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Multiple Choice
1. International business is often defined to include:
a. business transactions that involve two or more countries
b. the movement of services, capital, and personnel across national boundaries
c. the transactions of multinational firms
d. business transactions that involve two or more countries and the movement of services, capital, and
personnel across national boundaries
e. business transactions that involve two or more countries and the movement of services, capital, and
personnel across national boundaries and the transactions of multinational firms
2. Business transactions that involve entities from two or more countries are defined as:
a. international business
b. transcontinental business
c. expansive business
d. multilateral business
e. widespread business
3. In recent decades the share of U.S. gross domestic product in international trade has:
a. fallen from about 12 percent to 10 percent
b. nearly doubled
c. risen from about 10 percent to 12 percent
d. tripled
e. none of the other choices
4. International businesses face risks that include:
a. political risks
b. financial risks
c. regulatory risks
d. financial and regulatory risks
e. political, financial and regulatory risks
5. Which of the following is a risk that international businesses face:
a. political risks
b. financial risks
c. regulatory risks
d. all of the other specific choices are correct
e. none of the other specific choices are correct
6. Early trade customs for international commerce centered principally on the rules governing:
a. the concept of territory
b. sovereign jurisdiction
c. the law of the sea
d. nationality
e. the various local stock exchanges
7. Early trade customs included:
a. rights of shipping in foreign ports
b. salvage rights
c. fishing rights
d. freedom of passage
e. all of the other specific choices are correct
8. Early trade customs did NOT include:
a. rights of shipping in foreign ports
b. salvage rights
c. fishing rights
d. freedom of passage
e. all of the other specific choices were included in early trade customs
9. International commercial codes date as far back as:
a. Egyptians in 1400 B.C.
b. Cavemen at the dawn of time
c. the British in the 1700s
d. the Australian slave trade in the 1800s
e. 16th century France
10. During the Middle Ages, rules governing commercial transactions in Europe were known as:
a. the lex imperium
b. the lex mercatoria
c. the lex loci
d. the lex gentium
e. the lex populi
11. During the Middle Ages, rules governing commercial transactions in Europe were known as:
a. the lex imperium
b. the lex populi
c. the lex loci
d. the lex gentium
e. none of the other choices
12. Lex meractoria refers to:
a. ancient Egyptian trade law with foreign traders
b. rules governing commercial transactions in Europe in the Middle Ages
c. African trade rules
d. Roman law regarding banking and trade rules with the empire
e. Greek law regarding trade with the Ottoman Empire
13. Lex meractoria refers to:
a. ancient Egyptian trade law
b. Greek law regarding international crimes
c. African trade rules
d. Roman law regarding banks
e. none of the other choices are correct
14. Major source(s) of international commercial law is (are):
a. decisions of the Permanent Court of Commercial Justice
b. commercial laws of individual countries
c. trade agreements
d. commercial laws of individual countries and trade agreements
e. decisions of the Permanent Court of Commercial Justice and commercial laws of individual countries and
trade agreements
15. Which of the following is a main source of international commercial law:
a. laws of individual nations
b. laws defined by trade agreements between countries
c. rules enacted by worldwide or regional organizations
d. all of the other specific choices are correct
e. none of the other specific choices are correct
16. Which of the following is NOT a main source of international commercial law:
a. laws of individual nations
b. laws defined by trade agreements between countries
c. rules enacted by worldwide or regional organizations
d. all of the other specific choices are sources of international commercial law
e. none of the other specific choices are correct
17. The promotes private foreign investment through loans and guarantees and also provides technical and
managerial assistance on large capital projects.
a. World Bank
b. International Monetary Fund
c. World Trade Organization
d. Commission on International Trade Law
e. World Intellectual Property Organization
18. The promotes private foreign investment through loans and guarantees and also provides technical and
managerial assistance on large capital projects.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Trade Organization
d. Commission on International Trade Law
e. none of the other choices are correct
19. The is responsible for promoting international trade by working to promote the stability of government
finances and currency exchange rates.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Trade Organization
d. Commission on International Trade Law
e. United Nations
20. The is responsible for promoting international trade by working to promote the stability of government
finances and currency exchange rates.
