International Trade
Exam Answer Key
Course Introduction
International Trade explores the theories, policies, and practices that govern the exchange of goods and services across national borders. The course examines classical and modern trade theories, including comparative advantage and the Heckscher-Ohlin model, as well as the economic impact of tariffs, quotas, and other trade barriers. Students will analyze the role of international organizations such as the World Trade Organization (WTO), study balance of payments concepts, and assess the effects of globalization on both developed and developing countries. The course also addresses contemporary issues such as trade disputes, regional trade agreements, and the implications of trade policy for economic growth and international relations.
Recommended Textbook
International Business The Challenges of Globalization 7th Global Edition by John Wild
Available Study Resources on Quizplus
16 Chapters
1669 Verified Questions
1669 Flashcards
Source URL: https://quizplus.com/study-set/2105 Page 2
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/41907
Sample Questions
Q1) The KOF Index measures the ________.
A)distribution of the global workforce
B)extent of globalization
C)gross regional product of an area
D)extent of technological innovation in a nation
Answer: B
Q2) The value of all goods and services produced by a country's domestic and international activities over a one-year period is the country's ________.
A)gross domestic product (GDP)
B)gross world product (GWP)
C)gross national product (GNP)
D)gross state product (GSP)
Answer: C
Q3) The term "globalization of production" refers to convergence in buyer preferences in markets around the world.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Cross-Cultural Business
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/41908
Sample Questions
Q1) Describe the relationship between culture and the physical environment.
Answer: Although physical environment affects a people's culture,it does not directly determine it.Two aspects of the physical environment that heavily influence a people's culture are topography and climate.
All the physical features that characterize the surface of a geographic region constitute its topography.Some surface features such as navigable rivers and flat plains facilitate travel and contact with others.By contrast,treacherous mountain ranges and large bodies of water can discourage contact.Cultures isolated by topographical features can find themselves less exposed to the cultural traits of other peoples,which can mean slower cultural change.Topography can impact consumers' product needs and can also have a profound impact on personal communication in a culture. Climate affects where people settle and helps direct systems of distribution.It plays a large role in lifestyle and work habits,to which companies must adapt,and it also impacts customs such as the type of clothing people wear.
Q2) Subcultures exist only within a nation's borders.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Politics, Law, and Business Ethics
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/41909
Sample Questions
Q1) Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry.The government's actions are an example of ________.
A)confiscation
B)globalization
C)expropriation
D)nationalization
Answer: D
Q2) A ________ is a political system in which a country's religious leaders serve as its political leaders.
A)democracy
B)theocracy
C)plutocracy
D)septocracy
Answer: B
Q3) Pluralism is a political system in which political leaders rely on military and bureaucratic power.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Economics and Emerging Markets
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/41910
Sample Questions
Q1) Which of the following is the main goal of privatization?
A)to ensure that the government specifies production goals
B)to increase economic efficiency
C)to increase subsidies to companies
D)to increase government's control on the market
Q2) Sergei learns that an important aspect of market-based economies is the private ownership of companies.As Russia goes through the privatization process,it aims to ________.
A)increase tax revenues
B)improve military defense
C)increase social welfare
D)increase economic efficiency
Q3) Given the lack of available hard currency,Russian businesses often use goods and services as payment for other products they buy from abroad.This practice is referred to as ________.
A)letter of credit
B)fiat money
C)barter
D)guanxi
Q4) How are countries classified? Explain with examples.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: International Trade
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/41911
Sample Questions
Q1) Which of the following was a prominent mercantilist nation?
A)U)S.
B)China
C)Britain
D)Japan
Q2) Discuss the dangers of trade dependency.
Q3) Trade in services tends to be relatively more important for the world's richest countries.
A)True
B)False
Q4) According to mercantilism,the accumulation of national wealth depended on the ________.
A)increase in a nation's trade surplus
B)increase in a nation's trade deficit
C)expansion of a nation's total value of trade
D)expansion of a nation's total volume of trade
Q5) Explain how the national competitive advantage theory supports and builds upon the factor proportions theory.
Q6) Discuss the factor proportions theory and describe the evidence on this theory.
Q7) Discuss the three essential pillars of the theory of mercantilism.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Business-Government Trade Relations
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/41912
Sample Questions
Q1) Receiving financing from government agencies is often crucial to the success of small businesses just beginning to export.
