Question 1

During the last few years,the benefits of free trade agreements in North America have been slowly diminished by

Accepted Answer

Delays at border crossings can hinder the efficient flow of goods, which diminishes the benefits of free trade agreements by increasing costs and reducing the speed of trade.

Question 2

What is the ability to produce something more efficiently than any other country called?

Accepted Answer

Absolute advantage refers to the ability of a country to produce a good more efficiently than any other country.

Question 3

Which of the following is a product made or grown domestically but shipped and sold abroad?

Accepted Answer

An export is a product made or grown domestically but shipped and sold abroad.

Question 4

What organization was founded in Pacific Asia for economic,political,social,and cultural cooperation?

Accepted Answer

ASEAN (Association of Southeast Asian Nations) was founded in 1967 in Pacific Asia for economic, political, social, and cultural cooperation among its ten member countries. CENTO (Central Treaty Organization), Warsaw Pact, NATO (North Atlantic Treaty Organization), and SEATO (Southeast Asia Treaty Organization) were all formed for different purposes and regions.

Question 5

When Walmart was forced to stop refunding price differences on items sold for less by other stores because the practice is illegal in Germany,Walmart discovered the effect of

Accepted Answer

Walmart's experience of being unable to refund price differences due to illegal business practices in Germany indicates the impact of business practice laws.

Question 6

Which of the following is not one of the goals of the WTO?

Accepted Answer

The reduction of corruption in countries is not one of the explicit goals of the WTO. The organization's focus is on promoting free and fair trade among its member nations through the reduction of trade barriers, the establishment of fair dispute procedures and the promotion of multilateral negotiations on trade. The WTO encourages its members to adopt practices that promote fair trade and transparency, but it is not directly involved in reducing corruption.

Question 7

The abbreviated name of the new free trade deal that is set to replace the North American Free Trade Agreement (NAFTA)is the

Accepted Answer

The United States-Mexico-Canada Agreement (USMCA) is the trade deal that replaced NAFTA.

Question 8

Which of the following is not true about protectionism?

Accepted Answer

Protectionism is not a revenue source for the provincial governments in Canada. While tariffs and quotas may provide revenue for the federal government, they do not benefit provincial governments directly.

Question 9

The ability to produce some products more efficiently than others is referred to as

Accepted Answer

Comparative advantage refers to the ability of a country or individual to produce a particular good or service at a lower opportunity cost than another country or individual.

Question 10

The largest free marketplace in the world is

Accepted Answer

The European Union is the largest free marketplace in the world, with a combined GDP of over $18 trillion and a population of over 500 million people. It allows for the free flow of goods, services, capital, and people among its member countries. NAFTA, ASEAN, Mercosur, and the Gulf Cooperation Council are regional economic agreements, but they are not as large as the EU.

Question 11

What is a product made or grown abroad but sold domestically called?

Accepted Answer

Import is a product made or grown abroad but sold domestically.

Question 12

Supporters of free trade in Canada argued all of the following except

Accepted Answer

The answer of Supporters of free trade in Canada argued...

Question 13

The Canadian government imposed a 34.6 percent tariff on barbecues made in China because complaints were received that Chinese companies were unfairly subsidizing the production of barbecues.This was an example of

Accepted Answer

A tariff is a tax imposed on imported goods. In this case, the Canadian government imposed a 34.6 percent tariff on barbecues made in China because complaints were received that Chinese companies were unfairly subsidizing the production of barbecues.

Question 14

What is the purpose of tariffs on imports?

Accepted Answer

The purpose of tariffs on imports is to maintain domestic competitiveness. Tariffs increase the cost of imported goods, making them less attractive and more expensive than domestic goods. This gives the domestic industries a competitive advantage and helps them maintain their market share. Additionally, tariffs also help protect domestic industries from foreign competition, which can be especially important for industries that are strategic or sensitive.

Question 15

The results for Canada from the North American Free Trade Agreement include all of the following except

Accepted Answer

Canada is one of the most trade-intensive countries in the G7, not the least.

Question 16

The Transparency International "Corruption Perceptions Index" showed that the least corrupt countries are ________,and the most corrupt countries are ________.

Accepted Answer

The answer of The Transparency International "Corruption Perceptions Index" showed...

Question 17

Canadians who were opposed to free trade feared all of the following except

Accepted Answer

Canadians opposed to free trade were concerned about cultural sovereignty, resource control, environmental standards, and job loss, but tying the Canadian dollar to the U.S. dollar was not a common fear associated with free trade agreements.

Question 18

The successor to GATT is

Accepted Answer

The World Trade Organization (WTO) is the successor to the General Agreement on Tariffs and Trade (GATT).

Question 19

What is the process by which the world economy is becoming a single interdependent market called?

Accepted Answer

Globalization is the process by which the world economy is becoming a single interdependent market, characterized by the free flow of goods, services, and capital across borders.

Question 20

The purpose of GATT was to

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was established to reduce or eliminate trade barriers such as quotas and tariffs, with the aim of promoting free trade between countries. It did not focus solely on improving trade balances in developing countries, stopping the practice of "dumping," or encouraging governments to increase protection for their domestic industries, although these issues may have been addressed indirectly through the promotion of free trade. Therefore, the best choice is B.

Quiz 5: The Global Context of Business