Deck 2: Trade and Investment

Question 1

Which country is General Motors' largest growth market?

A)Germany
B)United States
C)France
D)India
E)China

Answer 1

E

Question 2

Historically a domestic issue for any given country,policies for ________ have recently been taken to the international realm.

A)higher education
B)manufacturing
C)telecommunications
D)agriculture
E)tourism

Answer 2

D

Question 3

___________ is the level of material affluence of a group or nation,measured as a composite of quantities and qualities of goods.

A)International business
B)Capital flight
C)Sovereignty
D)Quality of life
E)Standard of living

Answer 3

E

Question 4

Juan is an international business person who has become frustrated with the fact that in recent years,international trade organizations have been vetoing policy measures that would benefit his company and the local area. Instead,decisions are made based on worldwide influences. Juan's frustration highlights which significant change that has recently occurred in the global policy environment?

A)Strengthening of domestic policy influence
B)Reduction of domestic policy influence
C)Weakening of traditional international institutions
D)Strengthening of traditional international institutions
E)Sharpening of the conflict between industrialized and developing nations

Question 5

The movement of currency from nation to nation,which in turn determines exchange rates,refers to:

A)Currency flows
B)Capital flight
C)International expenditures
D)Financial quotas
E)Nontariff barriers

Question 6

Most-favored nation status is a term describing the ________ clause that calls for member countries to grant other member countries the same most-favorable treatment they accord any country concerning imports and exports.

A)GATT
B)WTO
C)IMF
D)NAFTA
E)EU

Question 7

More recently,a key focus of the WTO is in:

A)Reducing tariffs
B)Addressing nontariff barriers
C)Deregulating trade
D)Minimizing the spread of globalization
E)Establishing new trade routes

Question 8

As a result of the global financial crisis that began in 2007,the G-20 nations are working to broaden involvement to all nations. This shows that one of the lasting developments of the global financial crisis will be:

A)Deregulation
B)Ethics control
C)Coordination
D)Higher turnover
E)Accountability

Question 9

___________ is the supreme right of nations to determine national policies.

A)Quality of life
B)Foreign policy
C)National sovereignty
D)Knowledge transfer
E)Domestic will

Question 10

The three major changes that have occurred over time in the global policy environment include a weakening of the traditional international institutions,a reduction of domestic policy influence,and:

A)A sharpening conflict between democratic and communist nations.
B)An increasingly harmonious conflict between democratic and communist nations.
C)A sharpening of the conflict between industrialized and developing nations.
D)An increasingly harmonious relationship between industrialized and developing nations.
E)An increase in the number of developing countries that practice communism.

Question 11

Alfred is looking to determine his own level of well being. To do so,he is evaluating his standard of living combined with environmental factors,such as the quality of his work and home life. This is an evaluation of:

A)Standard of pay
B)Quality of life
C)Personal sovereignty
D)Intelligence quotient
E)Emotional intelligence

Question 12

_______ are taxes on an imported good or service intended to punish a trading partner.

A)Retaliatory taxes
B)Quotas
C)Applied tariffs
D)Punitive tariffs
E)Bound tariffs

Question 13

Which trade organization was signed by 23 nations in 1947 and is headquartered in Geneva,Switzerland?

A)European Union
B)World Bank
C)International Monetary Fund (IMF)
D)International Trade Organization (ITO)
E)General Agreement on Tariffs and Trade (GATT)

Question 14

Even though the __________ incorporated many farsighted notions,most nations refused to ratify its provisions. As a result,it was never implemented.

A)European Union
B)World Bank
C)International Monetary Fund (IMF)
D)International Trade Organization (ITO)
E)General Agreement on Tariffs and Trade (GATT)

Question 15

The __________ is an international financial institution created to facilitate trade.

A)NAFTA
B)ASEAN
C)WTO
D)GATT
E)World Bank

Question 16

The United States has run up a foreign trade deficit of hundreds of billions of dollars. Yet,nations are willing to trade with the U.S.through transfer of gold,foreign assets,and IOUs. This example demonstrates that:

A)Countries must have political stability and perceived economic security in order to receive deficit financing for international trade.
B)Countries with political stability and perceived economic security are more likely to receive deficit financing for international trade.
C)In the long run,not all nations are subject to the same economic rules.
D)Balance of payments must be maintained in the short run for all countries.
E)Balance of payments must be maintained for developing countries.

Question 17

Which round of WTO negotiations began in 2001?

A)Geneva Round
B)Uruguay Round
C)Doha Round
D)Tokyo Round
E)Annecy Round

Question 18

While the United States finds the use of growth hormones in beef cattle to be harmless to humans,many Europeans find them scary. As a result,the European Union restricts imports of American beef that contains growth hormones. This example demonstrates that:

A)Each country develops its own domestic policies
B)Policy aims never vary from nation to nation
C)International trade is less complicated than domestic trade
D)Countries must agree on compatible domestic policies if they wish to trade with one another
E)Use of growth hormones in beef cattle is bad business for the U.S.

Question 19

Charged with dealing with balance of payment problems,the __________ is a specialized agency of the United Nations established in 1944.

A)Internal Revenue Service (IRS)
B)World Trade Organization (WTO)
C)International Monetary Fund (IMF)
D)World Bank
E)European Union (EU)

Question 20

The core mission of the WTO is to:

A)Support international trade and investment
B)Put a stop to globalization
C)Restrict international trade
D)Provide ethics training to policymakers
E)Establish accountability measures in the world trade arena

Question 21

___________ is the flow of private funds abroad because investors believe that the return on investment or the safety of capital is not sufficiently ensured in their own countries.

A)Bartering
B)Money transfer
C)Technology transfer
D)Capital flight
E)Brain drain

Question 22

Which of the following IS NOT a reason for imposing restrictions on exports?

A)Provide local consumers with greater access
B)The interest of national security
C)Foreign policy purposes
D)Supply surplus
E)Desire to retain capital

Question 23

_________ credits are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates.

A)Punitive
B)Homogenous
C)Diversified
D)Mixed bag
E)Mixed aid

Question 24

Used to manage or distort trade rules,________ agreements result in self-imposed restrictions not covered by the WTO.

A)voluntary restraint
B)tariff-free
C)free trade
D)antidumping
E)punitive

Question 25

In 2009,the United States imposed a tariff on Roquefort cheese from France as well as other European products in retaliation for continued restrictions on U.S.hormone-fed beef. This tariff can best be described as:

A)Non-financial
B)Oppressive
C)Punitive
D)Illegal
E)Vindictive

Question 26

An increase in ___________ has contributed to a sharpening of the conflict between industrialized and developing nations

A)human rights awareness
B)animal rights awareness
C)environmental awareness
D)deregulation
E)globalization

Question 27

_________ is the migration of professional people from one country to another,usually for the purpose of improving their incomes or living conditions.

A)Bartering
B)Skills transfer
C)Technology transfer
D)Capital flight
E)Brain drain

Question 28

The term ________ refers to legal restrictions on import quantity of particular goods,imposed by governments as barriers to trade.

A)embargo
B)restraint agreement
C)barrier to trade
D)tariff
E)quota

Question 29

In the 1960s and 1970s,it was hoped that the developmental gap between industrialized nations and developing nations would gradually be closed. Today we see that:

A)The gap has indeed been closed
B)Most developing nations have surpassed developed nations in terms of standard of living
C)The gap has not closed to the degree that was expected
D)Developing nations struggle to a greater degree than industrialized nations as a result of the global recession
E)The gap has stayed the same

Question 30

In the United States,domestic employees working for subsidiaries of foreign firms receive on average a 32 percent higher salary than do their counterparts employed by domestic firms. This example illustrates which positive impact of foreign direct investment?

A)Capital formation
B)Regional and sectoral development
C)Favorable effect of balance of payments
D)Increased employment and higher pay
E)Internal competition and entrepreneurship

Question 31

Foreign direct investment is closely linked to:

A)Importing
B)Exporting
C)Knowledge transfer
D)Lowered standard of living
E)Licensing

Question 32

_______ are taxes on imported goods and services,instituted by governments as a means to raise revenue and as barriers to trade.

A)Trademarks
B)Quotas
C)Freight charges
D)Tariffs
E)Voluntary restraint agreements

Question 33

___________ tariffs are those maximum duties that a country has agreed to in WTO negotiations.

A)Applied tariff
B)Bound tariff
C)Embargo
D)Punitive tariff
E)Quota

Question 34

_________ measures are implemented primarily by nations that have accumulated and maintained large balance-of-trade surpluses.

A)Import restriction
B)Export restriction
C)Export promotion
D)Import promotion
E)Mixed aid promotion

Question 35

Because of ongoing famine in South America,the supply of Argentinean beef has gone down. What should the Argentinean government do to ensure that Argentineans themselves have access to home-grown beef?

A)Restrict exports of beef
B)Expand exports of beef
C)Restrict imports of grain used to feed cattle
D)Expand imports of Chilean beef
E)Do nothing

Question 36

_________ incentives are used to attract foreign direct investment that provide specific tax measures to attract the investor.

A)Fiscal
B)Financial
C)Nonfinancial
D)Tariff
E)Bartering

Question 37

Which of the following is a federal committee that is responsible for reviewing major foreign investments to determine whether national security or related concerns are at stake?

A)North American Free Trade Committee
B)Committee on Foreign Investments in the United States
C)International Monetary Fund
D)World Trade Organization
E)American Committee on Tariffs and Trade

Question 38

For decades,"buy American" campaigns have been prominent among consumers in the United States. Such campaigns are examples of:

A)Restraint agreements
B)Embargoes
C)Quotas
D)Tariffs
E)Nontariff barriers

Question 39

_____________ laws are designed to help domestic industries that are injured by competition from abroad due to imported products being sold at low prices.

