Part I:
Write "T" if the statement is true and "F" if the statement is false in the answer sheet provided
Problem 1. Regulatory controls are examples of non tariff barriers that countries use to protect local industries from foreign competition.
Problem 2. Doing business domestically or internationally requires conceptually different skills and knowledge.
Problem 3. The theory of comparative advantage suggests that a trade between countries occurs when one country is relatively more productive than others in the production of goods.
Problem 4. One of the numerous ways that a firm can obtain a sustainable competitive advantage is by achieving economies of scale.
Problem 5. The higher the value of a country's currency the more difficult it becomes for firms in that country to export their goods.
Problem 6. Quotas are taxes imposed on goods imported into a country during a specified time period.
Problem 7. The most favored nation principle requires that any preferential treatment granted to one country must be granted to all countries without exception.
Problem 8. Free Trade Zone is a form of regional economic integration.
Problem 9. The agreement between Mexico, United States, and Canada is an example of a common market.
Problem 10. Enforcement of intellectual property rights is of more concern to developing countries.
Part II:
1) _____was the most comprehensive trade agreement in history that created the World Trade Organization.
2) ________ is a method in which Customs duties or tariff are established and charges as a percentage of the transaction value of imported goods.
3)________ is an agreement between two or more countries whereby they eliminate tariffs and other import restrictions on one another's goods and establish a common external tariff on the goods from all other countries.
4) _______ is a currency that is freely convertible into other currencies.
5) ________ is the rate of exchange between two currencies for delivery, one for the other within say two business days.
6) ______ is selling abroad at a price lower than the cost of producing the product.
7) ___________is exclusive legal right of an authors, artists or publishers that you must obtain permission to use their resource.
8) ____________is the theory that deals with the return on specialization where substantial economies of scale are present.
9) __________is the direct exchange of goods or services between buyers and sellers without a cash transaction
10) ___________is the institution set up to maintain order in the international monetary system