Question 1

Which of the following trading partners of the United States became its number one "trade problem" at the beginning of the 21st century?

Accepted Answer

A)   United Kingdom
B)   Japan
C)   Germany
D)   Canada
E)   China

Question 2

What was the outcome for the GATT after the ratification of the Uruguay Round agreements?

Accepted Answer

A)   The GATT allowed the United States to increase its import tax.
B)   The GATT became part of the World Trade Organization.
C)   The 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.

Question 3

A specific unit or dollar limit applied to a particular type of good is called a(n) :

Accepted Answer

A)   trade license.
B)   quota.
C)   asterisk bill.
D)   predatory price.
E)   exchange rate.

Question 4

A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement?

Accepted Answer

A)   Investment account
B)   Receivables account
C)   Services account
D)   Credit account
E)   Official reserves account

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

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.

Accepted Answer

A)   exchange permits
B)   special drawing rights
C)   floating currencies
D)   gold rates
E)   dollar parities

Question 7

List the major agreements reached during the Uruguay Round of GATT negotiations. Which was the most notable achievement of the Uruguay Round?

Accepted Answer

An important objective of the United Sta...

Question 8

Which of the following falls on the minus side of the U.S. balance of payments?

Accepted Answer

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

Question 9

One of the basic elements of the General Agreement on Tariffs and Trade (GATT)  is that:

Accepted Answer

A)   member nations are exempt from import tariffs to other member nations.
B)   all tariffs shall be abolished among member nations at the time of membership.
C)   the World Court shall review all trade disputes and make final judgments.
D)   trade shall be conducted on a nondiscriminatory basis.
E)   trade in services and investments will be excluded from the purview of the GATT.

Question 10

In order to effectively secure foreign exchange, which of the following is most likely to be used by countries experiencing severe shortages of foreign exchange?

Accepted Answer

A)   Privatization
B)   Government approval
C)   Spot pricing
D)   Voluntary export restriction
E)   Monopoly

Question 11

Which of the following is an example of a nontariff trade barrier?

Accepted Answer

A)   Compound duties
B)   Revenue tariffs
C)   Fees for administrative and custom entry procedures
D)   Specific duties
E)   Taxes imposed by governments on goods entering at its borders

Question 12

Which of the following is one of the four ongoing activities supporting the growth of international trade?

Accepted Answer

A)   Warsaw Pact
B)   Kyoto Protocol
C)   International Monetary Fund
D)   World Summit on Sustainable Development
E)   Treaty of Waitangi

Question 13

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 most accurately referred to as a(n) :

Accepted Answer

A)   antidumping penalty.
B)   embargo.
C)   monetary barrier.
D)   orderly market agreement.
E)   voluntary export restraint.

Question 14

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 rather than dollars.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true about the status of protests against global financial institutions?

Accepted Answer

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.

Question 16

In general, tariffs weaken:

Accepted Answer

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.

Question 17

Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. markets.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following factors was primarily responsible for the excess in production capacity in the United States after World War II?

Accepted Answer

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.

Question 19

Which of the following is an adverse consequence of globalization?

Accepted Answer

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

Question 20

Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism.

Accepted Answer

A) True 
 B)False

Exam 2: The Dynamic Environment of International Trade

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 most accurately referred to as a(n) :

Correct AnswerverifiedShow Answer

Which of the following statements is true about the status of protests against global financial institutions?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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 rather than dollars.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following is one of the four ongoing activities supporting the growth of international trade?

Correct AnswerverifiedShow Answer

Which of the following falls on the minus side of the U.S. balance of payments?

Correct AnswerverifiedShow Answer

Which of the following trading partners of the United States became its number one "trade problem" at the beginning of the 21st century?

Correct AnswerverifiedShow Answer

Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism.

Correct AnswerverifiedShow Answer

Which of the following is an example of a nontariff trade barrier?

Correct AnswerverifiedShow Answer

A specific unit or dollar limit applied to a particular type of good is called a(n) :

Correct AnswerverifiedShow Answer

Which of the following factors was primarily responsible for the excess in production capacity in the United States after World War II?

Correct AnswerverifiedShow Answer

Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. markets.

Correct AnswerverifiedShow Answer

What was the outcome for the GATT after the ratification of the Uruguay Round agreements?

Correct AnswerverifiedShow Answer

List the major agreements reached during the Uruguay Round of GATT negotiations. Which was the most notable achievement of the Uruguay Round?

Correct AnswerverifiedAn important objective of the United Sta...View AnswerShow Answer

In general, tariffs weaken:

Correct AnswerverifiedShow Answer

Which of the following is an adverse consequence of globalization?

Correct AnswerverifiedShow Answer

In order to effectively secure foreign exchange, which of the following is most likely to be used by countries experiencing severe shortages of foreign exchange?

Correct AnswerverifiedShow Answer

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that:

Correct AnswerverifiedShow Answer

A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Which of the following trading partners of the United States became its number one "trade problem" at the beginning of the 21^st century?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An important objective of the United Sta...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified