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Q:
What occurs in the balance of payments account when international payments are greater than receipts?
A) a tariff
B) inflation
C) recession
D) a credit
E) a deficit
Q:
Which of the following falls on the minus side of the U.S. balance of payments?
A) payments to the United States for insurance
B) payments of dividends and interest on investments abroad
C) return on capital invested abroad
D) new foreign investments in the United States
E) spending by American tourists overseas
Q:
Which of the following falls on the plus side of the U.S. balance of payments?
A) payments to the United States for insurance
B) the costs of goods imported
C) spending by American tourists overseas
D) new overseas investments
E) the cost of foreign military
Q:
What is a defining characteristic of a balance-of-payments statement?
A) It is a record of the domestic transactions between the government of a country and the private companies in that country.
B) It records all financial transactions between the residents of a country and those of the rest of the world.
C) It records the trade policies of the member nations of the WTO.
D) It is an annual record of the profitable foreign transactions made by a particular country.
E) It is a financial statement in which the credits must exceed the debits.
Q:
A balance-of-payments statement for a country reveals
A) how rich or poor a country is financially.
B) a record of the country's financial condition.
C) a comparison of one country's finances to another country's debt.
D) a balanced budget for the country.
E) the spending power available to the country for specific goods.
Q:
What is used to ensure that balance-of-payments records are always in balance?
A) sum of squares recording system
B) bank reconciliation system
C) double-entry bookkeeping system
D) archival records system
E) multifactor recording system
Q:
The system of accounts that records a nation's international financial transactions is most accurately called its
A) supply chain management system.
B) gross domestic product system.
C) net domestic product payments.
D) balance of payments.
E) net national product systems.
Q:
The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of these countries is included on this list?
A) Canada
B) Nigeria
C) Netherlands
D) Indonesia
E) Zimbabwe
Q:
In the last few years, most of the countries of the world saw a dramatic slowdown in the growth of their economies with the exception of
A) the United States.
B) Spain.
C) China.
D) Greece.
E) France.
Q:
Following World War II, it is noted that the West created the trade patterns. This was especially true in which one of the following?
A) North America
B) Europe
C) South America
D) Asia
E) Central America
Q:
What strategy was employed by the United States to regain its lost market share for capital goods by the late 1990s?
A) funding the competitive developing nations
B) restructuring its industries to be more "lean and mean"
C) decreasing its exports and increasing its imports
D) raising average U.S. tariffs on more than 20,000 imported goods by 60 percent
E) provoking increased protectionism from other countries
Q:
What is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?
A) The resurgence of competition for U.S. businesses from all over the world
B) The elimination of import taxes in the European countries
C) The restructuring of U.S industries
D) The decadence of communism
E) The dissolution of colonial powers
Q:
Which statement presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction?
A) Third World countries have been excluded from this economic growth leading to stark imbalances in wealth.
B) The European Union has become the center of world trade, taking the position away from the United States.
C) The United States has continuously maintained the positive balance of trade it attained during the 1950s.
D) Economic power and potential has become more evenly distributed among the countries of the world.
E) SDRs and gold have lost their utility as the basic medium of financial exchange and most monetary statistics have started relating to the U.S. dollar.
Q:
Post-World War II, worldwide economic growth was in strong evidence and countries that were once classified as less developed were reclassified as
A) communist countries.
B) free trade economies.
C) tier-II countries.
D) developed countries.
E) newly industrialized countries.
Q:
Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s?
A) the creation of the Soviet Union and the higher tariffs on imports
B) growing jingoistic nationalism and a negative population growth rate in major international markets
C) resistance to direct investment and increasing competition in export markets
D) increasing Chinese domination in the manufacturing sector and the falling dollar in global markets
E) the decreased demand for U.S. goods in the global market and the growing influence of consumer rights advocacy in the home market
Q:
The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance that followed World War II, led to
A) the rise of new global marketing opportunities.
B) the decrease in demand for American goods worldwide.
C) the dissolution of GATT.
D) the spread of communism by the United States.
E) the sharp reduction in the production capacity of the United States.
