41) Free trade is the
A) movement of customers between nations that do not have trade embargoes.
B) policy of cost-free exchange of goods.
C) bartering of goods or services locally or globally.
D) bartering or sale of goods without taxes.
E) movement of products between countries without political or economic obstruction.
42) The United States uses government regulations, such as tariffs, embargoes, and import quotas,
to limit the import of goods and services and to protect U.S. industries against foreign competition.
________ is the use of these regulations.
A) Domestic protectionism
B) Blocking
C) Trade protectionism
D) Dumping
E) Export protectionism
43) A tax on automobiles imported into the United States that raises prices on imported vehicles to
make the price of cars produced in the United States more competitive is a(n) ________; a tax on
all oil imported into the United States, which is implemented to raise money for the U.S.
government, is a(n) ________ tariff.
A) protective tariff; revenue
B) revenue tariff; protective
C) quota tariff; revenue
D) embargo agreement; income
E) import barrier; income
44) Prior to 1990, the United States imposed a tax, known as a(n) ________, on automobiles
imported from Mexico.
A) licensing fee
B) tariff
C) embargo
D) import quota
E) export quota
45) An import quota is a(n)
A) trade barrier.
B) embargo.
C) sanction
D) export fee
E) type of dumping
46) The United States limits the amount of cheese purchased from other countries; this is a(n)
________ policy.
A) export quota
B) import dump
C) import quota
D) trade embargo
E) import tariff
47) Shrimpers in South Louisiana have accused China of selling shrimp in the United States at a
lower price than U.S. suppliers. The goal of the Chinese, they argue, is to drive down the price of
U.S. shrimp. The U.S. shrimpers are accusing the Chinese of
A) outsourcing.
B) applying import quotas.
C) trade protectionism.
D) dumping.
E) establishing an embargo.
48) ________ is prevented by quotas.
A) Outsourcing
B) Tariffs
C) Exporting
D) An embargo
E) Dumping
49) During the Cold War, the U.S. had a(n) ________with anyone importing Cuban cigars and
sugar.
A) tariff
B) limit agreement
C) export ban
D) embargo
E) protective quota
50) The WTO
A) oversees mergers between large multinational corporations.
B) monitors business start-ups globally.
C) monitors and enforces trade agreements.
D) ensures that multinational organizations are behaving ethically.
E) assists developing countries by loaning them money.
51) The purpose of the World Trade Organization is to
A) provide low-interest loans to developing nations for improving transportation.
B) monitor and enforce trade agreements.
C) provide medium-interest loans to developing nations for improving health.
D) assist in smoothing the flow of money between nations.
E) provide low-interest loans to developing nations for improving telecommunications.
52) The World Bank
A) finances worldwide mergers.
B) provides low-interest loans for improvements in developing nations.
C) facilitates banking operations for multinational organizations.
D) provides loans to communist nations.
E) monitors banks and credit unions globally.
53) What caused the World Bank’s chief economist to step down in 2018?
A) Morocco implemented a more flexible exchange system.
B) The European Union lost one million in trading capacity.
C) Brexit was announced.
D) President Trump threatened to pull the United States out of NAFTA.
E) Chilean officials claimed it deliberately skewed the country’s economic data.
54) The IMF has
A) helped support some weaker European countries during the recent financial crisis.
B) been very helpful in monitoring international terrorists.
C) ignored the cause of income inequality.
D) provided significant funding for business start-ups globally.
E) provided support to least-developed nations.
55) NAFTA and the EU are both
A) greenfield ventures.
B) world banks.
C) terrorist-monitoring associations.
D) monetary funds.
E) trading blocs.
56) Which of the following is true about the United States as a member of NAFTA?
A) It has lost high-skilled jobs.
B) It has gained employment in autos and aerospace.
C) It is a member with Canada and China.
D) It has signed an agreement that will last until 2025.
E) It helped to form NAFTA in 2008.
57) ________ is a trading bloc consisting of 28 trading partners in Europe.
A) The WTO
B) Mercosur
C) The European Union
D) The Eastern Union
E) The Atlantic-Mediterranean Union
58) ________ is the group of 21 Pacific Rim countries whose purpose is to improve economic and
political ties, and to reduce tariffs and other trade barriers across the region.
A) PEC
B) ASEAN
C) EU
D) APEC
E) CAFTA
59) When planning a trip to Spain, Brett and his wife, both Americans, were concerned about how
much they could afford to spend in Europe because sometimes the U.S. dollar will buy more goods
and sometimes it will buy less, based on changing economic conditions. The ________ rate is the
rate at which the currency of one area or country can be exchanged for the currency of another’s.
A) fluctuation
B) dividend
C) exchange
D) transaction
E) international
60) ASEAN is a(n)
A) trading bloc consisting of 10 countries in Asia.
B) association of American and Southeast Asian nations.
C) trading bloc consisting of 10 countries along the Atlantic Ocean.
D) worldwide banking association.
E) union of global nations that strives to bring about world peace.
61) Craig owns an international grocery store in New York, the World Market. He has benefited
highly from the trading bloc that allows him to purchase food products from Central American
nations at a nice discount. With many of his customers from Costa Rica, the Dominican Republic,
and Guatemala, he is particularly grateful for ________, a trading bloc.
A) APEC
B) CAFTA-DR
C) NAFTA
D) EU
E) Mercosur
62) The United States granted most favored nation trading status to China, which means that
A) Chinese tourists pay lower sales taxes when they visit the United States.
B) the United States has promised to aid China in its counterterrorist activities.
C) China receives favorable trading treatment, such as the reduction of import duties.
D) more Chinese immigrants are allowed to enter the United States.
E) China and the United States have agreed to place a trade embargo on certain nations in
Southeast Asia.
