Question 1

Promoting international monetary cooperation and facilitating the expansion and growth of international trade, is the primary purpose of the:

Accepted Answer

The International Monetary Fund (IMF) is primarily focused on promoting international monetary cooperation and facilitating the expansion and growth of international trade.

Question 2

The policies of a country aimed at encouraging global trade and marketing are referred to as:

Accepted Answer

Trade liberalization policies are aimed at promoting global trade and marketing by lowering trade barriers such as tariffs, quotas, and regulations. These policies encourage free exchange of goods and services between countries, thereby promoting economic growth and development. Protectionist policies, on the other hand, aim to protect domestic industries from foreign competition by imposing trade barriers, while trade sanctions are penalties imposed on countries that violate international trade agreements or engage in prohibited activities. Tariffs and import quotas are trade barriers that limit the flow of goods into a country, which can hinder global trade and marketing.

Question 3

Which of the following, when levied on imported goods, artificially raises their price thereby lowering their demand in the local markets?

Accepted Answer

Tariffs are taxes imposed on imported goods, which increase their price and can reduce their demand in local markets.

Question 4

The United States restricts its allies from trading with Libya.This type of restriction imposed by the government is known as:

Accepted Answer

An embargo is a government-imposed restriction that prevents trade with a specific country, in this case, Libya.

Question 5

Which of the following designates the maximum quantity of a product that may be brought into a country during a specified time period?

Accepted Answer

A quota is a trade restriction that sets a physical limit on the quantity of a product that can be imported into a country in a given timeframe.

Question 6

The procurement of goods and services by manufacturers from around the globe to take advantage of national differences in the cost and quality of various factors of production is referred to as:

Accepted Answer

Offshoring refers to the practice of sourcing goods and services from different countries to benefit from cost and quality differences in production factors.

Question 7

Which of the following is a method used by countries to avoid an unfavourable exchange rate?

Accepted Answer

Countertrade is a method used by countries to avoid unfavorable exchange rates by trading goods and services directly instead of using currency.

Question 8

The policies of a country aimed at restricting trade and global marketing are called policies.

Accepted Answer

Protectionist policies are designed to restrict trade and protect domestic industries from foreign competition.

Question 9

The penalties or restrictions imposed by one country over another country for importing and exporting of goods, services, and investments are called:

Accepted Answer

Trade sanctions are penalties or restrictions imposed by one country over another country for importing and exporting of goods, services, and investments, often used as a political tool to influence the target country's behavior. The other options do not accurately describe such penalties or restrictions. Trade liberalization policies refer to the removal or reduction of trade barriers. Free trade policies refer to policies that promote free trade between countries, without imposing barriers. Pricing policies refer to the pricing strategies used by businesses. Fair trade policies refer to policies that aim to promote fair prices and working conditions for producers in developing countries.

Question 10

A tax levied by the government on a good imported into a country is called a(n):

Accepted Answer

A tax levied by the government on a good imported into a country is called a tariff.

Question 11

The employees of a firm refusing to continue employment with a foreign firm or buy products from the firm on account of conflicts between the union and the employer is an example of a(n):

Accepted Answer

A boycott is a form of protest where employees or consumers refuse to engage with a company due to disputes or disagreements, often organized by a union.

Question 12

Which of the following provides loans, policy advice, technical assistance, and knowledge- sharing services to low- and middle-income countries in an attempt to reduce poverty?

Accepted Answer

The World Bank Group provides loans, policy advice, technical assistance, and knowledge-sharing services to low- and middle-income countries with the aim of reducing poverty and supporting development.

Question 13

Which of the following is a measure of how much one currency is worth in relation to another?

Accepted Answer

The exchange rate is the measure of how much one currency is worth in relation to another currency.

Question 14

A form of trade sanction that prohibits trading with a certain country or trading in specific goods by the signatory countries is called a(n):

Accepted Answer

An embargo is a trade sanction where signatory countries prohibit trading with a certain country or trading specific goods. A tariff is a tax on imported or exported goods, a quota is a specific limit on the quantity of a product that can be imported or exported, a trade agreement is a pact between countries intended to facilitate trade, and a duty is a tax on imported or exported goods.

Question 15

Local retailers refusing to buy goods from a foreign textile firm in response to the firm's violation of labour laws is an example of a(n):

Accepted Answer

A boycott is a form of protest where individuals or organizations refuse to buy or use a particular product or service as a way to express their disapproval of the company's actions or policies. In this case, the local retailers are refusing to buy goods from the foreign textile firm because the firm violated labour laws.

Question 16

The tax levied by the government on imported goods to make them more expensive and less competitive with domestic products is known as a(n):

Accepted Answer

A tariff is a tax levied on imported goods to make them more expensive and less competitive with domestic products.

Question 17

Which of the following was established to lower trade barriers, such as high tariffs on imported goods and restrictions on the number and types of imported products that inhibited the free flow of goods across borders?

Accepted Answer

GATT (General Agreement on Tariffs and Trade) was established to reduce tariffs and other trade barriers to facilitate international trade.

Question 18

Which of the following can benefit domestically made products by reducing the availability of imported merchandise?

Accepted Answer

The answer of Which of the following can benefit domestically...

Question 19

The primary purpose of IMF is to:

Accepted Answer

The primary purpose of the International Monetary Fund (IMF) is to promote international monetary cooperation, facilitate the expansion and balanced growth of international trade, and contribute to the stability of the international monetary system.

Question 20

The WTO differs from GATT in that GATT:

Accepted Answer

GATT (General Agreement on Tariffs and Trade) was established to lower trade barriers and facilitate the flow of goods across borders, whereas the WTO (World Trade Organization) is a formal institution that encompasses broader functions including trade negotiations, dispute settlement, and policy review.

Quiz 16: Marketing in the Global Environment Global Marketing