International Marketing- Midterm Review- CH 3
The United States Agency for International Development (USAID) has as a primary mission the promotion of trade.
False Rationale: the United States Department of Commerce has as a primary mission the promotion of trade.
Which United Nations organization assists in developing countries in creating international trade relations and promotes the integration of trade, environment, and development? A. UNCTAD B. UNIDO C. FAO D. CIS
A. UNCTAD Rationale: The United Nations Conference on Trade and Development assists developing countries in creating international trade relations and promotes the integration of the trade, environment, and development.
Which organizations were created as a result of the Bretton Woods Agreement in 1944 to address the needs of global economic development, stability, and rebuilding? A. GATT and WTO B. IMF and World of Bank C. G8 and G7 D. UNDP and FAO
B. IMF and World Bank Rationale: the International Monetary Fund and World Bank were created with the purpose of addressing global economic development and creating political stability.
Restrictions imposed by the United States on Japan to protect the US automobile industry are known as: A. Voluntary import expansion B. Voluntary export restraints C. Non-automatic import licenses D. Automatic import licenses
B. Voluntary export restraints Rationale: voluntary export restraints were imposed on Japan in the 1980's to ensure that Japanese automobiles did not handicapped of the US automotive industry.
Tariffs are meant to: A. Discourage imports a particular goods B. Generate revenue C. Penalize countries imposing tariffs on goods from the importing country D. All of the above
D. All of the above Rationale: Tariffs have as goals discouraging imports, penalizing countries that are not politically aligned with the country, and generating revenues.
Foreign trade zones benefit international firms in all the following ways EXCEPT: A. FTZs lower prices for goods sold in the importing country B . FTZs are enclosed and safer than most ports. C. Just-in-time inventory can be shipped in bulk to FTzs D. Labeling, repairing, and sorting create jobs in the FTZ country
D. Labeling, repairing, and sorting creates jobs in the FTZ country. Rationale: the creation of jobs benefits the country, not the international firms.
The local content requirement requires that a certain percentage of a particular product be purchased and a second country.
False The rationale: the local content requirement requires that a certain percentage of a particular product can be purchased deuce locally, in the country of the companies target consumers.
The infant industry argument used against international firms is related to the protection of local employment in the respective country.
True Rationale: the employment protection argument used against international firms refers to the protection of local employment. The infant industry agreement is used to protect industries in their infancy.
The premise for the comparative advantage argument is that countries benefit from specialization.
True Rationale: the premise for the comparative advantage argument is that countries benefit from specialize Asian in an industry in which they have comparative advantage and from trading with one another. Add a worldwide scale, taking advantage of countries comparative advantage improves overall productivity and output of goods and increases the economic wealth of nations.