bus 101

How has terrorism affected global trade?

Terrorism has curtailed the liberal inflows of skilled and blue-collar workers.

Which of the following statements about dumping is true?

The U.S has passed laws to make dumping illegal.

Having a global vision simply means having a willingness to sell outside ones, within national borders, if and when the opportunity arises

True

Limitations on the number of certain types of goods that can be imported over a period of time are called import quotas.

True

The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be grown in Central Asia, this region can be said to have a(n):

absolute advantage

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:

free trade

World Trade Organization (WTO)

has emerged as the world's most powerful institution for reducing trade barriers and opening markets

: The European Union (EU) bans the importation of hormone-fed U.S. beef and bio engineered corn and soybeans on safety grounds although Americans eat this food every day. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of:

: protectionism

A counter-trade in international terms pertains to the sale of retail goods that are usually sold "over the counter."

False

According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

False

Armenia had a favorable balance of trade in 2018 when it exported $800 million in goods and services and imported $1.5 billion.

False

Expropriation is a political risk in which a country seizes the assets of a foreign firm and does not compensate the firm

False

Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.

False

The Uruguay Round of trade negotiation is an agreement that only affects trade among Latin American countries.

False

_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.

Imports

The _____ is an international bank that normally provides short-term loans to countries that are unable to meet their budgetary expenses.

International Monetary Fund

; _____ are goods and services that are made in one country and sold to other countries.

exports

A well-designed product transcends cultural barriers. It does not need to be changed to suit different countries or cultures.

false

If Syria gives Lebanon a tariff advantage over other countries, Lebanon has been given a biased tariff.

false

The Caucasus Mountains along the northeastern border of Georgia (one of the former Soviet republics) make it difficult for the nation to trade with other former Soviet republics that are to its north and east. The mountain range acts as a(n):

natural trade barrier

A(n) _____ is a tax levied by a nation on imported goods.

subsidy

Besides tariffs, a government can use a number of other tools to restrict trade. Which of the following is NOT a tool aimed at restricting trade?

subsidy

The International Monetary Fund (IMF) was created to promote trade through financial cooperation by working to eliminate trade barriers.

true

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

true

The tax the United States imposes on imported carbon steel products is called a tariff.

true

In international licensing, the license is the domestic firm that allows the licensee to use its trademark or brand.

ture

The Uruguay Round of trade negotiations:

was the most ambitious global trade agreement ever negotiated

One of the advantages multinational corporations have over other companies is their ability to sidestep regulatory difficulties.

True

Some multinational corporations are so large that they resemble small countries.

True

The opposite of free trade is protectionism.

True

The signing of the Central America Free Trade Agreement by the United States will more than likely not result in a major increase of U.S. exports.

True

Canada is currently the second largest nickel producer in the world. The reopening of the world-famous Moiseyev's Bay mine, which has total resources estimated at 124 million tons of nickel-bearing ore, should give Canada a clear:

comparative advantage

Nations sometimes form free-trade associations and establish areas where there are few if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones