Question 1

The European Union is an economic and political union of ________ member countries that have eliminated most barriers to the free flow of products,services,capital,and labor across their borders.

Accepted Answer

The European Union as of 2018 consisted of 28 countries that have eliminated most barriers to the free flow of products,services,capital,and labor across their borders.

Question 2

Coca-Cola has operations in all but three nations in the world and Pepsi-Cola is now available in more than 160 countries and territories,making the soft drink industry an example of

Accepted Answer

Global competition exists when firms originate,produce,and market their products and services worldwide.The familiar "cola war" waged by Pepsi-Cola and Coca-Cola in the United States has been repeated around the world,including in India,China,Myanmar,and Argentina.

Question 3

A trade war is initiated when

Accepted Answer

The WTO reviews more than 200 trade disputes annually for the purpose of mitigating trade wars between countries.A trade war is a situation in which countries try to damage each other's trade,typically by imposition of tariff and quota restrictions.

Question 4

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU)have adopted a common currency,which is called the

Accepted Answer

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU)have adopted a common currency,which is called the euro.

Question 5

Global competition exists when

Accepted Answer

Key term definition-global competition.

Question 6

An institution that sets rules governing trade between its members through a panel of trade experts who decide on trade disputes between members and issue binding decisions is referred to as the

Accepted Answer

Key term definition-World Trade Organization (WTO).

Question 7

To eliminate the need to continually monitor currency exchange rates,________ of the countries in the European Union (EU)have adopted a common currency called the euro.

Accepted Answer

To eliminate the need to continually monitor currency exchange rates,16 of the countries in the European Union (EU)have adopted a common currency,which is called the euro.

Question 8

The North American Free Trade Agreement was designed to encourage free trade between

Accepted Answer

The North American Free Trade Agreement lifted many trade barriers between Canada,Mexico,and the United States and created a marketplace with more than 475 million consumers.

Question 9

In terms of the global marketplace,there are three primary types of companies: ________ firms,multinational firms,and transnational firms.

Accepted Answer

Three types of companies compete in the global marketplace: international firms,multinational firms,and transnational firms.

Question 10

There are ________ World Trade Organization countries,including the United States,which account for more than 90 percent of world trade.

Accepted Answer

The World Trade Organization (WTO)was formed in 1995 to address an array of world trade issues.There are 162 WTO member countries,including the United States,which account for more than 90 percent of world trade.

Question 11

The EU has benefited its member nations in part because

Accepted Answer

The EU has benefited marketers because firms do not need to market their products and services on a nation-by-nation basis.Rather,pan-European marketing strategies are possible due to greater uniformity in product and packaging standards;fewer regulatory restrictions on transportation,advertising,and promotion imposed by countries;and removal of most tariffs that affect pricing practices.

Question 12

CAFTA-DR is a comprehensive free trade agreement between Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,Nicaragua,and

Accepted Answer

CAFTA-DR is a comprehensive free trade agreement among Costa Rica,the Dominican Republic,El Salvador,Guatemala,Honduras,Nicaragua,and the United States.

Question 13

Russia currently has a limit on pork of 400,000 metric tons annually that can be imported from any country.This restriction would be considered a

Accepted Answer

A quota is a restriction placed on the amount of a product allowed to enter or leave a country.In this case,the Russian government has protectionist quota policies restricting the amount of pork imports.

Question 14

When firms originate,produce,and market their products and services worldwide,it is referred to as

Accepted Answer

Key term definition-global competition.

Question 15

Which of the following statements about the World Trade Organization (WTO)is most accurate?

Accepted Answer

The major industrialized nations of the world formed the WTO in 1995 to address an array of world trade issues.The 162 WTO member countries,including the United States,account for more than 90 percent of world trade.The WTO is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.

Question 16

The European Union (EU)consists of 28 countries with about 750 million consumers.The EU has eliminated most barriers to the free flow of products,capital,and labor across its borders.Which of the following countries is not a member of the EU?

Accepted Answer

Switzerland is not one of the 28 countries in the EU (as of 2018).

Question 17

The European Union (EU)has been beneficial to electronic commerce because it is no longer necessary to

Accepted Answer

One benefit of the EU was the adoption of the euro,which has been a boon to the electronic commerce in the EU by eliminating the need to continually monitor currency exchange rates.

Question 18

The EU has benefited firms in its member nations because

Accepted Answer

The EU has benefited marketers because firms do not need to market their products and services on a nation-by-nation basis.Rather,pan-European marketing strategies are possible due to greater uniformity in product and packaging standards;fewer regulatory restrictions on transportation,advertising,and promotion imposed by countries;and removal of most tariffs that affect pricing practices.

Question 19

Which of the following statements about the World Trade Organization (WTO)is most accurate?

Accepted Answer

The WTO is a permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.The WTO reviews more than 200 trade disputes annually for the purpose of mitigating trade wars between countries.

Question 20

The World Trade Organization (WTO)refers to

Accepted Answer

Key term definition-World Trade Organization (WTO).

Quiz 7: Understanding and Reaching Global Consumers and Markets