167. Which of the following represents the highest level of involvement in international business?
a. Strategic alliance
b. Totally owned facilities
c. Multinational firm
d. Joint ventures
e. Exporting
168. Companies such as ExxonMobil and Mitsubishi operate on a worldwide scale without ties to any single country.
These are examples of
a. members of the Dow Jones Industrial Average.
b. global trading companies.
c. internationally owned facilities.
d. multinational enterprises.
e. foreign-domestic corporations.
169. Which of the following federal governmental agencies provides domestic and overseas commercial officers,
country experts, and industry experts?
a. Export Legal Assistance Network
b. International Trade Administration
c. Advocacy Center
d. American Business Center
e. U.S. Department of Transportation
170. The U.S. government created the as a comprehensive source for U.S. companies seeking information on
federal programs and activities that support U.S. exports.
a. Export Legal Assistance Network
b. Trade Information Center
c. National Export Strategy
d. ADB
e. Federal Trade Commission
171. XYZ Company wants to explore commercial opportunities in India and needs to consult with a country expert.
XYZ Company should consider seeking assistance from the
a. Advocacy Center.
b. International Trade Administration.
c. National Trade Data Bank.
d. Trade Promotion Coordinating Committee.
e. Export Legal Assistance Network.
172. The World Bank is an example of a(n) , supported by industrialized nations, including the United States.
a. ADB
b. IMF c.
MDB d.
EFTA
e. LAFTA
173. The Export-Import Bank of the United States
a. is owned and operated by Fortune 500 companies.
b. is an independent agency of the U.S. government.
c. aids foreign nations experiencing balance-of-payments problems.
d. guarantees credit to American buyers of foreign goods.
e. closed its operations in 1991.
174. is an internationally supported bank that provides loans to developing countries to help them grow.
a. A multilateral development bank
b. The International Development Bank
c. An international bank
d. The Federal Reserve
e. The International Monetary Fund
175. The was established in 1944 and offers low-interest loans and interest-free credit to developing countries?
a. World Bank
b. Inter-American Development Bank
c. European Bank for Reconstruction and Development
d. Small Business Administration
e. Trade Promotion Coordinating Committee
176. Who are the two largest contributors to the Asian Development Bank?
a. China and Japan
b. Japan and India
c. The United States and Japan
d. Russia and China
e. China and Indonesia
177. Mexico is experiencing balance-of-payments deficits and is seeking financial support. Mexico probably should seek
assistance from
a. the Export-Import Bank of the United States.
b. a multilateral development bank.
c. the Export-Import Bank of the United States.
d. the IMF.
e. the World Bank.
178. The IDB, ADB, and EBRD are all examples of
a. community banks.
b. foreign banks.
c. economic communities.
d. world trade organizations.
e. multilateral development banks.
179. Which of the following is false concerning the International Monetary Fund?
a. It has more than 150 member nations.
b. It makes short-term loans to developing countries.
c. Its loans are primarily to fund international trade.
d. Its loans to developing countries are interest free.
e. It is an international bank.
180. Which bank was established in 1991 to encourage reconstruction and development in the Eastern and central
European countries?
a. The Export-Import Bank of the United States
b. The MDB
c. The European Bank for Reconstruction and Development
d. The Inter-American Development Bank
e. The International Monetary Fund
181. China is trying to develop its international trade in electronic components, but it lacks the money to be successful.
From whom should China seek assistance?
a. The International Monetary Fund
b. The Inter-American Development Bank
c. The United States
d. The Federal Reserve
e. The Development Bank for Emerging Economies
182. Countries experiencing balance-of-payments deficits can obtain short-term loans from the
a. World Bank.
b. Export-Import Bank of the World.
c. African Development Bank.
d. International Monetary Fund.
e. Multilateral Development Bank of Central and South America.
183. Which bank includes main goals of promoting exchange rate stability and assisting in establishing a multilateral
system of panyments?
a. The Export-Import Bank of the United States
b. The Asian Development Bank
c. The International Monetary Fund
d. The Inter-American Development Bank
e. The Multilateral Development Bank
184. International business includes all business activities that involve exchanges across state boundaries.
a. True
b. False
185. Absolute advantage is the ability to produce a specific product more efficiently than any other nation.
a. True
b. False
186. By definition, every country has a comparative advantage in some product.
a. True
b. False
187. Comparative advantage is the ability to produce a specific product more efficiently than any other nation.
a. True
b. False
188. Purchasing raw materials or products in other nations and bringing them into one’s own country is known as
importing.
a. True
b. False
189. Selling and shipping raw materials or products to other nations is known as exporting.
a. True
b. False
190. If a country imports more than it exports, its balance of trade is said to be favorable.
a. True
b. False
191. When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion, it
had a trade deficit.
a. True
b. False
192. The United States has enjoyed a trade surplus during the last two decades.
a. True
b. False
193. The total flow of money into a country minus the total flow of money out of the country over some period of time is
called the nation’s balance of trade.
a. True
b. False
194. The total value of a nation’s exports minus the total value of its imports is known as the balance of payments.
a. True
b. False
195. Balance of payments is a much broader concept than balance of trade.
a. True
b. False
196. A tax that is levied on a foreign product entering a country is called an export tariff.
a. True
b. False
197. A tariff is a tax levied on a particular foreign product entering a country.
a. True
b. False
198. 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.
a. True
b. False
199. A complete halt to trading with a particular nation or in a particular product is called an embargo.
a. True
b. False
200. Quotas may be set on worldwide imports or on imports from a specific country.
a. True
b. False