International Trade Practice Questions
Course Introduction
International Trade examines the flows of goods, services, and capital between countries, exploring the fundamental theories and policies that drive cross-border commerce. The course covers the economic principles underlying comparative advantage, the effects of trade policies such as tariffs and quotas, and the role of international organizations in regulating trade. Students will analyze the impact of globalization, trade agreements, and changing economic landscapes on national and global economies, while evaluating both the opportunities and challenges faced by countries and businesses in the international marketplace.
Recommended Textbook
International Business The Challenges of Globalization 8th Edition by John Wild
Available Study Resources on Quizplus
16 Chapters
1649 Verified Questions
1649 Flashcards
Source URL: https://quizplus.com/study-set/2290
Page 2
Chapter 1: Globalization
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/45497
Sample Questions
Q1) Resistance to worldwide trade agreements has resulted in some nations placing greater emphasis on regional pacts.
A)True
B)False
Answer: True
Q2) Kireki is a small country with a corrupt government.Its population is rural for most part and citizens have few or no legal rights.Which of the following is the type of market featured in Kireki?
A)developed market
B)traditional market
C)emerging market
D)virtual market
Answer: B
Q3) Products marketed in all countries essentially without any changes are known as continental products.
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/45498
Sample Questions
Q1) Upon what assumption does their argument rest? They argument assumes that
A)the people of France prefer English music and movies to French music and movies
B)the people of France no longer speak French
C)the people of other countries aren't open to French cultural elements
D)Hollywood movies don't have French subtitles
Answer: A
Q2) A class system is a system of social stratification in which ________.
A)people are divided into various political groups and subgroups
B)a person's social rank depends upon his/her parentage
C)people join highly exclusive associations that forbid external interaction
D)personal ability and actions determine an individual's social status and mobility
Answer: D
Q3) Subcultures contribute very little to national culture and can be safely ignored when making marketing and production decisions.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Political Economy and Ethics
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/45499
Sample Questions
Q1) Which of the following philosophies maintains that a company's sole responsibility is to maximize profits for its owners?
A)utilitarian view
B)righteous moralist view
C)Friedman view
D)cultural relativist view
Answer: C
Q2) Under ________ law,the justice system decides cases by interpreting the law on the basis of tradition,precedent,and usage.
A)civil
B)international
C)common
D)theocratic
Answer: C
Q3) The cultural relativist view says that a company's sole responsibility is to maximize profits for its owners while operating within the law.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Economic Development of Nations
Available Study Resources on Quizplus for this Chatper
86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/45500
Sample Questions
Q1) One of the key obstacles faced by countries in economic transition is the lack of managerial expertise.
A)True
B)False
Q2) Rockwall Enterprises is planning to expand the firm by establishing operations outside of the U.S.In which of the following countries would Rockwall most likely be able to establish operations most quickly?
A)Japan
B)Brazil
C)Germany
D)Australia
Q3) CADE Enterprises,a U.S.manufacturer,received assistance from the Overseas Private Investment Corporation when it expanded operations into Saudi Arabia.Which of the following types of support did CADE most likely receive from OPIC?
A)financial capital
B)cultural training
C)legal guidance
D)political risk insurance
Q4) How are countries classified? Explain with examples.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: International Trade Theory
Available Study Resources on Quizplus for this Chatper
100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/45501
Sample Questions
Q1) The ability of a nation to produce a good more efficiently than any other nation is called its comparative advantage.
A)True
B)False
Q2) The danger of trade dependency is that ________.
A)it often leads to the exploitation of developed countries
B)political turmoils in a country might affect all dependent countries
C)the countries involved in trade often get into rivalry over trade tariff issues
D)it is difficult to end trade activities with current trade partners and find new trade partners
Q3) During which of the following stages of the international product life cycle theory does high purchasing power and buyer demand in an industrialized nation encourage a company to design and introduce a product concept?
A)product decline stage
B)new product stage
C)maturing product stage
D)standardized product stage
Q4) Discuss the dangers of trade dependency.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Political Economy of Trade
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/45502
Sample Questions
Q1) Which of the following is a method of restricting trade?
A)export financing
B)local content requirements
C)subsidy
D)foreign trade zones
Q2) Which of the following countries is seen as a threat to national cultures around the world?
A)United States
B)India
C)Russia
D)France
Q3) An embargo is the most restrictive nontariff trade barrier available.
A)True
B)False
Q4) Government trade promotion agencies ________.
A)enable imports at discounts
B)set up foreign trade zones across the country
C)advertise in other countries to promote the nation's exports
D)place voluntary export restraints on companies that fail to export adequately
Q5) Explain why governments impose restrictions on free trade.
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/45503
Sample Questions
Q1) Ownership restrictions is a method used by host countries to restrict incoming foreign direct investment.
A)True
B)False
Q2) Building a subsidiary abroad from the ground up is called a greenfield investment.
A)True
B)False
Q3) The ________ account within the United States' current account includes financial gains compensated to entities in other nations that is earned on assets they hold in the United States.
A)income receipts
B)income payments
C)merchandise
D)services
Q4) Rationalized production is a system of production in which each of a product's components is produced in the same location so that the cost of producing that product is lowest.
A)True
B)False
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/45504
Sample Questions
Q1) A(n)________ requires member nations to harmonize their tax,monetary,and fiscal policies and create a common currency.
A)customs union
B)economic union
C)free trade area
D)common market
Q2) Explain the concepts of trade creation and trade diversion.Who are the winners and losers in each scenario?
Q3) Which of the following statements is true of NAFTA?
A)It introduced a common currency for trade between the U.S. ,Mexico and Canada.
