Business Principles Chap 3

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

Advocacy Center

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

Canada and Mexico

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?

China

Who supports multilateral development banks (MDB)?

Industrialized nations

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

International Trade Administration

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?

MFN

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

Small Business Administration

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

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

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

The International Monetary Fund (IMF)

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?

U.S. Small Business Administration

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

World Trade Organization (WTO).

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:

comparative advantage.

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:

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

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

increases; decreases

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

seven

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?

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.

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

multinational enterprise.

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

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

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

Dumping

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

International Trade Administration

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

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

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?

Most-favored-nation status (MFN)

Which of the following is a reason for trade restrictions?

Protection for new or weak industries

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?

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

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

To assist in financing the exports of American firms

A bill of lading is defined as:

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

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

dumping.

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

import duty (tariff)

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

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