Question 1

The world marketplace is shrinking and changing.One of the vehicles that has been instrumental in this change is the General Agreement on Tariffs and Trade (GATT).Explain what GATT is and how it has affected international business.

Accepted Answer

The answer of The world marketplace is shrinking and changing.One...

Question 2

A free trade area (FTA)is a formal agreement among two or more countries to
reduce or eliminate customs duties and nontariff trade barriers among partner
countries.

Accepted Answer

This definition accurately describes what a free trade area is.

Question 3

A common market and a monetary union are basically the same thing.

Accepted Answer

A common market refers to a group of countries that have agreed to reduce trade barriers and allow the free flow of goods, services, and capital within their borders. A monetary union, on the other hand, is a much deeper integration in which member countries share a single currency, a central bank, and a common monetary policy. While a monetary union can be seen as the ultimate form of a common market, they are not the same thing.

Question 4

In the U.S. ,the Federal Trade Commission (FTC)is in charge of cases where entities
are trying to mislead the public and commit fraud.

Accepted Answer

This is true. The FTC is tasked with protecting consumers from scams, fraudulent business practices, and deceptive advertising.

Question 5

Regulating international e-commerce does not require cross-border cooperation.

Accepted Answer

Regulating international e-commerce involves multiple countries and jurisdictions. It is therefore necessary for cross-border cooperation and collaboration between governments, organizations, and businesses to establish effective regulations and standards. Without such cooperation, it would be difficult to address issues such as tax laws, data privacy, and consumer protection in the rapidly growing e-commerce market.

Question 6

Currently,Britain and France remain the principal opponents of ceding any part of the
sovereignty of the nation-state to any future political union in Europe.

Accepted Answer

This statement is currently true. Britain and France have both expressed reluctance to cede sovereignty to a future political union in Europe.

Question 7

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

Accepted Answer

The 1993's Maastricht Treaty did not succeed the Treaty of Brussels. The Treaty of Brussels was signed in 1948, and it was the first step towards the creation of the European Union. The Maastricht Treaty, on the other hand, was signed in 1992 and it established the European Union as we know it today.

Question 8

A monetary union represents the fourth level of integration with a single common
currency among politically independent countries.

Accepted Answer

This statement is true. A monetary union is a form of economic integration where multiple countries agree to use a single currency and have a common central bank. Examples of monetary unions include the eurozone and the Eastern Caribbean Currency Union.

Question 9

Any start-up firm becoming global at its first inception is called as 'born again firm'.

Accepted Answer

The term for a start-up firm becoming global at its first inception is "born global firm", not "born again firm".

Question 10

One consequence of fungible content,information products,and electronic networks
is an additional assault on the power of national governments to regulate international
commerce.

Accepted Answer

Fungible content, information products, and electronic networks make it easier for businesses to operate globally without the need for physical presence in different countries. As a result, national governments find it more difficult to regulate international commerce and exert control over the flow of goods and services across their borders.

Question 11

To improve on GATT the WTO was established.Explain what the WTO is,how it is different from GATT,and what specific functions the WTO is expected to perform.

Accepted Answer

The answer of To improve on GATT the WTO was...

Question 12

Regarding regional integration,South American markets are still less open than those
of East Asia.

Accepted Answer

South American markets have lower levels of trade openness compared to East Asian markets. This can be attributed to several factors such as higher tariffs, non-tariff barriers, and limited infrastructure connectivity among countries in the region. Efforts are being made to increase regional integration in South America through initiatives such as the Union of South American Nations (UNASUR) and the Pacific Alliance, but there is still a long way to go to achieve a truly integrated regional market.

Question 13

FTAA stands for Free Trade Area of the Americas.

Accepted Answer

FTAA stands for Free Trade Area of the Americas, which is a proposed agreement that would create a free trade zone stretching from Alaska to Argentina.

Question 14

The U.S.government defines the multinational corporation for statistical purposes as
a company that owns or controls 60 percent or more of the voting securities,or the
equivalent of at least one foreign business enterprise.

Accepted Answer

The answer of The U.S.government defines the multinational corporation for...

Question 15

Two-thirds of world trade in goods and services is controlled by multinational
companies.

Accepted Answer

According to the World Trade Organization (WTO), "around two-thirds of global trade is undertaken by multinational corporations either through intra-company trade or arms-length transactions."

Question 16

It has been suggested that cooperative inter-relationships between countries (regional groupings)can be classified into five broad categories.Briefly summarize and describe each of these categories and indicate differences that may be present.

Accepted Answer

The answer of It has been suggested that cooperative inter-relationships...

Question 17

NAFTA is the free trade area among Canada,the United States,and Chile.

Accepted Answer

NAFTA is the free trade area among Canada, the United States, and Mexico.

Question 18

Some of the greatest challenges in trade in the next century will come in the areas of information technology and intellectual property.Describe these challenges,the mechanisms that are in place to protect one's intellectual property,and how trade in general will be affected.

Accepted Answer

The answer of Some of the greatest challenges in trade...

Question 19

A common market eliminates all tariffs and other barriers to trade among members of
the common market.

Accepted Answer

This is the defining feature of a common market, which goes beyond a free trade area in also allowing the free movement of factors of production (like labor and capital) across member countries.

Quiz 2: Economic Environment

The world marketplace is shrinking and changing.One of the vehicles that has been instrumental in this change is the General Agreement on Tariffs and Trade (GATT).Explain what GATT is and how it has affected international business.

A free trade area (FTA)is a formal agreement among two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries.

A common market and a monetary union are basically the same thing.

In the U.S. ,the Federal Trade Commission (FTC)is in charge of cases where entities are trying to mislead the public and commit fraud.

Regulating international e-commerce does not require cross-border cooperation.

Currently,Britain and France remain the principal opponents of ceding any part of the sovereignty of the nation-state to any future political union in Europe.

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

A monetary union represents the fourth level of integration with a single common currency among politically independent countries.

Any start-up firm becoming global at its first inception is called as 'born again firm'.

One consequence of fungible content,information products,and electronic networks is an additional assault on the power of national governments to regulate international commerce.

To improve on GATT the WTO was established.Explain what the WTO is,how it is different from GATT,and what specific functions the WTO is expected to perform.

Regarding regional integration,South American markets are still less open than those of East Asia.

FTAA stands for Free Trade Area of the Americas.

The U.S.government defines the multinational corporation for statistical purposes as a company that owns or controls 60 percent or more of the voting securities,or the equivalent of at least one foreign business enterprise.

Two-thirds of world trade in goods and services is controlled by multinational companies.

It has been suggested that cooperative inter-relationships between countries (regional groupings)can be classified into five broad categories.Briefly summarize and describe each of these categories and indicate differences that may be present.

NAFTA is the free trade area among Canada,the United States,and Chile.

Some of the greatest challenges in trade in the next century will come in the areas of information technology and intellectual property.Describe these challenges,the mechanisms that are in place to protect one's intellectual property,and how trade in general will be affected.

A common market eliminates all tariffs and other barriers to trade among members of the common market.