63) During global culture training for a group of employees who are being transferred to Egypt,
Charmaine, the HR training manager, remarked that “in the Arab world, men often hold hands,
which is meant to express ________.”
A) the acceptance of a business deal
B) solidarity and friendship
C) the acceptance of a future son-in-law into the family
D) friendship and collegiality
E) personal dominance
64) A nation’s culture is
A) the shared set of beliefs, values, knowledge, and patterns of behavior common to its people.
B) synonymous with its religious beliefs.
C) a shared set of business traditions common to the nation.
D) its constitution and written codes of behavior.
E) embedded in its laws that are accepted as moral imperatives by most of the citizens.
65) Hayley, from California, arrived in Saudi Arabia and immediately noticed that the way Saudi
men treat women is vastly different than the way men in the United States treat women. Hayley
was feeling uncomfortable and disoriented because she was experiencing
A) culture shock.
B) ethnocentrism.
C) reverse assimilation.
D) acculturation.
E) gender inequality.
66) ________ in a low-context culture.
A) E-mail is a very popular method of communicating
B) Citizens prefer to meet face-to-face rather than electronically
C) Shared meanings are derived primarily from written and spoken words
D) Meanings are derived primarily from situational cues
E) Life moves at a very slow pace
67) The GLOBE project is an ongoing cross-cultural investigation of nine cultural dimensions
involved in ________ processes.
A) family and relationship
B) leadership and organizational
C) MBO and planning
D) studying leadership
E) profit and cost-cutting
68) According to the GLOBE project, in-group collectivism refers to
A) how much patriotism and loyalty people should have for their country.
B) the degree to which a society’s members expect power to be distributed.
C) the extent that individuals are encouraged and rewarded for group loyalty versus pursuing
individual goals.
D) the extent to which a society encourages investment in the future, as by planning and saving.
E) the extent to which people should take pride in being members of their family, circle of close
friends, and work organization.
69) According to the findings of the GLOBE project, which country would be considered most
assertive?
A) United States
B) Greece
C) Germany
D) Spain
E) Denmark
70) Jillian will be relocating to Singapore in the next six months. Although many people speak
English, what would be a good use of her time in the next six months?
A) Learn the local language.
B) Teach a native how to speak English.
C) Employ a translator.
D) Rely on the goodwill and knowledge of others.
E) Use a translation app or device.
71) Monochronic time is a
A) preference for multitasking.
B) desire to do as little as possible for a period of time.
C) time for the open discussion of problems or challenges.
D) time when little is accomplished.
E) preference for doing one thing at a time.
72) Will and his fiancée Christy decided to have their wedding on a beach in Acapulco, Mexico.
Local businesses provided most of the services for the wedding, such as the limousine and the
catering services. Throughout the weekend of the wedding, the couple found that workers and
limos arrived late; so did the priest who was performing the wedding. In response to the couple’s
frustration, the Mexican workers remarked, “Ustedes tienen que ser flexibles,” which in English
means “You have to be flexible with time.” This attitude regarding time is
A) inflexible.
B) polychronic.
C) cultural.
D) monochronic.
E) one-dimensional.
73) ________ is a government’s seizure of a domestic or foreign company’s assets.
A) Expropriation
B) Diversification
C) Nationalization
D) An embargo
E) Appropriation
74) The ________ is the law that makes it illegal for employees of U.S. companies to make
“questionable” or “dubious” contributions to political decision makers in foreign nations.
A) Global Ethics Accord
B) Internationalist Agreement
C) PATRIOT Act
D) Expatriate Accord
E) Foreign Corrupt Practices Act
75) Kevin, a geologist from Arkansas who works for ExxonMobil, has decided to transfer to one of
ExxonMobil’s offices in Saudi Arabia. Kevin is a(n) ________ while living in Saudi Arabia.
A) globalist
B) internationalist
C) traitor
D) expatriate
E) migrator
76) Which of the following statements is FALSE?
A) The United States was the most competitive economy in 2017.
B) Global trade has helped lift hundreds of millions of Chinese out of poverty.
C) The presence of a few dominant companies in an industry makes it more difficult for
entrepreneurs to start a business in that sector.
D) Around the world, consumers are showing a robust appetite for the sharing-based economy.
E) Most Americans use their mobile devices for getting directions or listening to music rather than
making purchases.
77) Acme, Inc., which manufactures the fireworks that municipal governments buy to put on their
annual fireworks shows on the Fourth of July, moved most of its manufacturing operations from
the United States to China a decade ago. Now, Spark is moving production back to the United
States because the company’s managers are uncomfortable with many Chinese business practices.
Acme, Inc. engages in ________ when it moves its operations back to the United States.
A) offshoring
B) outsourcing
C) reshoring
D) globalizing
E) countertrading
78) Which of the following is NOT one of the BRICS countries?
A) Brazil
B) Russia
C) Indonesia
D) China
E) South Africa
79) Which statement is NOT true of the BRICS countries?
A) They are five major emerging economies in the world: Brazil, Russia, India, China, and South
Africa.
B) The BRICS countries are home to 40 percent of the world’s population.
C) In recent years, growth in China has slowed, and it is gradually losing its existing cheap labor
pool.
D) The BRICS countries have joined together to form a trading bloc.
E) A key advantage for India in the world economy is the fact that it has a large English-speaking
population.
80) Victor works for a company that highly values performance-oriented traits, such as achieving a
certain level of sales and increasing market share by a certain percentage. In analyzing this aspect
of Victor’s company, Geert Hofstede would examine the company’s ________ dimension.
A) individualism/collectivism
B) masculinity/femininity
C) power distance
D) uncertainty avoidance
E) assertiveness