A)True
B)False
Q2) A requirement that all WTO members extend the same favorable terms of trade to all members that they extend to any single member is called ________.
A)normal trade relations
B)antidumping duties
C)local content requirements
D)countervailing duties
Q3) Which of the following statements is true of embargoes?
A)An embargo may be placed on one or a few goods or may completely ban trade in all goods.
B)An embargo is the least restrictive nontariff barrier available.
C)An embargo is usually employed for economic reasons.
D)Embargoes are used frequently today because they are easy to implement.
Q4) What is meant by dumping? Describe the various roles of the World Trade Organization,including when a country is accused of dumping.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Foreign Direct Investment
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/41913
Sample Questions
Q1) Making investments in distribution in order to leapfrog channels of distribution that are tightly controlled by competitors is an example of ________.
A)an internalization advantage
B)an ownership advantage
C)forward integration
D)backward integration
Q2) Which of the following methods is being used when a host country provides lower tax rates and low-interest loans to firms from abroad for encouraging inflows of foreign direct investment?
A)financial incentives
B)sanctions
C)local content requirements
D)embargoes
Q3) Ownership restrictions and performance demands are used by ________.
A)host countries to promote FDI
B)host countries to restrict FDI
C)home countries to promote FDI
D)home countries to restrict FDI
Q4) What two factors propel growth in foreign direct investment?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Regional Economic Integration
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/41914
Sample Questions
Q1) No proposed legislation becomes EU law unless the ________ votes it into law.
A)Council of the European Union
B)European Parliament
C)Court of Auditors
D)European Commission
Q2) The Southern Common Market is also referred to as MERCOSUR.
A)True
B)False
Q3) The ________ called for banking in a single common currency,setting up of monetary and fiscal targets,and political union of the European Union members.
A)Maastricht Treaty
B)European monetary union
C)Single European Act
D)Copenhagen Criteria
Q4) The Court of Justice is the ________ of the European Union.
A)court of honor
B)court of appeals
C)small-claims court
D)arbitral tribunal
Q5) Discuss the benefits and drawbacks of regional integration.
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: International Financial Markets
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/41915
Sample Questions
Q1) The market consisting of all the world's currencies that are banked outside their countries of origin is called the ________.
A)foreign exchange market
B)interbank market
C)Eurocurrency market
D)offshore financial center
Q2) All foreign exchange transactions can be performed in the over-the-counter (OTC)market.
A)True
B)False
Q3) An excess money supply creates a borrower's market,forcing down interest rates and the cost of borrowing.
A)True
B)False
Q4) Briefly describe the three main institutions of the foreign exchange market.
Q5) Banks in the interbank market ________.
A)provide long-term loans to small-sized and medium-sized companies
B)provide long-term loans to large companies
C)offer advice on trading strategies
D)exchange currencies exclusively at spot rates
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: International Money System
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/41916
Sample Questions
Q1) Compare and contrast the two main techniques for forecasting exchange rates.
Q2) In order to capture the gains from currency translation,managers prefer exchange rates that are volatile and unpredictable.
A)True
B)False
Q3) The intentional raising of the value of a currency by a nation's government is called
A)revaluation
B)securitization
C)fundamental disequilibrium
D)currency hedging
Q4) Under the gold standard,if the U.S.dollar was fixed at $30/oz of gold and Japan was fixed at ¥75/oz of gold,what would be the Yen/dollar exchange rate?
A)¥2.50/$
B)$2.50/¥
C)¥0.40/$
D)¥2250/$
Q5) Explain how a pegged exchange-rate system works. Why would a country choose to follow this system?
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: International Strategy and Organization
Available Study Resources on Quizplus for this Chatper
112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/41917
Sample Questions
Q1) A(n)________ structure is best suited to companies that treat each national market as unique due to the vast cultural,political,or economic differences between nations.
A)international division
B)international area
C)global matrix
D)global product
Q2) An organizational structure that organizes a company's entire global operations into countries or geographic regions is referred to as a(n)________ structure.
A)international area
B)international division
C)global matrix
D)global product
Q3) An international area structure separates domestic from international business activities by creating a separate international division with its own manager.
A)True
B)False
Q4) Explain how a global strategy complements a corporate growth strategy.
