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1 | |
A business that produces goods in two or more countries is called an MBO.
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| | A) | TRUE
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| | B) | FALSE
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2 | |
The United States has a large trade deficit.
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| | A) | TRUE
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| | B) | FALSE
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3 | |
Changing US dollars into British pounds is called MRC trading.
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| | A) | TRUE
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| | B) | FALSE
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4 | |
A country charges a tariff on imported goods so that foreign companies can compete more effectively with local companies.
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| | A) | TRUE
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| | B) | FALSE
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5 | |
When Chrysler sells its cars in France, this is an example of Chrysler exporting its cars. |
| | A) | TRUE |
| | B) | FALSE |
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6 | |
If a US company refuses to build a plant in a foreign country because it disagrees with the way that that country treats its citizens, this is an example of a position based on:
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| | A) | human rights.
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| | B) | GATT.
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| | C) | NAFTA.
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| | D) | all of the above.
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7 | |
When a country exports more goods than it imports, it has a trade:
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| | A) | quota.
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| | B) | surplus.
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| | C) | deficit.
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| | D) | tariff.
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8 | |
All of the following are members of NAFTA EXCEPT:
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| | A) | United States
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| | B) | South America
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| | C) | Canada
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| | D) | Mexico
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9 | |
Exchanging US dollars for euros is an example of a(n) ______ exchange rate.
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| | A) | foreign
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| | B) | tariff
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| | C) | import
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| | D) | export
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10 | |
Suppose that a U.S. company wants to do business in France where the exchange rate for the euro is 1.05 to the dollar. This means that one dollar is worth ______ euros. |
| | A) | 1.05 |
| | B) | 0.95 |
| | C) | 0.85 |
| | D) | none of the above |
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11 | |
Suppose that a U.S. company wants to do business in Italy where the exchange rate for the rate for the euro is 1.05 to the dollar. This means that one euro is worth ______ dollars. |
| | A) | 1.05 |
| | B) | 0.95 |
| | C) | 0.85 |
| | D) | none of the above |
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12 | |
Suppose that a U.S. company wants to do business with a Japanese company when the exchange rate for the Japanese yen is 110 to the dollar. This means that one dollar is worth ______ yen. |
| | A) | 110 |
| | B) | 0.009 |
| | C) | 0.09 |
| | D) | none of the above |
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13 | |
Suppose that a U.S. company wants to do business with a Japanese company when the exchange rate for the Japanese yen is 110 to the dollar. This means that one yen is worth ______ dollars. |
| | A) | 110 |
| | B) | 0.09 |
| | C) | 0.009 |
| | D) | none of the above |
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14 | |
When a U.S. company sells its goods in Canada, this is called:
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| | A) | importing.
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| | B) | creating a tariff.
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| | C) | exporting.
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| | D) | following a quota.
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15 | |
If a U.S. company insists on labor standards at a certain level in order for it to do business in a foreign country, this is an example of a(n) ______ principle.
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| | A) | human rights
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| | B) | importing
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| | C) | exporting
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| | D) | licensing
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16 | |
When a US company buys goods in England and sells them in the US, this is an example of the US company using a(n) ______ strategy.
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| | A) | import
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| | B) | tariff
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| | C) | export
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| | D) | quota
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17 | |
What percentage of the world's population lives in the U.S.?
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| | A) | 1%
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| | B) | 5%
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| | C) | 20%
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| | D) | None of the above
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18 | |
When the U.S. imports more goods than it exports, this means that the U.S. has a trade ______ .
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| | A) | surplus
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| | B) | quota
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| | C) | deficit
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| | D) | tariff
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19 | |
When the U.S. bans U.S. companies from exporting goods to Iraq, and also bans goods from Iraq from being exported to the U.S., a(n) _____ exists.
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| | A) | quota
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| | B) | tariff
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| | C) | embargo
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| | D) | trade deficit
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20 | |
When a U.S. company purchases goods from Mexico and resells them in the U.S., this is an example of the U.S. company using a(n) ______ strategy.
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| | A) | importing
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| | B) | exporting
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| | C) | embargo
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| | D) | tariff
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2003 McGraw-Hill Higher Education