Q:
What was the outcome for GATT after the ratification of the Uruguay Round agreements?
A) GATT allowed the United States to increase its import tax.
B) GATT became part of the World Trade Organization.
C) GATT directly led to the uneven distribution of economic power and potential.
D) The European Union decided to stay away from the treaty.
E) The original purpose was sidelined in favor of political and military intervention between member states.
Q:
Why did the Smoot-Hawley Act play a role in sending the world's economies into the Great Depression?
A) It encouraged the majority of world economies to lower tariffs to imported goods.
B) It raised U.S. tariffs on thousands of imported goods by more than 60 percent.
C) It created an embargo on all agricultural products.
D) It divided the United States into factions based on race.
E) It forced independent countries to band together to stay economically viable.
Q:
How did GATT prevent the repeat of the economic disaster that occurred after World War I?
A) It provided short-term loans to struggling nations.
B) It promoted dumping policies to allow stronger ties between member nations.
C) It fostered isolationism for nations that were market leaders.
D) It provided for a third party, the United Nations, to negotiate peace treaties.
E) It provided a forum for member countries to negotiate a reduction of tariffs and other barriers to trade.
Q:
What factor was primarily responsible for the excess in production capacity in the United States after World War II?
A) The United States government raised the tariffs on most imports by 60%.
B) Many firms from other nations shifted their production facilities to the United States.
C) Domestic demand was at a historic low and resulted in excess capacity.
D) The returning military after World War II increased the labor supply in the United States.
E) The implementation of the Marshall Plan dampened the overseas demand.
Q:
What was the most apparent reciprocal impact of the foreign economic assistance given by the United States following World War II?
A) European countries formed an alliance to counter the OPEC countries' clout.
B) Outflow of labor to the recipient countries increased dramatically.
C) All recipient countries appointed Americans to manage their central banks.
D) Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased.
E) Distribution of economic power and potential became more uneven.
Q:
After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. As a result, most of the noncommunist economies in the world
A) stagnated.
B) grew significantly.
C) failed.
D) quickly matched the U.S. economy.
E) faced high inflation rates.
Q:
After World War II, the United States led efforts to provide financial and industrial development assistance to rebuild Japan and channeled funds to foster economic growth in the underdeveloped world. These efforts were primarily aimed at
A) halting the growth of Nazi Germany.
B) dampening the spread of communism.
C) dampening the spread of capitalism.
D) building a stronger defense force.
E) creating a worldwide trade bloc to counter the OPEC countries' clout.
Q:
As both special drawing rights (SDRs) and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold and silver rather than dollars.
Q:
The International Monetary Fund was created before World War II to help individual states regain economic profitability.
Q:
The decisions taken by the World Trade Organization in solving trade disputes among members are binding ones.
Q:
The GATT panels were formed to resolve bilateral trade disputes and have both advisory and enforcement powers.
Q:
One advantage of the Omnibus Trade and Competitiveness Act is a more flexible process to obtain export licenses.
Q:
Under the Omnibus Trade and Competitiveness Act, the U.S. president has the authority to restrict sales of a country's products in the U.S. market if that country imposes unfair restrictions on U.S. products.
Q:
The Omnibus Trade and Competitiveness Act of 1988 focuses on assisting businesses to be more competitive in world markets, but does not get involved in trade practices.
Q:
Antidumping laws encourage foreign producers to sell their products at a higher cost than the cost of production and create more opportunities for free trade.
Q:
The United States and other countries require some products to contain a percentage of "local content" to gain admission to their markets.
Q:
An exchange permit issued by a government can stipulate an unfavorable rate of exchange depending on the desires of the government.
Q:
It is mandatory for importers who want to buy a foreign good from a foreign country to apply for a business permit in that country.
Q:
In the context of blocked currency, blockage is accomplished by refusing to allow an importer to exchange its national currency for the currency of the seller.
Q:
An embargo sets a limit on the quantity of goods one country can sell to another.
Q:
Voluntary export restraints are common in the agricultural industry when an agreement is made between the importing and exporting countries for a restriction on the volume of exports.
