Question 1

A nation's balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time--usually one year.

Accepted Answer

This statement is true. The balance-of-payments statement is a record of all international financial transactions, including trade, investment, and financial flows, between a country's residents and those of other countries over a specified period of time.

Question 2

The creation of the World Trade Organization (WTO)is one of the biggest victories for free trade in decades.

Accepted Answer

The creation of the World Trade Organization (WTO) is considered a significant victory for free trade since it aims to promote freer trade and reduce barriers between countries.

Question 3

One of the most severe problems faced by international marketers today is the extremely high level of tariffs the world over.

Accepted Answer

While tariffs can be a challenge for international marketers, they are not necessarily the most severe problem faced today. Other challenges may include cultural differences, language barriers, political instability, and legal regulations.

Question 4

If there is a limit on the number of imported television sets from Mexico,this is called a quota.

Accepted Answer

A quota limits the amount of a specific item that can be imported or exported. Therefore, if there is a limit on the number of television sets that can be imported from Mexico, it is a quota.

Question 5

With respect to total trade,the United States trades more with Mexico than any other country.

Accepted Answer

As of the latest data, the United States trades more with China and Canada than with Mexico in terms of total trade volume.

Question 6

One of the justifications of protectionism is protection of cartels.

Accepted Answer

Protectionism is typically justified by arguments such as protecting domestic industries, preserving jobs, and national security, rather than protecting cartels, which are generally considered anti-competitive and illegal.

Question 7

At no time in modern economic history have countries been more economically interdependent.

Accepted Answer

With the rise of globalization and international trade, countries are more economically interdependent than ever before.

Question 8

As the value of the dollar declines to lower levels,American products are more expensive for foreign customers and American exports decrease;moreover,foreign products are less expensive for American customers and foreign imports increase.

Accepted Answer

When the value of the dollar declines, American products become cheaper for foreign customers, potentially increasing exports, while foreign products become more expensive for American customers, potentially decreasing imports.

Question 9

A government boycott is an absolute restriction against the purchase and importation of certain goods from other countries.

Accepted Answer

A government boycott is a policy measure in which a government refrains from purchasing or importing certain goods from other countries as a means of expressing disapproval or imposing political pressure. This can be a total ban or a partial restriction of imports, depending on the severity of the government's stance.

Question 10

Trade barriers are pesky hurdles to peace and prosperity.

Accepted Answer

Trade barriers, such as tariffs and quotas, can impede trade and limit economic growth and cooperation between countries. Removing trade barriers is often seen as a way to promote peace and prosperity through increased commerce and communication.

Question 11

the U.S.had a trade deficit.Since then,the U.S.has had a trade surplus.

Accepted Answer

This statement is false. The United States has had a trade deficit for many years, which means it imports more goods and services than it exports. There have been occasional surpluses in specific months or years, but the overall trend has been a deficit.

Question 12

which raised average U.S.tariffs on more than 20,000 imported goods to levels in excess of 60 percent.

Accepted Answer

The given statement correctly states that the average U.S. tariffs were raised on more than 20,000 imported goods to levels exceeding 60 percent.

Question 13

The French government continues to exclude American beef from the French diet based on disputes about mad cow disease.

Accepted Answer

The ban on American beef due to mad cow disease was lifted by the European Union in 2015, allowing imports of U.S. beef into France.

Question 14

If Germany agrees voluntarily to limit the number of automobiles exported to the United States,this would be an example of a quota.

Accepted Answer

A quota is a limit imposed by one country on the quantity of goods that can be imported from another country, and it is usually set by the importing country. If Germany agrees voluntarily to limit the number of automobiles exported to the United States, it would not be a quota because it is not being imposed by the United States government.

Question 15

Following the great economic boom of the late 1990s the number of American largest corporations remained approximately level through 2007 whereas during the same period Japanese largest corporations decreased from 22 to 8 corporations.

Accepted Answer

The statement accurately reflects the trend where the number of large American corporations remained stable, while the number of large Japanese corporations decreased significantly from 22 to 8 during that period.

Question 16

A tariff is a specific unit or dollar limit applied to a particular type of good.

Accepted Answer

A tariff is a tax imposed on imported goods and services, not a specific unit or dollar limit.

Question 17

Following the great economic boom of the late 1990s British corporations were no longer among the world's largest corporations.

Accepted Answer

This statement is not accurate. In fact, many British corporations remained among the world's largest corporations even after the economic boom of the late 1990s. Companies such as BP, HSBC, and Vodafone were still among the top global corporations in terms of revenue and market capitalization.

Question 18

Nations utilize legal barriers,exchange barriers,and psychological barriers to restrain entry of unwanted goods.

Accepted Answer

This statement is true. Nations use different types of barriers such as legal, exchange and psychological to restrict the entry of unwanted goods. Legal barriers can include tariffs, quotas, and regulations, while exchange barriers can include currency restrictions and export controls. Psychological barriers are usually aimed at reducing demand for foreign goods through nationalistic messages or product boycotts.

Question 19

A balance-of-payments statement includes the following: the current account,the past account,and the overdue account.

Accepted Answer

A balance-of-payments statement includes the current account, capital account, and financial account. It does not include a "past account" or an "overdue account."

Question 20

A government can effectively regulate its international trade position by various forms of boycotts and embargoes.

Accepted Answer

The answer of A government can effectively regulate its international...

Quiz 2: The Dynamic Environment of International Trade