Int. Marketing Chapter 2

The Soviet Union, as the leader of the Eastern bloc, developed the ___, which focused on developing strong linkages among the members of the Soviet bloc and discouraged relations with the west.

Council for Mutual Economic Assistance

The Export-Import Bank of the United States gives loans known as _____ that are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates.

Mixed aid credits

____ are special because they can affect currency values and the fiscal and monetary policies of governments, shape public perception of competitiveness, and determined the level of imports country can afford.

Exports

A restriction of foreign direct investments will result in less domestic control over industries.

False

Foreign direct investments tend to be equally distributed across all industries.

False

In order to be successful in international trade, policymakers must be willing to trade off long-term goals to achieve short-term objectives.

False

In the sugar and confectionary industries, tariffs tend to decrease with the degree of processing.

False

One key way to reduce trade deficits is to decrease exports.

False

The Smoot-Hawley Act reduced duties to increase the volume of imports into the United States.

False

The U.S. need is for reactive, ad hoc trade responses to specific situations.

False

The WTO has ceased to exist as a separate institution and has become part of the GATT.

False

The feudal system encouraged the development of an open-state economy.

False

The original goal of the International Monetary Fund (IMF) was to provide for variable exchange rates between member countries.

False

Which of the following statements is true about foreign direct investment?

Foreign investments may result in growing concern among policymakers about dependency on foreign owners

Providing preferential treatment to domestic bidders over foreign bidders, using national standards that are not comparable to international standards, placing emphasis on design rather than performance, and providing for general difficulties in the market entry of foreign products are examples of ____.

Nontariff barriers

The disappointment with past trade negotiations is mainly the result of ____.

Overblown expectations

Which of the following statements about the WTO is true?

Provisions are made at the WTO for decisions to be made by majority vote if a consensus cannot be achieved

The European Union is an example of a(n) ____.

economic bloc

Which of the following began in 1947 as a set of rules for nondiscrimination, transparent procedures, and settlement of disputes in international trade?

The General Agreement on Tariffs and Trade

Which of the following statements about the IMF is true?

The IMF contributed toward providing international liquidity and toward facilitating international trade

Which act raised duties to reduce the volume of imports into the United States, in hopes that this would restore domestic employment.

The Smoot-Hawley Act

Which currency is most accepted worldwide?

The U.S. dollar

The evolution of European feudalism was due to a function of ___.

Trade and marketing

What must policymakers do for the trade and investment negotiations between countries to be long-lasting?

Trade off short-term achievements for long-term goals.

Which of the following gave Congress the right to accept or reject trade treaties and agreements, but reduced the amendment procedures?

Trade promotion authority

Common coinage was developed in ancient Rome to ensure that business transactions could easily be carried out throughout the empire.

True

Government support in the form of export promotion assistance is appropriate if it increases market transparency.

True

Over the long term, the export activities of a nation are the key to the inflow of imports and therefore to the provision of choice, competition, and new insights.

True

The MFN is the equal opportunity clause of international trade.

True

The Transatlantic Business Dialogue (TBD) is a nongovernmental organization composed of business leaders from Europe and the United States.

True

The United States often attempts to transfer its own trade laws abroad, resulting in bilateral conflicts.

True

The World Bank was initially formed in 1944 to aid countries suffering from the destruction of war.

True

The availability of a large U.S. domestic market and the relative distance to foreign markets resulted in the U.S. manufacturers simply not feeling a compelling need to seek business beyond national borders.

True

The belief that international trade was a key to worldwide prosperity led the United States to create a "Pax Americana."

True

The competitive pressures exerted by imports work to keep quality high and prices low.

True

How much funding was required from members during the creation of the International Monetary Fund?

Twenty-five percent in gold or dollars, the rest in the members' local currency

The ___ has its origins in the GATT, to which it became the successor organization in January of 1995.

WTO

The International Bank for Reconstruction and Development is also known as the ____.

World Bank

Meat-eats, a business entity located in Miami has recently started promoting "Buying U.S.A.," a campaign that focuses on the purchase of meat products that are manufactured exclusively in the United States. This campaign would be projected as ___.

A nontariff barrier to trade

Which of the following measures by the Roman Empire contributed to the functioning of the international marketplace and to the reduction of business uncertainty.

An excellent communication system

Trade negotiations that are conducted between two nations are known as ____.

Bilateral negotiations

What is the term used for a firm founded with a global scope in mind from the very beginning?

Born global

Which of the following integrates the economic and political activities of nations?

Economic blocs

When a company expands its market by offering its products to international customers, it can produce more of its products efficiently, thus reducing the overall cost of each individual unit. This is known as ____.

Economies of scale

The authority to negotiate international agreements with a reasonable certainty that the negotiation outcome will not be subject to minute amendments must be given by Congress to the _____.

Executive branch

When U.S. firms work together to establish export promotion development, as allowed by the Export Trading Company Act of 1982, the companies are in effect forming a(n) ______.

Export consortia

Which of the following statements is true about exports?

Exporting makes a firm sensitive to different demand structures and cultural dimensions

"Voluntary" import restraints have been used mainly in areas such as textiles, automobiles, and steel, and are intended to ____.

Help domestic companies regain their trade prominence of years past

The WTO is responsible for all of the following except:

IMF

How has the U.S. Congress responded in light of persistent trade deficits, growing foreign direct investment, and the tendency of some firms and industries to seek legislative redress for failures in marketplace?

It provided more powers to the president to restrict trade

Which of the following statements about the GATT is true?

It was designed to operate by consensus.

When economic coordination between trading partners continues, leading trading nations will ____.

Lose their national sovereignty to some degree.

Policymakers will be sufficiently responsive in setting international trade policy objectives that increase opportunities for firms and choices for consumers when _____.

The voices of retailers, consumers,wholesalers, and manufacturers are heard

Which of the following is the result of a country's decision to impose restrictions on its foreign direct investments?

Tightened credit makers

What is the core mission of the WTO?

To facilitate international trade and investment.