B)It overrode the local content requirements and rules of origin for products manufactured in the member nations.
C)It eliminated all tariffs and nontariff trade barriers on goods originating from within North America.
D)It called for stringent rules regarding government procurement practices and the imposition of countervailing duties.
Q4) Briefly describe regional integration efforts in Central America and the Caribbean.
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/45505
Sample Questions
Q1) Which of the following terms refers to a stock market with no central geographic location?
A)cybermarket
B)foreign exchange market
C)capital market
D)international bond market
Q2) Differentiate between currency speculation and currency arbitrage.
Q3) Why do governments impose currency restrictions and how can companies get around such restrictions?
Q4) The world's largest banks exchange currencies at spot and forward rates in the ________.
A)International Finance Corporation
B)Eurocurrency market
C)interbank market
D)World Bank
Q5) International transactions between two currencies other than the U.S.dollar often use the dollar as a vehicle currency.
A)True
B)False
Q6) What is the foreign exchange market? Explain why investors use this market.
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: International Monetary System
Available Study Resources on Quizplus for this Chatper
107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/45506
Sample Questions
Q1) Sam already knows that the ________ tells us how much of one currency we must pay to receive a certain amount of another.
A)exchange rate
B)par value
C)law of one price
D)purchasing power parity theory
Q2) A government buys its own securities on the open market when the ________.
A)inflation rate in the country is high
B)inflation rate in the country is low
C)interest rates in the country are high
D)interest rates in the country are low
Q3) As the unpredictability of exchange rates increases,so does the cost of insuring against the accompanying risk.
A)True
B)False
Q4) A company can improve its profits by selling in a country with a strong currency and sourcing from a country with a weak currency.
A)True
B)False
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/45507
Sample Questions
Q1) Explain participative management and accountability in a decentralized organization,and discuss the probable accountability issues in a global matrix structure.Include a description of the global matrix structure in your answer.
Q2) The main benefit of a multidomestic strategy is that it ________.
A)exploits scale economies in product development and marketing
B)is cost-saving due to product and marketing standardization
C)takes advantage of location economies
D)responds quickly and effectively to emerging buyer preferences
Q3) When should managers consider decentralized decision making? What type of work teams might emerge in organizations that practice decentralized decision making?
Q4) An organizational structure that splits the chain of command between product and area divisions is referred to as a(n)________ structure.
A)international area
B)international division
C)global matrix
D)global product
Q5) Describe the four key approaches to corporate strategy,providing an example of each.
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
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/45508
Sample Questions
Q1) Small and medium-sized companies often find trade missions very appealing because ________.
A)it gives companies an opportunity to visit new places
B)such trips are usually cheap even for the smallest of businesses
C)it provides access to important business officials and executives
D)it helps companies analyze the strategies of all major competitors
Q2) The process of collecting and analyzing original data and applying the results to current research needs is called primary market research.
A)True
B)False
Q3) If the income-elasticity coefficient for coffee is 0.5,the demand for coffee will ________.
A)decrease 0.5 percent for every 1.0 percent increase in income
B)increase 1.0 percent for every 5.0 percent increase in income
C)increase 0.5 percent for every 1.0 percent increase in income
D)decrease 0.5 percent for every 0.5 percent increase in income
Q4) Explain why the availability of data is a challenge when conducting international research.How do interviews and focus groups help in the availability of data?
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/45509
Sample Questions
Q1) Selling goods or services that are paid for,in whole or part,with other goods or services is called ________.
A)indirect exporting
B)countertrade
C)licensing
D)a joint venture
Q2) Which of the following statements is true of the strategic factors that influence a company's international entry mode selection?
A)Low tariffs and high quota limits encourage market entry by means of investment.
B)Companies that produce goods with high shipping costs prefer exporting.
C)Companies set up production units in a host market if the total cost of production is lower in the home market.
D)Markets that are likely to remain relatively small consider exporting as a viable option.
Q3) Typically,indirect exporting relies on local sales representatives or distributors.
A)True
B)False
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/45510
Sample Questions
Q1) Ben knows that a pricing policy in which one selling price is established for all international markets is called ________.
A)worldwide pricing
B)value-based pricing
C)dual pricing
D)arm's length pricing
Q2) A common example of a push strategy is the creation of consumer demand through direct marketing techniques.
A)True
B)False
Q3) A push strategy is a promotional strategy designed to pressure channel members to promote a product to final users.
A)True
B)False
Q4) Under the dual adaptation method,a company adapts its product to local requirements while retaining the product's original marketing communication.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 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/45511
Sample Questions
Q1) A major disadvantage of American Depository Receipts (ADRs)is that investors who buy them must pay currency-conversion fees.
A)True
B)False
Q2) ________ 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
Q3) If Verandas International chooses to pursue equity financing,but wants to avoid the time and money required to comply with stock exchange regulations,the company would most likely issue ________.
A)American Depository Receipts
B)bills of lading
C)equity shares
D)irrevocable letters of credit
Q4) Explain the concept of capital structure as it applies to a company with international 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/45512
Sample Questions
Q1) Which of the following is the first phase of human resource planning?
A)developing a plan to recruit and select people to fill vacant and anticipated new positions
B)estimating the company's future human resource needs
C)taking an inventory of the company's current human resources
D)promoting employees to positions of greater responsibility
Q2) The most basic level of training that can be given to the managers is ________.
A)language training
B)field experience
C)sensitivity training
D)environmental briefings
Q3) The process of forecasting both a company's human resource needs and its supply is called ________.
A)human resource planning
B)human resource accounting
C)recruitment
D)selection
Q4) 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