crops because it cannot build transportation around the large mountains that cover most of the terrain is being affected by A) sociology. B) geography. C) cartography. D) demographics. E) geomatics.

Q: ________ is the study of the earth's surface, climate, continents, countries, peoples, industries, and resources. A) Geophysics B) Geography C) Cartography D) Demography E) Sociology

Q: When Vicente Fox became Mexico's first opposition party president, he struggled with the drug problem and the violence it created in his country. What did he propose to alleviate this issue? A) He implemented a zero tolerance policy and first offenders were sentenced to jail. B) He decided to only legalize marijuana for medical use. C) He suggested that all drugs be legalized, including LSD, opium, meth, and more. D) He created a cabinet post that would address the issue and come up with a solution. E) He ignored the issue because it was too large for him to control.

Q: What was the response of Latin America to policies found in the Monroe Doctrine and the Roosevelt Corollary? A) They were welcomed because they created a stronger economy for all Latin American countries. B) They were used as role models for Latin American legislation. C) They were only considered important for some of the countries in Latin America. D) They were seen as a sign of hope. E) They were considered an unwelcome intrusion in Latin American affairs.

Q: The ________, a cornerstone of early U.S. foreign policy, dictated that no further European colonization in the New World would be accepted. A) Madison Corollary B) Monroe Doctrine C) Hays Corollary D) Wilson Policy Position E) Manifest Destiny

Q: Which of the following policies was used in the formation of a provisional government in Cuba in 1906? A) the Manifest Destiny B) the Hay Manifesto C) the Wilson Mandate D) the Roosevelt Corollary E) the Gadsden Policy Position

Q: Abstention of the United States from European political affairs was one of the three basic dicta of the A) Monroe Doctrine. B) North American Security Treaty. C) Hays Corollary. D) Grant Mandate. E) Roosevelt Corollary.

Q: Manifest Destiny specifically referred to the A) political clout of the United States over European countries. B) territorial expansion of the United States from the Atlantic to the Pacific. C) focus on investment and infrastructure development in Asia-Pacific. D) network of intelligence operations across the world, especially the Communist world. E) "white man's burden" to develop the underdeveloped parts of the world.

Q: In the context of U.S. foreign policy in the 19th and the 20th centuries, ________, in its broadest interpretation, meant that Americans were a chosen people to create a model society. A) Roosevelt Corollary B) Monroe Doctrine C) Hays Corollary D) Grant Mandate E) Manifest Destiny

Q: The Roosevelt Corollary implies that A) Latin America can control its own economy. B) whatever is good for the United States is justifiable. C) European intervention in Latin America is valid. D) the United States and Europe should work together in Latin America. E) no president should interfere in the affairs of another country.

Q: Manifest Destiny and the ________ were accepted as the basis for U.S. foreign policy during much of the 19th and 20th centuries. A) Roosevelt Corollary B) North American Security Treaty C) Monroe Doctrine D) Grant Mandate E) Hays Corollary

Q: Two main points of the Monroe Doctrine were that ________ was to stop colonization in the New World and not interfere in governments in the Western Hemisphere. A) Asia B) the United States C) Latin America D) Canada E) Europe

Q: The idea of Manifest Destiny was used to justify the U.S. annexation of A) Virginia. B) Ohio. C) Pennsylvania. D) New Mexico. E) Carolina.

Q: What was the overall end result of the Mexican War of 18461848? A) Mexico was forced to cede California to the U.S. B) The U.S. and Mexico signed a nonaggression pact. C) Mexico gave up California and the U.S. gave up Baja California. D) Mexico paid the U.S. $5 million for war damages. E) The U.S. signed a pledge to not invade Mexico again.

Q: According to Manifest Destiny, who gave Americans the power to create a model society? A) Roosevelt B) the people C) God D) family E) big business

Q: Which policy implied that Latin America was only for the United States and European countries should not attempt to control it? A) Monroe Doctrine B) Manifest Destiny C) Confucian philosophy D) Taiping Rebellion pact E) Opium war treaty

Q: Why was the International Monetary Fund (IMF) formed? How does the IMF deal with universally floating rates?