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Analyzing International Opportunities
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/41918
Sample Questions
Q1) Which step of the market-screening process involves determining the income elasticity of the Zulu doll?
A)selection of the market
B)assessment of the national business environment
C)identification of the basic appeal for markets
D)measurement of market potential
Q2) What types of information are found in a typical industry analysis? How can companies use this information?
Q3) The process of obtaining information that already exists within the company is called secondary market research.
A)True
B)False
Q4) Secondary data tends to be very expensive because it has already been analyzed and summarized by another party.
A)True
B)False
Q5) What are the factors managers consider when analyzing industrialized markets? Discuss why the comparability of data is a major challenge while conducting international research.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Selecting and Managing Entry Modes
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/41919
Sample Questions
Q1) Typically,indirect exporting relies on local sales representatives or distributors.
A)True
B)False
Q2) ________ is a payment method commonly used when there is an ongoing relationship between the involved parties.
A)Advance payment
B)Documentary collection
C)Letter of credit
D)Open account
Q3) If Owen's HomeCare Products decides to sell their products to intermediaries who then resell them to buyers in target markets,the company would be engaging in
A)indirect exporting
B)counterpurchase
C)an acquisition
D)a joint venture
Q4) Explain why companies consider exporting.Describe the four-step model of developing a successful export strategy.
Q5) What are the different financing methods available to exporters and importers?
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Developing and Marketing Products
Available Study Resources on Quizplus for this Chatper
103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/41920
Sample Questions
Q1) Which of the following is true of counterfeit goods?
A)Developed nations normally have the most active counterfeiting markets.
B)Counterfeiting is more common among less visible local brands than global brands.
C)Most counterfeit products are imitations of products that normally enjoy legal protection.
D)Engineered industrial components and medicines are among the few categories of products that cannot be counterfeited.
Q2) The free-market price that unrelated parties charge one another for a specific product is called a(n)________.
A)worldwide price
B)transfer price
C)dual price
D)arm's length price
Q3) Briefly discuss the effects of globalization on international marketing activities and explain how a dual adaption method works as a promotional strategy.
Q4) Using examples,explain the circular process of marketing communication.
Q5) Explain the primary concerns of managers when establishing distribution policies.
To view all questions and flashcards with answers, click on the resource link above.
16
Chapter 15: Managing International Operations
Available Study Resources on Quizplus for this Chatper
99 Verified Questions
99 Flashcards
Source URL: https://quizplus.com/quiz/41921
Sample Questions
Q1) A loan in which a parent company deposits money with a host-country bank,which then lends the money to a subsidiary located in the host country is called a ________.
A)syndicated loan
B)back-to-back loan
C)mortgage loan
D)title loan
Q2) Deciding the spatial arrangement of production processes within production units is called ________.
A)facilities layout planning
B)capacity planning
C)process planning
D)location economies
Q3) ________ requires each individual to be focused on the quality of his or her own output.
A)Total quality management
B)Quality-of-life index
C)Integrated business planning
D)Organizational restructuring
Q4) Why might companies decide to reinvest,scale back,or divest local operations?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Hiring and Managing Employees
Available Study Resources on Quizplus for this Chatper
101 Verified Questions
101 Flashcards
Source URL: https://quizplus.com/quiz/41922
Sample Questions
Q1) One lower-level position Erica must fill requires the employee to be familiar with the new market and its customs,traditions,and language.Also,the new hire must be comfortable with Hudson Food's organizational culture and business traditions.Who among the following will Erica most likely recruit for this position?
A)a local fresher with strong government contacts
B)an existing Hudson Foods employee from the United States
C)a native of the target market who has completed a one-year internship at Hudson Foods
D)an individual from the U.S.who has experience in the frozen food industry
Q2) An important advantage of the staffing policy recommended by Valerie is that it
A)re-creates local operations in the image of home-country operations
B)eliminates the high cost of relocating expatriate managers and families
C)helps the company develop global managers who can adjust easily to any business environment
D)sends managers from home to look out for the company's interests
Q3) Discuss the disadvantages of an ethnocentric staffing policy.How do bonuses,tax incentives,and employee expectations contribute to high personnel costs?
To view all questions and flashcards with answers, click on the resource link above. Page 18