Question 1

The United States is a democratic political system because

Accepted Answer

The United States is considered a democratic political system primarily because it relies on free elections and representative assemblies, allowing citizens to vote for their leaders and representatives in government.

Question 2

In which region are bribes illegal?

Accepted Answer

Bribery is illegal in North America, with strict anti-corruption laws in countries like the United States and Canada.

Question 3

Which form of protectionism is designed to raise money for the government?

Accepted Answer

Revenue tariffs are specifically designed to generate income for the government by imposing taxes on imported goods.

Question 4

When a government wants to make the prices of its goods more competitive, it would implement

Accepted Answer

The answer of When a government wants to make the...

Question 5

The United States, in 2017, decided it needed to protect its textile industry from a flood of imports from China. As a result, it implemented ________ to limit the textile products coming into the United States from China.

Accepted Answer

An import quota is a restriction placed by a country on the amount of a particular good that can be imported. In this context, the United States would use an import quota to limit the volume of textile products coming from China to protect its domestic industry.

Question 6

Widgets Inc. produced more widgets than it could sell in the United States, so it sold them below cost to African countries, which hurt widget manufacturers in Africa. This is a practice called

Accepted Answer

Selling products below cost in foreign markets to unload excess inventory or to undermine local competitors is known as dumping. This practice can harm local industries in the markets where the products are dumped.

Question 7

What is the main purpose of the International Monetary Fund?

Accepted Answer

The main purpose of the International Monetary Fund (IMF) is to make short-term loans to countries experiencing difficulties with their balance of payments. This helps countries stabilize their economies.

Question 8

The USMCA is a trade agreement among

Accepted Answer

The USMCA, which stands for the United States-Mexico-Canada Agreement, is a trade agreement among the United States, Canada, and Mexico. It replaced the North American Free Trade Agreement (NAFTA).

Question 9

How many countries are members of the Asia-Pacific Economic Cooperation (APEC)?

Accepted Answer

APEC has 21 member economies, not just countries, as it includes territories like Hong Kong and Taiwan.

Question 10

The theory of ________, in which countries specialize in goods that have a lower opportunity cost, is cited by supporters of free trade.

Accepted Answer

The theory of comparative advantage explains how countries benefit from specializing in and exporting goods for which they have a lower opportunity cost, supporting the argument for free trade.

Question 11

Affinity Technology has leadership team members in four different countries, has production facilities in three countries, and ships its products across the globe. Affinity is most likely a ________ corporation.

Accepted Answer

Affinity Technology, with leadership in four countries, production in three, and global shipping, fits the definition of a multinational corporation. This term describes companies that operate in multiple countries, beyond merely exporting products.

Question 12

The Maple Leaf Institute buys different educational support devices and resources from overseas and then sells them to schools in the United States. This situation best represents an example of

Accepted Answer

The Maple Leaf Institute is buying goods from overseas and selling them within the United States, which is the definition of importing.

Question 13

Veritas Textiles has been extremely profitable since opening its doors 10 years ago. The owner believes there is a market for its products overseas. If Veritas begins selling outside the country, they will be

Accepted Answer

When a company sells its products outside the country, it is engaging in exporting. This means it is sending goods or services to a foreign country for sale or trade.

Question 14

What would best represent a positive effect of trade in the global economy?

Accepted Answer

Increased diversity of people, products, services, and ideas is a positive effect of trade in the global economy because it allows for a broader exchange of cultures, innovations, and goods, enriching societies and economies.

Question 15

Despite the fact that the United States has access to oil domestically, it is forced to import much of its oil. This example best reflects that the United States does not have

Accepted Answer

The United States imports oil because it does not produce enough to meet its own needs, indicating a lack of self-sufficiency in oil production.

Question 16

Brazil is very good at manufacturing coffee but does not have easy access to automotive technology. Germany, on the other hand, has some of the best automotive technology in the world but does not have access to coffee. As a result, Brazil sells coffee to Germany and Germany sells automotive technology to Brazil. This best demonstrates the concept of

Accepted Answer

This scenario exemplifies the concept of comparative advantage, where each country specializes in producing goods for which it has a lower opportunity cost and then trades these goods, allowing both countries to benefit from the trade.

Question 17

India can operate numerous call centers compared to other countries due to low cost of labor and abundant labor force. India can best be described as having

Accepted Answer

The answer of India can operate numerous call centers compared...

Question 18

The United States can plant, grow, harvest, and sell corn more cheaply than any other country in the world. We can safely say that the United States has

Accepted Answer

The United States having the ability to produce corn more cheaply than any other country indicates a comparative advantage in corn production. This means the U.S. can produce corn at a lower opportunity cost than other countries, making it more efficient in corn production relative to other goods or services.

Question 19

A new mineral was discovered that doubles the life of batteries. After thorough research, it is determined the mineral can only be found and mined in Iceland. Iceland can best be described as having

Accepted Answer

Iceland has an absolute advantage in the production of this new mineral because it is the only country that can mine it, making it uniquely capable of producing this resource more efficiently than any other country.

Question 20

Japan is experiencing a rubber shortage but does not have the cash available to purchase the rubber from Germany. After negotiating, it agrees to pay for 40 percent of the rubber with cash and the remaining amount with computer equipment. This example best represents the concept of

Accepted Answer

This example best represents countertrading, where goods are exchanged for other goods instead of for currency. Japan is paying for part of the rubber with computer equipment instead of cash.

Quiz 16: Promotion Mix: Tools, Goals, and Strategies