Question 1

A(n) ________ community is a group of nations organized to work toward common goals in the regulation of international trade.
A) joint venture
B) strategic marketing
C) economic
D) joint-stock
E) multilateral

Accepted Answer

The answer of A(n) ________ community is a group of...

Question 2

The EU helped unify Europe by adopting the euro as a common currency. Adopting a common currency has caused problems as stronger economic countries have had to prop up all the following European countries EXCEPT ________.
A) Cyprus
B) Portugal
C) France
D) Greece
E) United States

Accepted Answer

The answer of The EU helped unify Europe by adopting...

Question 3

Which of the following is an example of a raw material exporting economy?
A) Sweden
B) Russia
C) the United Kingdom
D) Chile
E) Brazil

Accepted Answer

Chile is an example of a raw material exporting economy as its economy heavily relies on exports of copper, wood, and fruits.

Question 4

Trusted Wholesalers is a company that currently purchases products made in Mexico and sells them to companies based in the United States and Canada. Trusted Wholesalers is considering whether to also purchase products produced in Costa Rica and the Dominican Republic. To make their decision, members of management at Trusted Wholesalers will most likely evaluate the agreements made by ________.
A) the EU
B) NAFTA
C) CAFTA-DR
D) MCAN
E) UNASUR

Accepted Answer

CAFTA-DR stands for the Dominican Republic-Central America-United States Free Trade Agreement, which is an agreement among the United States, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Since Trusted Wholesalers is considering purchasing products produced in Costa Rica and the Dominican Republic, evaluating the agreements made by CAFTA-DR would be the most relevant in making an informed decision about expanding their sourcing operations to these countries.

Question 5

Economic communities are also known as ________.
A) global firms
B) free trade zones
C) management communities
D) production communities
E) open channels

Accepted Answer

Economic communities are commonly referred to as free trade zones, which are regions where member countries have agreed to eliminate or reduce trade barriers and tariffs on goods and services traded between them. This promotes economic integration and cooperation among member states, leading to increased trade, investment, and economic growth.

Question 6

In a(n) ________, the vast majority of people engages in simple agriculture and consumes most of their output.
A) raw material economy
B) subsistence economy
C) industrializing economy
D) emerging economy
E) industrial economy

Accepted Answer

A subsistence economy is characterized by simple agriculture and self-sufficient communities. In this type of economy, people typically produce only enough food and goods to meet their own basic needs, with little surplus for trade or exchange. This type of economy is often found in rural or undeveloped areas, particularly in developing countries where access to resources and infrastructure is limited.

Question 7

Which of the following industrial structures presents the fewest market opportunities?
A) subsistence economies
B) raw material exporting economies
C) industrializing economies
D) emerging economies
E) industrial economies

Accepted Answer

Subsistence economies have very limited market opportunities as they are characterized by low levels of economic activity and lack of surplus for trade.

Question 8

Growing Green, a U.S. company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, wants to expand the business internationally. Growing Green managers are currently examining the rules imposed by the WTO and the agreements made by NAFTA and the EU. In which stage of the international marketing process is Growing Green?
A) deciding on the global pricing strategies
B) deciding which markets to enter
C) deciding how to enter the market
D) deciding on the global marketing program
E) looking at the global marketing environment

Accepted Answer

The answer of Growing Green, a U.S. company that markets...

Question 9

A(n) ________ economy is rich in one or more natural resources but poor in other ways and much of its revenue comes from exporting its natural resources.
A) industrial
B) industrializing
C) raw material exporting
D) subsistence
E) agrarian

Accepted Answer

A raw material exporting economy is one that relies heavily on exporting natural resources for revenue. This type of economy often struggles with lack of diversification and vulnerability to fluctuations in commodity prices.

Question 10

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.
A) communication adaptation
B) nontariff trade barriers
C) exchange controls
D) income distribution
E) transportation systems

Accepted Answer

The industrial structure is important in determining the types of goods and services that are produced, while income distribution is important in determining the buying power of consumers. A country with a well-developed industrial structure and a relatively equal distribution of income may be attractive as a market for a variety of goods and services.

Question 11

In 2005, the ________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.
A) CAFTA-DR
B) FTAA
C) CAN
D) NAFTA
E) EU

Accepted Answer

CAFTA-DR (Central American Free Trade Agreement-Dominican Republic) was established in 2005 to create a free trade zone between the United States and six Central American countries - Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. FTAA (Free Trade Area of the Americas) was a proposed agreement that aimed to create a free trade zone for all countries in the Americas, but it was never fully realized. CAN (Andean Community) is a South American trade bloc that includes Bolivia, Colombia, Ecuador, and Peru. NAFTA (North American Free Trade Agreement) is a trilateral agreement between the United States, Canada, and Mexico. EU (European Union) is a political and economic union of 27 member states in Europe.

Question 12

Formed in 1957, the ________ set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.
A) Uruguay Round
B) European Union
C) European Organization
D) European Central Bank
E) CAFTA

Accepted Answer

The European Union was formed in 1957 with the aim of creating a single European market, reducing barriers to the free flow of products, services, finances, and labor among member countries, and developing policies on trade with nonmember nations. The Uruguay Round refers to a series of international trade negotiations, CAFTA is a regional trade agreement, the European Organization is not a correct term, and the European Central Bank is focused on monetary policy rather than trade.