Q: Describe how the General Agreement on Trade in Services (GATS) helped the United States reduce barriers to international trade in services.

Q: Describe the three areas covered by the Omnibus Trade and Competitiveness Act of 1988 that are considered critical in improving U.S. trade.

Q: Explain the difference between a quota and a licensing limit.

Q: Name three things that can be restricted when tariffs are imposed.

Q: Describe the cost to the consumer when protectionist measures are in place.

Q: Compare and contrast the three accounts of a balance-of-payments statement.

Q: Why must the balance-of-payments record always be in balance? What does a balanced record signify?

Q: Compare the U.S. position in world trade today to when Servan-Schreiber warned Europe about U.S. multinational domination.

Q: What steps did the United States take following World War II to minimize the spread of communism around the world? Name at least one specific piece of legislation that was created.

Q: Which statement accurately explains the status of protests against global financial institutions? A) Organized protests against global financial institutions have been catching the attention of the world since the establishment of the IMF in 1945. B) The sole focus of the anticapitalist protestors has been the environmental impact of globalization and the need for stability. C) The "antisweatshop" campaigns by students in America have translated into changes in policy. D) The entire gamut of anticapitalist protests have been weak and ineffectual in the face of the tremendous power of global financial institutions. E) The protests against global financial institutions have been organized yet nonviolent as a rule.

Q: While unintended, what is an adverse consequence of globalization? A) nationalization of private sector holdings B) lower and more competitive oil prices C) reduced variety and quality of goods and services D) worker exploitation and domestic job losses E) provision of loans from the World Bank

Q: What is a basic criticism of global financial institutions? A) They failed to focus on the aim of reducing inequalities between rich and poor countries. B) They failed to help the Asian countries substantially when they underwent a major financial crisis in the 1990s. C) They failed to respect the autonomy of member nations by deeming any bilateral agreements between members as illegal if made without their approval. D) They failed to foresee and counter the unintended effects of globalization like pollution, exploitation, and cultural extinction. E) They failed to suppress the terrorists who were responsible for the attack in London that coincided with the G8 summit.

Q: The special drawing rights (SDRs) developed by the IMF can be thought of as A) black gold. B) exchange permits. C) floating currencies. D) paper gold. E) virtual dollars.

Q: Developed by the International Monetary Fund to cope with universally floating exchange rates, ________ represent an average base of value derived from the value of a group of major currencies. A) exchange permits B) special drawing rights C) floating currencies D) gold rates E) dollar parities

Q: What market barriers led to the creation of the International Monetary Fund? A) trade embargoes B) inflation and recession in Europe C) new taxing bodies governing trade D) inadequate monetary reserves and unstable currencies E) export quotas and higher tariffs

Q: _________ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable. A) Amnesty International B) The World Court C) The International Monetary Fund D) The International Red Cross E) The International Federation of Blue Cross

Q: Several nations that have become frustrated with the slow progress of the most recent round of WTO trade negotiations are A) negotiating bilateral trade agreements. B) forming a rival organization. C) refusing to accept all the rules and regulations imposed by the WTO. D) using legal means to sue the WTO. E) opting out of membership in the WTO.

Q: __________ are becoming a popular way to circumvent WTO guidelines and impose new duties. A) Antidumping duties B) Basic excise duties C) Special excise duties D) Production taxes E) Manufacturing taxes

Q: How are WTO decisions enforced? A) All WTO decisions are enforceable under law. B) Member nations pay a duty to join WTO and this creates natural compliance. C) The World Court reviews and enforces all WTO decisions. D) International pressure to comply with WTO decisions is expected to force compliance. E) Decisions must pass through both houses of Congress to be enforced.

Q: The Uruguay Round resulted in which institution becoming the successor to the GATT? A) International Monetary Fund B) World Bank C) European Services Forum D) World Trade Organization E) Association of Southeast Asian Nations

Q: What agreement makes it possible to challenge the restrictions in Indonesia that prohibit foreign firms from opening their own wholesale or retail distribution channels? A) Trade-Related Aspects of Intellectual Property Rights (TRIPs) B) Trade-Related Investment Measures (TRIMs) C) General Agreement on Trade in Services (GATS) D) Marrakesh Agreement E) Stockholm Agreement

Q: What does GATT use as the primary method to solve global trade problems? A) GATT works with government agencies of trade members. B) GATT uses coercion. C) GATT uses consultation. D) GATT implements the legislative agenda of trade members. E) GATT creates binding agreements between member nations.