A)Voluntary restraint
B)Antidumping
C)Punitive
D)Bound tariff
E)Mixed aid

Question 40

Which type of tariff includes those duties that are actually levied by the country?

A)Applied tariff
B)Bound tariff
C)Embargo
D)Punitive tariff
E)Quota

Question 41

The World Bank successfully met its goal of aiding the reconstruction of Europe but has been less successful in furthering the economic goals of the developing world and the newly emerging market economies in the former Soviet bloc.

Question 42

________ legislation is a trade policy that restricts trade to or from one country to another country.

A)Intellectual rights
B)Protectionist
C)Export
D)Free trade
E)Restricted trade

Question 43

The IMF is an international financial institution that deals with balance of payment issues on an international level.

Question 44

Retaliatory tariffs are a tax on an imported good or service intended to punish a trading partner.

Question 45

____________ negotiations are carried out between two nations focusing only on their own interests.

A)Unilateral
B)Multilateral
C)Polylateral
D)Bilateral
E)Restrained

Question 46

Bound tariffs are those duties that are actually levied by a country.

Question 47

National sovereignty is the area of public policy concerned with other countries.

Question 48

__________ gives Congress the right to accept or reject trade treaties and agreements,but reduces the amendment procedures.

A)Trade restriction right
B)Bilateral negotiating
C)Right-to-purchase
D)Negotiating authority
E)Trade promotion authority

Question 49

By encouraging that imported products are sold at low prices,antidumping laws are designed to help companies from abroad that are competing within a domestic country.

Question 50

Industrial dominance and technological dependence are negative impacts of foreign direct investment.

Question 51

Capital flight is the movement of currency from nation to nation,which in turn determines exchange rates.

Question 52

The government of Estonia recently announced that it would offer guaranteed government purchases,special protection from competition,and improved infrastructure facilities to foreign companies that would establish operations in Estonia. What types of incentives are being offered by the government?

A)Fiscal
B)Financial
C)Nonfinancial
D)Tariff
E)Bartering

Question 53

All nations have international trade and investment policies.

Question 54

Buy-domestic campaigns,preferential treatment for domestic bidders,and restrictions on market entry of foreign products such as heightened inspection procedures are all examples of nontariff barriers.

Question 55

The legal right resulting from industrial,scientific,literary,or artistic activity is referred to as:

A)Intellectual property rights
B)Individual property rights
C)Copyrighting
D)Knowledge transfer
E)Brain drain

Question 56

Mixed aid credits are composed partially of commercial interest rates and partially of highly subsidized developmental aid interest rates.

Question 57

Due to disagreements among sponsoring nations,the provisions of the General Agreement on Tariffs and Trade were never ratified.

Question 58

The WTO supplanted GATT in 1995 to administer international trade and investment accords.

Question 59

The Committee on Foreign Investments in the United States is charged with enhancing foreign trade and making sure that all major foreign investment deals go through.

Question 60

American voters often associate measures that restrict trade with domestic manufacturers closing factories and cutting jobs.

Question 61

Discuss the three major changes that have occurred over time in the global policy environment.

Question 62

________ is the area of public policy concerned with relationships with other countries.

Question 63

Legal rights resulting from industrial,scientific,literary,or artistic activity are referred to as international patent rights.

Question 64

Embodied in the 1948 Havana Charter,the __________ is a forward looking approach to international trade and investment that was never ratified.

Question 65

Capital risk is the flow of private funds abroad because investors believe that the return on investment or the safety of capital is not sufficiently ensured in their own countries.

Question 66

Financial incentives are monetary offers intended to motivate and attract foreign direct investment.

Question 67

_________ are taxes on imported goods and services,instituted by governments as a means to raise revenue and as barriers to trade.

Question 68

__________ agreements result in self-imposed restrictions not covered by WTO rules,and are used to manage or distort trade flows.

Question 69

____________ legislation is a trade policy that restricts trade to or from one country to another.

Question 70

Describe global trade regulation since 1995.

Question 71

____________ laws are designed to help domestic industries that are injured by competition from abroad due to imported products being sold at low prices.

Question 72

_____________ tariffs are a tax on an imported good or service intended to punish a trading partner.

Question 73

________ is the supreme right of nations to determine national policies.

Question 74

__________ incentives provide specific tax measures to attract foreign direct investment.

Question 75

Describe the positive and negative impacts of foreign direct investment on host countries.

Question 76

The ___________ refers to a migration of professional people from one country to another,usually for the purpose of improving their incomes or living conditions.

Question 77

Because capital inflows are often accompanied by capital outflows,the economic benefits of foreign direct investment can be controversial.

Question 78

__________ involve the movement of currency from nation to nation,which in turn determine exchange rates.

Question 79

The __________ supplanted GATT in 1995 to administer international trade and investment accords.

Question 80

Bilateral negotiations are trade negotiations among more than two parties.