Question 13

Which of the following is an example of an economic community?
A) NATO
B) BRIC
C) NAFTA
D) GATT
E) WTO

Accepted Answer

NAFTA (North American Free Trade Agreement) is an economic community formed by the United States, Canada, and Mexico. It promotes trade and investment between the three countries by eliminating most tariffs, quotas, and other trade barriers. NATO (North Atlantic Treaty Organization) is a military alliance, BRIC (Brazil, Russia, India, China) is a grouping of emerging economies, GATT (General Agreement on Tariffs and Trade) was a multilateral agreement regulating international trade, and WTO (World Trade Organization) is a global organization dealing with the rules of trade between nations.

Question 14

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by ________.
A) the EU
B) NAFTA
C) CAFTA-DR
D) APTA
E) the BRIC countries

Accepted Answer

NAFTA (North American Free Trade Agreement) is a trilateral free trade agreement between the United States, Canada, and Mexico. As Trusted Wholesalers deals in trading with the United States and Canada with products produced in Mexico, being experts in NAFTA policies would benefit the company in understanding the regulations, barriers, and benefits of trading between these countries.

Question 15

Which of the following is a type of industrial structure?
A) marketing economies
B) subsistence economies
C) laissez-faire economies
D) capitalistic economies
E) socialistic economies

Accepted Answer

The answer of Which of the following is a type...

Question 16

Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union.
A) CAFTA-DR
B) FTAA
C) UNASUR
D) MCAN
E) GATT

Accepted Answer

The answer of Formed in 2004 and formalized in 2008,...

Question 17

Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda has a(n) ________ economy.
A) subsistence
B) marketing
C) merchandise exporting
D) raw material exporting
E) industrializing

Accepted Answer

Uganda's main exports of coffee, tea, cotton, and tobacco are all raw materials, suggesting that it has a raw material exporting economy.

Question 18

A country's ________ shapes its product and service needs, income levels, and employment levels.
A) international trade system
B) income distribution
C) industrial structure
D) political structure
E) foreign exchange system

Accepted Answer

Industrial structure refers to the composition of a country's economy in terms of various industries such as agriculture, manufacturing, and services. This industrial structure shapes the type of products and services needed by the population, as well as the level of income and employment in different sectors. For example, a country with a predominantly agricultural economy may have lower income levels and require different types of products and services than a country with a more developed manufacturing or service sector.

Question 19

Which of the following is a problem caused by a policy of the EU?
A) Barriers to the free flow of products, services, finances, and labor decreased.
B) Policies on trade with nonmember nations were developed.
C) Economic powers stepped in to prop up weaker economies.
D) Adopting a common currency decreased currency risk.
E) The EU represents one of the world's largest single markets.

Accepted Answer

The policy of the EU to prop up weaker economies has caused problems such as creating dependency and moral hazard, where countries rely on the support of others and may not take necessary steps to address underlying economic issues. This has been evident in the cases of Greece, Portugal, and other countries during the Eurozone crisis.

Question 20

In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.
A) GATT
B) the WTO
C) NAFTA
D) the EU
E) CAFTA

Accepted Answer

NAFTA (North American Free Trade Agreement) was established in 1994 as a free trade zone among the United States, Canada, and Mexico. GATT (General Agreement on Tariffs and Trade) and the WTO (World Trade Organization) are global trade organizations, not specific trade agreements between countries. The EU (European Union) is a trade bloc consisting of European countries, and CAFTA (Central American Free Trade Agreement) is a separate trade agreement between the United States and several Central American countries.

Quiz 19: The Global Marketplace

A(n) ________ community is a group of nations organized to work toward common goals in the regulation of international trade.

The EU helped unify Europe by adopting the euro as a common currency. Adopting a common currency has caused problems as stronger economic countries have had to prop up all the following European countries EXCEPT ________.

Which of the following is an example of a raw material exporting economy?

Economic communities are also known as ________.

In a(n) ________, the vast majority of people engages in simple agriculture and consumes most of their output.

Which of the following industrial structures presents the fewest market opportunities?

A(n) ________ economy is rich in one or more natural resources but poor in other ways and much of its revenue comes from exporting its natural resources.

The two key economic factors reflecting a country's attractiveness as a market are its industrial structure and its ________.

In 2005, the ________ established a free trade zone between the United States and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua.

Formed in 1957, the ________ set out to create a single European market by reducing barriers to the free flow of products, services, finances, and labor among member countries and developing policies on trade with nonmember nations.

Which of the following is an example of an economic community?

Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the policies developed by ________.

Which of the following is a type of industrial structure?

Formed in 2004 and formalized in 2008, ________ makes up the largest trading block after NAFTA and the European Union.

Coffee, tea, cotton, and tobacco are the main exports of Uganda. It is most likely that Uganda has a(n) ________ economy.

A country's ________ shapes its product and service needs, income levels, and employment levels.

Which of the following is a problem caused by a policy of the EU?

In 1994, ________ established a free trade zone among the United States, Canada, and Mexico.