Q: Which statements accurately describes the General Agreement on Tariffs and Trade (GATT)? A) The United States, the United Kingdom, and Germany were the only signatories of the original GATT. B) The original agreement provided a process to increase the tariffs on trade goods. C) GATT member nations seek to resolve their trade disputes unilaterally. D) The GATT panels have enforcement powers apart from advisory powers. E) It created an agency to serve as watchdog over world trade.

Q: What is one of the four ongoing activities that support the growth of international trade? A) Warsaw Pact B) Kyoto Protocol C) International Monetary Fund D) World Summit on Sustainable Development E) Treaty of Waitangi

Q: Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and possibly severe financial harm? A) the market access section B) the export expansion section C) the import relief section D) the foreign exchange regulation section E) the trade deficit section

Q: The Foreign Corrupt Practices Act (FCPA) was specifically addressed in the ________ section of the Omnibus Trade and Competitiveness Act. A) market access B) export expansion C) import relief D) foreign exchange regulation E) trade deficit

Q: What was the impetus for the Omnibus Trade and Competitiveness Act? A) Markets in the U.S. were open to most of the world but markets in Europe and many Asian countries were relatively closed. B) The U.S. market was relatively closed to the rest of the world. C) Markets in the U.S. were being driven by foreign demand. D) The trade volume in the U.S. was declining. E) Markets in the U.S. were trading with partners based on how they hoped they would respond rather than how they actually operated.

Q: What legislative decision was designed to primarily deal with trade deficits, protectionism, and the overall fairness of U.S. trading partners? A) the Neutrality Pact of 1941 B) the Omnibus Trade and Competitiveness Act of 1988 C) the League of Nations Act of 1920 D) the Hawley-Smoot Tariff Act of 1930 E) the International Monetary Fund and Bank Act of 1945

Q: Which trading partner of the United States became its number one "trade problem" at the beginning of the 21st century? A) United Kingdom B) Japan C) Germany D) Canada E) China

Q: ________ is/are a nontariff barrier that was specifically designed to prevent foreign producers from using predatory pricing to take control of U.S. markets. A) Quotas B) Embargoes C) Blocked currency D) Antidumping laws E) Exchange permits

Q: ________ pricing is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market. A) Basing point B) Spot C) Defensive D) Counterpoint E) Predatory

Q: The United States and other countries require some products (automobiles in particular) to contain a percentage of "local content" to gain admission to their markets. This is an example of the stringent usage of ________ to restrict trade. A) exchange permits B) embargoes C) blocked currencies D) standards E) antidumping penalties

Q: Active Bicycle Company has just received notice that a shipment of 300 bicycles has been rejected by the customs administration of the recipient country because the bikes did not include a metal plate surrounding the chain. What category of nontariff barriers primarily uses such quality issues as a trade barrier? A) quotas B) licenses C) embargoes D) boycotts E) standards

Q: An exchange permit can stipulate the A) quantity of goods that can be exchanged for a particular sum of foreign currency. B) number of parties that can be involved in an exchange transaction. C) amount to be exchanged that must be deposited in a local bank for a set period. D) quality standards of the goods involved in an exchange. E) number of times one party can avail exchange permits.

Q: What trade policy tool makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit? A) tariff B) import quota C) blocked currency D) government approval E) export levy

Q: In order to effectively secure foreign exchange, what is most likely to be used by countries experiencing severe shortages of foreign exchange? A) privatization B) government approval C) spot pricing D) voluntary export restriction E) monopoly

Q: In the context of monetary barriers, blockage is ideally accomplished when A) a country refuses to allow an importer to exchange its national currency for the country's currency. B) two countries enter into a voluntary agreement to determine the value of their currencies. C) a country applies a specific unit or dollar limit to a particular type of good. D) money dealers limit the rate at which foreign currencies are exchanged. E) the government of a country imposes a mandatory tax on goods entering at its borders.