Q:
An import license limits the quantities that can be imported on a case-by-case basis.
Q:
The United States has placed a limit on the tons of sugar that can be imported into the country. This is an example of a tariff.
Q:
Tariffs are often used as reprisals against protectionist moves of trading partners.
Q:
In general, a tariff will decrease inflationary pressures.
Q:
Quotas, boycotts, monetary barriers, and market barriers are examples of tariff barriers.
Q:
In general, economists do not recognize "protection of the home market" as a valid argument for protectionist measures.
Q:
Establishing a tariff on fabrics imported from Uruguay so that U.S. manufacturers sell more fabrics is an example of a protectionist measure.
Q:
When foreign currencies can be traded for more dollars, U.S. products and companies are more expensive for the foreign customer and exports decrease.
Q:
When reviewing a balance-of-payments statement, you would check the reserves account to view exports and imports of gold.
Q:
In a balance-of-payments record, the current account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.
Q:
A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time.
Q:
The Organization for Economic Cooperation and Development (OECD) estimates that the economies of the developed world will expand at much faster rates when compared to the developing economies.
Q:
By the year 1971, the United States was selling less to other countries than it bought from them; that is, the United States had a trade deficit.
Q:
The United States faced decreasing competition in export markets beginning in 1970 with the ending of the Vietnam War.
Q:
The GATT became part of the World Trade Organization in 1995 with the ratification of the Uruguay Round agreements.
Q:
The Marshall Plan was developed by the United States as a method to assist Europe in rebuilding after World War II.
Q:
Explain why a company might choose to use infrequent foreign marketing.
Q:
To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. List the four steps that make up the framework for such an analysis.
Q:
What are the two primary obstacles to success in international marketing and how do they affect the international marketer?
Q:
Explain how the "alien status" of a company amplifies the political and legal issues faced by the company in a foreign market.
Q:
Kendrik's Boston-based company would like to expand into Europe. How will competition within the United States affect international marketing for Kendrik?
Q:
List and briefly explain the domestic environment uncontrollable elements that influence an international marketer.
Q:
How can a manager construct a marketing program designed for optimal adjustment to the uncertainty of the business climate?
Q:
Explain the key difference between domestic and international marketing.
Q:
Discuss some of the U.S.-based companies that are now foreign controlled and describe how U.S. companies have been affected by this.
Q:
Describe the four trends that have been pointed to as influencers for the role of international business for the future. Explain how these four trends will affect international business.
Q:
For a company at the ________ stage of internationalization, market segments are defined by income levels, usage patterns, or other factors that frequently span countries and regions.
A) domestic market extension
B) no direct foreign marketing
C) global marketing
D) internal marketing
E) infrequent foreign marketing
Q:
Which one of the following firms/products reflects a global marketing orientation?
A) skin-care products aimed at African American women
B) a company promoting Latino jazz musicals
C) a firm producing highly cost-effective and durable computers to attract students and young people under 25
D) a famous restaurant in Singapore specializing in Eurasian fusion food
E) a Japanese to English translation software
Q:
What is the most profound change for firms at the global marketing stage of internationalization?
A) More than half of the multinational firm's revenue is generated from domestic markets.
B) Sales to foreign markets are made as and when goods become available.
C) Temporary surpluses marketed in foreign markets is the only element of internationalization.
D) Companies treat the world, along with home market, as one market.
E) Domestic demand always exceeds the firm's production capacity.
Q:
A firm that is involved with the international marketing stage of marketing involvement will
A) have its primary focus of operations and production on servicing domestic market needs.
B) reduce foreign sales activity.
C) consider profit expectations from foreign markets as a bonus in addition to regular domestic profits.
D) plan both marketing and production of goods outside the home market.
E) consider international marketing only when there is a surplus of goods.
Q:
In the infrequent foreign marketing stage of international marketing involvement, firms
A) sell products that are a result of planned production in markets in various countries.
B) no longer make market segmentation decisions on the basis of national borders.
C) have a global perspective and view the entire world as one market.
D) have more than half their sales revenues coming from international markets.
