• Question 1

    5 out of 5 points

    Tariffs are economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals.

    Selected Answer:

    False

  • Question 2

    5 out of 5 points

    A trade deficit occurs when a country is exporting more than it is importing.

    Selected Answer:

    False

  • Question 3

    0 out of 5 points

    Two forms of credit are associated with export financing: (_________) and (_________).

    Selected Answer:

    Loans and credit lines

  • Question 4

    5 out of 5 points

    Local content requirements do not hinder foreign exports from reaching a nation or from being purchased in the domestic market and place restrictions on domestic businesses.

    Selected Answer:

    False

  • Question 5

    5 out of 5 points

    (____________) can hinder foreign exports  from reaching a nation or from being purchased in the domestic market and place restrictions on domestic businesses.

    Selected Answer:

    Local content requirements

  • Question 6

    5 out of 5 points

    (_________) are the main beneficiaries of trade, which also makes them the primary victim of (_________).

    Selected Answer:

    Consumers; embargos

  • Question 7

    5 out of 5 points

    (_____________) risk is defined as the risk of loss resulting from inadequate or failed internal process, people and systems or from external events.

    Selected Answer:

    Operation risk

  • Question 8

    5 out of 5 points

    The United Nations and other global monitoring agencies classify nations with the lowest economic status as (___________) nations.

    Selected Answer:

    Developing

  • Question 9

    5 out of 5 points

    Which of the following is one of the political issues that significantly impact global business:

    Selected Answer:

    All of the above

  • Question 10

    5 out of 5 points

    Governments use quotas, also known as quantitative restrictions, to limit the quantity of imports allowed into a nation.

    Selected Answer:

    True

  • Question 11

    5 out of 5 points

    The (_______________) theory asserts that nations that vigorously pursue the quick development of economies of  scale in a given export may gain comparative advantage in that export.

    Selected Answer:

    New Trade Theory

  • Question 12

    5 out of 5 points

    In addition to attracting FDI on the national level, the United States’ FDI incentives are often offered on the (______) level to lure businesses and jobs to the (_______) economy.

    Selected Answer:

    State; local

  • Question 13

    5 out of 5 points

    Protectionism is the economic policy of applying tariffs on imported goods for government funding to reduce or eliminate the need for taxation on domestic industries.

    Selected Answer:

    True

  • Question 14

    0 out of 5 points

    Labor and production costs are typically higher in less developed nations.

    Selected Answer:

    True

  • Question 15

    5 out of 5 points

    In the case of “buy,” the investing corporation will seek an existing corporation in the target industry or market as a candidate for merger or acquisition.

    Selected Answer:

    True

  • Question 16

    5 out of 5 points

    The United Nations Conference on Trade and Development defines FDI as investments outside the investor’s home economy where the investor holds a 10 percent stake.

    Selected Answer:

    True

  • Question 17

    5 out of 5 points

    (_______) and (___________) costs are typically higher in less developed nations.

    Selected Answer:

    Labor and production

  • Question 18

    5 out of 5 points

    Negative net income from abroad corresponds to a credit in the current account.

    Selected Answer:

    False

  • Question 19

    5 out of 5 points

    The Factor Proportions Theory recognizes nations as having differing amounts of capital and labor and the ratio of those labor to capital endowments.

    Selected Answer:

    True

  • Question 20

    5 out of 5 points

    The application of any WTO rule assumes that developing nations will not change and comply increasingly with time.

    Selected Answer:

    False