BUSINESS QUIZ
1. If a small country wants to buy aircraft from the United States and the United States wants to export its aircraft, theUnited States may work through in removing preset trade barriers so that the small country can more easilypurchase the aircraft.
2. A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota.
True
False
3. An organization of nations formed to promote the free movement of resources and products among its members and tocreate common economic policies is called a(n)
A. economic community
B. free trade association
C. common market
D. international alliance
E. none of the above
4. If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows andarrows, it has a(n)
A. unfavorable balance of trade
B. trade deficit
C. trade surplus
D. negative cash flow
E. export slide
5. Landing Service
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability toproduce furniture more efficiently than any other company in the nation. In truth, no other companies in any othernation come close. Landing Service has shipped many of its products internationally. In fact, 80 percent of its profitscome from international sales. However, the Italian government has imposed a tax on imported furniture items toprotect local companies. The Brazilian government, on the other hand, has imposed taxes on Landing Serviceproducts due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out. However, afterLanding Service contacted the organization that had the power to mediate this situation, the furniture companyrealized that the taxation it was subjected to was legal and that there was nothing it could do about it.
Question - Because the company is known for its ability to produce lawn furniture more efficiently than any othercompany in the world, the company must have a(n) advantage.
A. total
B. relative
C. comparative
D. proportional
E. absolute
6. anding Service
Landing Service is a lawn furniture company that has been around for many years. It is known for its ability toproduce furniture more efficiently than any other company in the nation. In truth, no other companies in any othernation come close. Landing Service has shipped many of its products internationally. In fact, 80 percent of its profitscome from international sales. However, the Italian government has imposed a tax on imported furniture items toprotect local companies. The Brazilian government, on the other hand, has imposed taxes on Landing Serviceproducts due to the government wanting a piece of the pie.
Landing Service initially thought that these taxes were unfair because it was being singled out. However, afterLanding Service contacted the organization that had the power to mediate this situation, the furniture companyrealized that the taxation it was subjected to was legal and that there was nothing it could do about it.
What type of tax has the Italian government imposed on the company?
A. Export duty
B. Embargo
C. Revenue tariff
D. Protective tariff
E. Nontariff barrier
7. Strategic alliances and are very similar.
A. trading companies
B. most-favored-nation status
C. licensing agreements
D. joint ventures
E. corporate mergers
8. The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations.
The United States thus engages in
A. dumping
B. tariffing
C. importing
D. exporting
E. deficit trading
9. The United States wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose isa(n)
A. import duty
B. foreign exchange control
C. import quota
D. embargo
E. export duty
10. The World Trade Organization was created by the
A. Kennedy Round
B. United Nations
C. League of Nations
D. Tokyo Round
E. Uruguay Round
11. When Johnson & Johnson Vision Care, Inc., located in Jacksonville, Florida, sells its ACUVUE contact lenses to people inLondon, England, the company
A. is importing the lenses
B. is exporting the lenses
C. has an absolute advantage
D. is increasing the balance-of-trade deficit
E. is making a big mistake
12. Which of the following best defines balance of trade?
A. Purchasing products in other countries and bringing them into one's own country
B. The total value of a nation's exports minus the total value of its imports over some period of time.
C. The total flow of money into the country minus the total flow of money out of the country over some period of time
D. The ability to specialize in the production of a specific product and trade it for other needed products
E. The ability to produce a certain product more efficiently than any other nation
13. Which of the following functions is not performed by a trading company?
A. Taking title to products
B. Manufacturing products for foreign trading
C. Linking buyers and sellers in different countries
D. Buying products at the lowest price consistent with quality
E. Performing activities necessary to move goods to the foreign country
14. Which of the following is a potential drawback of licensing?
A. If quality is compromised, it may reflect poorly on the company providing the license.
B. Licensing will provide the original producer with much foreign marketing experience.
C. It is a relatively inexpensive way to market your product internationally.
D. It is an extremely expensive and highly involved method of international expansion.
E. It provides no compensation for the original company.
15. Who are the members of NAFTA?
A. The United States, Canada, and Mexico
B. Greenland, Iceland, and Canada
C. Guatemala, Honduras, and Mexico
D. The United States, Mexico, and Japan
E. The United States, Canada, and the United Kingdom.