E) have no intention of maintaining continuous market representation in foreign markets.
Q:
In what stage of international marketing involvement do companies primarily focus all their operations and production to service domestic market needs, even though they have a permanent productive capacity devoted to the production of goods to be marketed in foreign markets?
A) no direct foreign marketing
B) internal marketing
C) regular foreign marketing
D) international marketing
E) financial marketing
Q:
What is true of firms in the first two stages of international marketing involvementno direct foreign marketing and infrequent foreign marketing?
A) They do not begin internationalization at these stages.
B) They take a strategic approach to decision making regarding international expansion.
C) They are more reactive in nature and embark on internationalization without planning.
D) They intend to maintain a continuous market representation in foreign markets.
E) They are a result of dedicated production capacity maintained for foreign markets.
Q:
What factor is favorable when determining whether or not a company should consider internationalization efforts?
A) A company currently has large home markets but smaller production capacities.
B) A company has home country managers who have never worked outside of the home country.
C) A company wants to pair with an existing international company to access technology.
D) A company has minimal storage and transportation capabilities.
E) A company has high-technology resources already in place.
Q:
Kentax Corporation makes industrial cleaning products and decides to enter the international marketing arena by marketing its products to China, Japan, and South Korea, with separate marketing strategies for each country. Which of the following approaches is most likely used by Kentax Corporation to formulate its international policies and strategies?
A) domestic market extension
B) multidomestic market
C) mass marketing
D) regional marketing
E) standardized marketing
Q:
Marta's company treats the world, including the home market in Spain, as one market. Market segmentation decisions no longer focus on national borders. Instead, market segments are defined by income levels, usage patterns, and other factors that span countries and regions. Which of the following stages best characterizes the stage of international marketing involvement for Marta's company?
A) infrequent foreign marketing
B) test marketing
C) no direct foreign marketing
D) internal marketing
E) global marketing
Q:
The tendency to aggressively court FDI believed to be in the national interest of a country is an aspect of:
A.pragmatic nationalism.
B.the radical view.
C.nationalism.
D.imitative theory.
E.eclectic paradigm.
Q:
According to which of the following, FDI has both benefits and costs and should be allowed only if the benefits outweigh the costs?
A.Eclectic paradigm theory
B.Free market view
C.Pragmatic nationalist view
D.Radical view
E.Internalization theory
Q:
Many host countries are concerned that a foreign-owned manufacturing plant may import many components from its home country, which has negative implications for the host country's:
A.free trade agreements.
B.inward FDI.
C.sovereignty.
D.balance-of-payments position.
E.gold reserves.
Q:
The pragmatic nationalist view is that:
A.FDI benefits only the host country.
B.FDI does not make any positive contribution to the host economy.
C.every country should adopt the free market view.
D.FDI should not be allowed by any country as it is an instrument of economic domination rather than economic development.
E.FDI has both benefits and costs.
Q:
Which of the following statements regarding the free market view is true?
A.According to the free market view, MNEs decrease the overall efficiency of the world economy.
B.The free market view argues that FDI is a benefit to both the source country and the host country.
C.According to the free market view, MNEs can never be instruments of economic development, only of economic domination.
D.According to the free market view, FDI is beneficial to the host country of an MNE but it is harmful for the home country of the MNE.
E.The free market view traces its roots to Marxist political and economic theory.
Q:
According to the free market view, how does FDI increase the efficiency of the world economy through MNEs?
A.The MNE is an instrument for dispersing the production of goods and services to the most efficient locations around the globe.
B.MNEs extract profits from the host country and take them to their home country and help all countries realize economies of scale.
C.When an MNE produces products, profits from the investment go abroad, and hence the MNE helps foreign exchange to rotate.
D.A foreign-owned manufacturing plant may import many components from its home country, thus improving the balance of payments of the host country.
E.MNEs increase the efficiency of the world economy by increasing the flow of capital in the world market.
Q:
Which view argues that international production should be distributed among countries according to the theory of comparative advantage?
A.Conservative
B.Pragmatic nationalism
C.Free market
D.Radical
E.Keynesian economic