WoB Chapters 3&4 Sample Questions

Protectionism

Uses artificial barriers to protect domestic industries

What is the total amount of money that flows in and out of a country?

Balance of payments

The World Trade Organization (WTO)

Has emerged as the worlds most powerful institution for reducing trade barriers in opening markets

A corporation has:

All of the above

Cool brands International has entered in agreement with Benny and Smith create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, Sundays and shakes. Call brands will pay Benny in smith Royal T4 the right to use the Crayola trademark. This is an example of

A licensing agreement

Canada is currently the Second largest producer of nickel in the world. The reopening of the World famous Voisey's Bay mine, which has total resources estimated at 124,000,000 tons of nickel bearing or, should give Canada a clear:

Comparative advantage

The development of new drugs expensive. For this reason Genentech, A large biotechnical company, as enter to a blank with Swiss...

Cooperation

Regarding sole proprietorships, partnerships and corporations which business organization form has the smallest number of firms?

Corporations

When grand metropolitan, a British company, purchased US based Pillsbury CO in order to expand its product line in the market for its existing consumer products, it was an example of

Direct foreign investment

In 1914, the United States prohibited the importation of Mexican avocados even though in Mexico is the worlds largest producer of the fruit. This prohibition remained in effect until 1996. The ban on importing Mexican avocados is an example of:

Embargo

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

Free trade zones

Who owns a corporation?

Everyone who owns a share of stock in the corporation

The most fundamental reason for the growth in world trade is probably due to the creation of free trade areas

False

Which of the following statements about the partnership as a form of business ownership is true?

Formation of the partnership is simple

The Ford motor company has investing $6 billion to build a "world car", the midsize Mondeo. The car is designed in the US, Germany, in the United Kingdom to be adaptable to any market in the world. Ford is what kind of company?

Multinational

Stewed tomatoes was an all girl power trio. It's three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created materville studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville staudios is an:

Partnership

The form of business ownership that has the most difficult in raising capital is the:

Sole partnership

The royal government of Bhutan imposes a 10% tax on all operating tables, examination tables, and dentist chairs imported it into Bhutan. Another name for this type of tax is a(n):

Tariff

The difference between the dollar value of its exports and imports represents a:

Trade deficit