Q: One country refuses to sell goods to its neighboring country based on the belief that the neighboring country harbors radicals and terrorists. In this case, the refusal is referred to as a(n) A) antidumping penalty. B) embargo. C) monetary barrier. D) orderly market agreement. E) voluntary export restraint.

Q: The marketing manager for Glorious Products wants to export the company's line of fashion boots to an EU country. However, she discovers that there is a complete restriction on the import of any form of leather into that country. This is an example of A) an orderly market agreement. B) a quota. C) a monetary barrier. D) a voluntary export restraint. E) a boycott.

Q: Voluntary export restraints are commonly used in what industry? A) finance B) furniture C) agriculture D) media E) education

Q: A voluntary export restraint is an agreement signed willingly between the importing country and the exporting country for a restriction on the A) overall tax. B) number of businesses eligible for imports. C) volume of exports. D) government's portion of the paid tariff. E) balance-of-payments statements.

Q: Exporting countries primarily agree to voluntary export restraints (VERs) to A) minimize exposure in the importing country. B) reduce market competitiveness. C) avoid stiffer quotas being set by the importing country. D) take over local industries of the importing country. E) avoid criminal prosecution.

Q: If a country decided to refuse to allow an importer to exchange its national currency for the sellers' currency, it would be an example of a(n) ________ currency. A) blocked B) spot C) embargo D) taxed E) quota

Q: If a country refuses to sell some products to another country, it is utilizing which barrier to trade? A) import credit discriminations B) export subsidies C) voluntary export restraints D) embargoes E) packaging, labeling, or marking standards

Q: A boycott on importing produce from Mexico would be an example of a A) compound duty. B) revenue tariff. C) nontariff barrier. D) specific duty. E) quota embargo.

Q: A specific unit or dollar limit applied to a particular type of good is called a(n) A) trade license. B) quota. C) ad valorem duty. D) predatory price. E) exchange rate.

Q: The tariff on certain goods is based on the percentage of the determined value of the item being imported. What type of tariff is this? A) compound duty B) quota duty C) specific duty D) reciprocal duty E) ad valorem duty

Q: Which statement is true of tariffs? A) They strengthen balance-of-payments positions. B) They strengthen supply-and-demand patterns. C) They increase special interests' privileges. D) They strengthen international relations. E) They promote competition.

Q: In general, tariffs weaken A) inflationary pressures. B) special interests' privileges. C) balance-of-payments positions. D) government control in economic matters. E) the number of reciprocal tariffs by other countries.

Q: What is a tariff? A) It is a tax levied by a government on goods being exported out of the country. B) It is a tax paid by individual states to the federal government for goods transferred across state lines. C) It is a tax imposed by a government on goods that are imported into the country. D) It is a limit on the amount of goods that can be imported into the country. E) It is a limit on the amount of goods that can be exported out of the country.

Q: Rishi, a protectionist, has seen several small businesses go bankrupt because they were unable to compete with the cheaper prices of goods provided by foreign companies. The cell-phone manufacturing industry has just started in the United Kingdom, and Rishi's company is one of the first to try its hand at cell-phone manufacturing. What argument is most likely to be used by Rishi to persuade his government to restrict the import of foreign cell phones from foreign companies? A) protection of an infant industry B) the need to keep money at home C) conservation of natural resources D) national defense E) maintenance of standard of living

Q: What argument regarding the need for protectionism is recognized by economists as valid? A) need to keep money at home B) encouragement of capital accumulation C) industrialization of a low-wage nation D) conservation of natural resources E) maintenance of employment and reduction of unemployment

Q: The ________ of the balance-of-payments statement is used to record increases or decreases in foreign exchange and increases or decreases in liabilities to foreign central banks. A) current account B) capital account C) credit account D) receivables account E) reserves account

Q: Which account in the balance-of-payments statement is a record of direct investment, portfolio investment, and short-term movement of cash and technology to and from countries? A) current account B) capital account C) credit account D) receivables account E) reserves account

Q: The ________ account of the balance-of-payments statement is used to record all merchandise exports, imports, and services plus unilateral transfers of funds. A) current B) capital C) credit D) receivables E) reserves