a. World Intellectual Property Organization
b. World Bank
c. World Trade Organization
d. Commission on International Trade Law
e. none of the other choices are correct
21. The promotes international trade by working to reduce trade barriers and to establish uniform tariff schedules
and trade rules.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Trade Organization
d. Commission on International Trade Law
e. World Bank
22. The promotes international trade by working to reduce trade barriers and to establish uniform tariff schedules
and trade rules.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Bank
d. Commission on International Trade Law
e. none of the other choices are correct
23. The promotes uniformity in laws and discourages legal obstacles to trade.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Trade Organization
d. Commission on International Trade Law
e. World Bank
24. The promotes uniformity in laws and discourages legal obstacles to trade.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Trade Organization
d. World Bank
e. none of the other choices are correct
25. The is the principal court of the United Nations.
a. World Intellectual Property Organization
b. International Monetary Fund
c. International Court of Justice
d. Commission on International Trade Law
e. World Bank
26. The is the principal court of the United Nations.
a. World Intellectual Property Organization
b. International Monetary Fund
c. World Bank
d. Commission on International Trade Law
e. none of the other specific choices are correct
27. Today, international law can be enforced largely:
a. at the United Nations International Court
b. through international arbitration
c. in the courts of an individual country
d. through international arbitration and in the courts of an individual country
e. at the United Nations International Court and through international arbitration and in the courts of an
individual country
28. Of the various forums for resolving international commercial disputes, the least important is:
a. arbitration
b. International Court of Justice
c. domestic (national) courts
d. all of the other choices are of about equal importance
e. none of the other choices are used much
29. NAFTA is a trading agreement that promotes free trade. Which of these countries is a member?
a. Canada
b. Brazil
c. Uruguay
d. France
e. Great Britain
30. Which of the following countries is not a member of the North American Free Trade Agreement:
a. Canada
b. Brazil
c. Mexico
d. U.S.
e. all of the other choices are members
31. Although NAFTA was signed in 1992, it did not go into effect until:
a. 1993
b. 1994
c. 1998
d. 2000
e. 2010
32. Which of the following is an industry that is greatly affected by NAFTA:
a. agriculture
b. automobiles
c. pharmaceuticals
d. textiles
e. all of the other specific choices are correct
33. Which of the following is NOT an industry that is affected by NAFTA:
a. agriculture
b. automobiles
c. pharmaceuticals
d. textiles
e. all of the other specific choices are affected by NAFTA
34. Approximately how many consumers are in the trade area created by NAFTA:
a. 500,000
b. 5 million
c. 40 million
d. 400 million
e. 400 billion
35. Which of the following is a result of NAFTA:
a. greater Mexican protection of U.S. and Canadian intellectual property
b. prevention of U.S. companies evading U.S. environmental laws by going to Mexico
c. creation of a trade area with over 400 million consumers
d. all of the other specific choices are correct
e. none of the other specific choices are correct
36. The primary focus of the GATT and WTO negotiations has been:
a. to reduce trade barriers
b. to increase anti-competitive behaviors
c. to promote the use non-tariff barriers
d. to develop world-wide rules on human rights
e. none of the other choices
37. The primary focus of the GATT and WTO negotiations has been:
a. to reduce exchange rate fluctuations
b. to increase anti-competitive behaviors
c. to promote the use non-tariff barriers
d. to develop world-wide rules on human rights
e. none of the other choices
38. An organization was created to replace the GATT (General Agreement on Tariffs and Trade). This organization is:
a. the United Trade Organization
b. the International Trading Union
c. the World Trade Organization
d. the European Trade Organization
e. the Unified Trade Group
39. The World Trade Organization replaced the:
a. the United Trade Organization
b. the International Trading Union
c. the General Agreement on Tariffs and Trade
d. the European Trade Organization
e. the Unified Trade Group
40. Since 1995, the has overseen trade agreements and has worked to set up a dispute-resolution system using
three-person arbitration panels.
