BUS 100 Chapter 3

European Union (EU)

The ______________ also known as the Common Market, is now an economic force to be recognized by even the most advanced economies such as of the United States and Japan.

International Trade Administration

What is the name of one of the United States federal agencies created to assist U.S. firms in developing export-promotion programs?

The International Monetary Fund (IMF)

Which of the following banks specifically makes short-term loans to developing countries experiencing balance-of-payment deficits?

Licensing

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:

Latin America

According to the International Monetary Fund (IMF), ___________ exports are growing annually. This region is home to 11 Free Trade Area countries.

. joint venture

Alibaba formed a partnership with Indian mobile wallet company, Paytm, to set up an online gaming company. This _________ is Alibaba's first significant international expansion.

increases; decreases

Currency devaluation ___________ the cost of foreign goods and _______ the cost of domestic goods to foreign firms.

Seven

Sub-Saharan Africa is home to __________ of the top-ten fastest-growing economies in the world.

China

The United States has the largest economy. Which nation has the second largest economy and represents the largest annual bilateral trade relationship with the United States?

World Trade Organization (WTO)

The organization established by the Uruguay Round of the GATT, whose purpose is to mediate trade disputes among nations is called:

decreasing job availability within a nation

There are many reasons for imposing trade restrictions, however Select____________ is not one of them.

Creation of a business that is organized outside of any nation and operates on a multinational level "at home" in most countries of the world

There are several methods for entering international trade. Which of the following is not a method for entering international trade?

Most-favored-nation status (MFN)

What is the famous principle of the General Agreement on Tariffs and Trade (GATT), which means that each member nation is to be treated equally by all contracting nations?

Canada and Mexico

Which countries are the United States' best trading partners for U.S. exports?

The North American Free Trade Agreement (NAFTA

Which of the following agreements, when ratified, created a free trade area among the United States, Mexico, and Canada?

Protection for new or weak industries

Which of the following is a reason for trade restrictions?

joint venture

Which option should you use to expand internationally?

Industrialized nations

Who supports multilateral development banks (MDB)?

Multinational enterprise.

A firm that operates on a worldwide scale without ties to any specific nation or region is known as a:

exporting

Licensing is perhaps the easiest method of entering into international trade. Another method of entering international trade, which can be relatively low risk, is Selecttrading companiestotally owned facilityjoint ventureexportingItem 1 which opens several levels of involvement to company.

A document issued by a transport carrier to an exporter to prove that merchandise has been shipped.

A bill of lading is defined as:

the United States; Canada

The economies of _______ and ____________are the most dynamic, efficient, and most integrated in the world.

To assist in financing the exports of American firms

What is the main function of the Export-Import Bank of the United States?

Import duty (tariff)

A country may attempt to protect its own domestic industries by imposing a(n) _____, a type of tax, on imported products.

he country is receiving more money from trade with foreign countries than it is paying out.

A country with a trade surplus generally has a favorable balance of payments, which means:

The IMF predicts a gradual global growth in both advanced and developing countries.

According to the International Monetary Fund (IMF), what are the world economic growth projections?

large banks

As trade has expanded internationally, many _____________ 1 have also become international in scope and have established branches in major cities around the world. This gives them the ability to provide their financial services where and when they are needed.

continue to produce coffee and trade it for U.S. products Brazil needs and cannot produce.

Brazil has excellent resources and expertise to farm and produce coffee beans, whereas the United States is ill-suited for the production of coffee. Brazil should:

Dumping

Nations may impose barriers to trade. Which of the following is not a barrier to trade?

tariffs

Products sold on Alibaba's website to foreign countries may be subject to taxes, or _____.

increased almost steadily

Since World War II international trade has ___________

to protect domestic jobs

Taobao has been placed on the U.S. Trade Representative office's blacklist of "notorious marketplaces" due to the website's sale of counterfeit products and violations of intellectual property rights. If this led the U.S. to enact trade restrictions on the import of specific products from China, which of the following would they likely site as a reason?

exporting

Taobao, an Alibaba company, is a Chinese online shopping website similar to Amazon or eBay. When Alibaba goes public, Taobao shop owners will be able to sell their goods to customers in the U.S. and other countries. Taobao shop owners will be _________ their goods to other countries.

a chance to grow and become self-sufficient

Temporary trade restrictions may be used to give a new business Select__________________

International Trade Administration

The Select___________ a federal agency, helps U.S. firms develop export promotion programs and gives assistance in competing in foreign markets by coordinating trade missions in foreign countries.

MFN

The United States is a party to many trade agreements and international trade organizations. Which of the following trade organizations does not have the United States as a member?

Competitive Advantage

The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations. As such, the United States sells software and engineering services to other countries and buys clothes and electronics. This is an example of:

The increase in trade volume over the past 65 years has been one of the most important factors in the rise of the living standards around the world.

The exporting trade in the United States has had a significant impact on the U.S. economy. In 2016, exports accounted for 11 million jobs—an increase of 3.3 million jobs since the 2009 recession. Which of the following is true about the impact of U.S. exports on the global economy?

to remove barriers to trade on a worldwide basis

The primary function of international economic organizations such as the World Trade Organization (WTO) is

Dumping.

The selling of products in a foreign country at lower prices than those charged in the producing country is called:

Advocacy Center

Which U.S. government export assistance program facilitates advocacy to assist U.S. firms competing for major projects and procurements worldwide?

U.S. Small Business Administration

Which government agency could possibly provide a loan of up to $5 million to a small U.S. business that needed a short-term loan to start an export business?

international Trade Administration

Which of the following U.S. government export assistance programs offers assistance and information to exporters through its domestic and overseas commercial officers?

It is an international organization of 164 nations dedicated to creating and maintaining tariffs and other barriers to world trade.

Which of the following is incorrect about the General Agreement on Tariffs and Trade (GATT)?

Small Business Administration

Which organization or U.S. government export program publishes guides that offer assistance and exporting information to small and medium-sized companies?

The Mexican fresh tomatoes were undercutting price levels of domestic fresh tomatoes.

While international trade is as logical as interstate trade, some nations restrict imports of certain goods for a variety of reasons. The United States recently restricted the import of fresh tomatoes from Mexico. Why did the United States restrict the imports of tomatoes?