a. the United Trade Organization
b. the International Trading Union
c. the General Agreement on Tariffs and Trade
d. the World Trade Organization
e. the Unified Trade Group
41. When member countries of the World Trade Organization files a dispute with the organization, the dispute will be
resolved by:
a. the General Assembly of the United Nations
b. the Board of the International Monetary Fund
c. the World Bank
d. a three-person arbitration panel
e. the International Court of Justice
42. When member countries of the World Trade Organization files a dispute with the organization, the dispute will be
resolved by:
a. the General Assembly of the United Nations
b. the Board of the International Monetary Fund
c. the World Bank
d. the International Court of Justice
e. none of the other choices
43. A World Trade Organization arbitration panel has:
a. 3 people
b. 5 people
c. 10 people
d. 12 people
e. 15 people
44. Which of the following nations have agreed to eliminate tariff completely among themselves in ten industries:
a. the United States
b. Japan
c. Canada
d. France
e. all of the other specific choices are correct
45. The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to
eliminate tariffs completely among themselves in which of the following industries:
a. beer
b. construction equipment
c. distilled spirits
d. farm machinery
e. all of the other specific choices are correct
46. The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to
eliminate tariffs completely among themselves in which of the following industries:
a. furniture
b. medical equipment
c. paper
d. pharmaceuticals
e. all of the other specific choices are correct
47. The United States, Japan, Canada, countries of the European Union, and other industrialized nations agreed to
eliminate tariffs completely among themselves in which of the following industries:
a. steel
b. toys
c. paper
d. all of the other specific choices are correct
e. none of the other specific choices are correct
48. Which of the following industries is NOT one of the ones in which the United States, Japan, Canada, countries of
the European Union, and other industrialized nations agreed to eliminate tariffs completely among themselves:
a. furniture
b. medical equipment
c. paper
d. pharmaceuticals
e. all of the other specific choices are industries where the nations agreed to eliminate tariffs
49. Which of the following industries is NOT one of the ones in which the United States, Japan, Canada, countries of
the European Union, and other industrialized nations agreed to eliminate tariffs completely among themselves:
a. furniture
b. medical equipment
c. paper
d. computers
e. all of the other specific choices are industries where the nations agreed to eliminate tariffs
50. The WTO trade agreement is to reduce tariffs on a number of goods, including steel, farm machinery, furniture,
paper and medical equipment by:
a. 10%
b. 25%
c. 30%
d. 50%
e. 100%
51. WTO countries agree to reduce or eliminate government subsidies for which of the following:
a. business research
b. civil aviation
c. agriculture
d. all of the other specific choices are correct
e. none of the other specific choices are correct
52. WTO countries have NOT agreed to reduce or eliminate government subsidies for which of the following:
a. business research
b. civil aviation
c. agriculture
d. all of the other specific choices are correct
e. none of the other specific choices are correct
53. One area in which the U.S. was not successful in gaining trading concessions from its WTO partners to reduce
trade barriers was in:
a. construction equipment
b. film and television programming
c. civil aviation
d. agriculture
e. steel
54. France wanted to maintain trade barriers in which of the following industries due to fear of U.S. domination:
a. business research
b. civil aviation
c. agriculture
d. film and television programming
e. none of the other specific choices are correct
55. Which country wanted to maintain trade barriers in the film and television programming industry due to fear of
American domination:
a. Kenya
b. France
c. Guatemala
d. Spain
e. Germany
56. Restrictions on a country's imports are generally imposed for which of the following reasons:
a. the country cannot produce the good itself, but wants to make money on it
b. to generate revenue for the government
c. to cause tension with other countries
d. to reduce incentives for U.S. countries to outsource
e. none of the other choices are correct
57. Restrictions on a country's imports are generally imposed for which of the following reasons:
a. the country cannot produce the good itself, but wants to make money on it
b. to protect a country's domestic industries from foreign competition
c. to reduce competition with other countries
d. to reduce incentives for U.S. countries to outsource
e. none of the other choices are correct
58. Which of the following is a way to regulate imports:
a. import licensing procedures
b. quotas
c. testing requirements
d. all the other specific choices are correct
e. none of the other specific choices are correct
