Question 1

The OECD was formed to ________.
A) settle disputes arising from trade between developed and third-world countries
B) help member countries achieve sustainable economic growth
C) raise the standard of living in South American countries
D) control interest rates and inflation in member countries

Accepted Answer

The OECD (Organisation for Economic Co-operation and Development) was formed to help its member countries achieve sustainable economic growth through international cooperation, policy coordination, and facilitating trade. The other options are not the primary objectives of the OECD.

Question 2

Define parochialism. Discuss why parochialism is a problem for U.S. managers and discuss reasons why it is important to overcome parochialism in today's business environment.

Accepted Answer

The answer of Define parochialism. Discuss why parochialism is a...

Question 3

The World Trade Organization evolved from which of the following?
A) Mercosur
B) General Agreement on Tariffs and Trade
C) Truman Doctrine
D) Marshall Plan

Accepted Answer

The World Trade Organization (WTO) evolved from the General Agreement on Tariffs and Trade (GATT), which was established in 1947 as a multilateral trade agreement among various countries. The GATT evolved into the WTO in 1995 with a wider mandate to oversee and regulate international trade.

Question 4

The purpose of the OECD is ________.
A) to settle disputes arising from trade between developed and third-world countries
B) to help member countries achieve sustainable economic growth
C) to raise the standard of living in South American countries
D) to control interest rates and inflation in member countries

Accepted Answer

The OECD's main purpose is to promote economic growth and development, and to help member countries achieve sustainable economic growth through policy advice, statistics, and analysis.

Question 5

The forerunner of the Organization for Economic Cooperation and Development was the ________ that was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II.
A) Organization of European States
B) Organizational Council of Europe
C) Organization for European Economic Cooperation
D) Organization for European Investment

Accepted Answer

The organization that was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II was the Organization for European Economic Cooperation (OEEC). It later evolved into the Organization for Economic Cooperation and Development.

Question 6

The purpose of the World Trade Organization is to ________.
A) facilitate trade among member nations through a system of rules
B) recommend legislation to lessen the advantages of more advanced nations relative to developing countries
C) manage foreign currency exchanges to alleviate the effects of inflation
D) enforce quotas and tariffs imposed by member nations

Accepted Answer

The World Trade Organization exists to facilitate trade among member nations through a system of rules, such as reducing trade barriers, enforcing agreements, and resolving disputes. The other choices do not accurately describe the purpose of the WTO.

Question 7

The single European Union currency is called the ________.
A) deutchmark
B) krona
C) pound
D) euro

Accepted Answer

The Euro is the single European Union currency used by 19 out of the 27 EU member states. The other options listed, such as the deutchmark, krona, and pound, are currencies used by specific countries within the EU but are not the single currency used by the EU as a whole.

Question 8

List and discuss the three attitudes managers might have toward international business.

Accepted Answer

The answer of List and discuss the three attitudes managers...

Question 9

The World Trade Organization ________.
A) advises developing countries on issues of trade barriers
B) promotes long-term economic development and poverty reduction
C) exists to help countries conduct trade through a system of rules
D) facilitates trade among third-world countries and developed nations

Accepted Answer

The World Trade Organization exists to help countries conduct trade through a system of rules. It does not advise developing countries on issues of trade barriers nor does it only promote long-term economic development and poverty reduction. It also facilitates trade among developed nations, not just third-world countries.

Question 10

The ________ was formed by twelve member countries with the primary motivation of reasserting the region's economic position against the United States and Japan.
A) African Union
B) European Union
C) Central America Free Trade Agreement
D) Association of South-East Asian Nations

Accepted Answer

The European Union (EU) was formed by its member countries with the primary motivation of strengthening their collective economic position and competitiveness, particularly in relation to major global economies like the United States and Japan.

Question 11

The World Trade Organization was formed in the year ________.
A) 1995
B) 1967
C) 1971
D) 1983

Accepted Answer

The World Trade Organization (WTO) was formed on January 1, 1995.

Question 12

The ________ is a group of five closely associated institutions, all owned by its member countries, that provides vital financial and technical assistance to developing countries around the world.
A) International Chamber of Commerce
B) World Bank Group
C) Organization for Economic Cooperation and Development
D) World Economic Forum

Accepted Answer

The World Bank Group is a collection of five international organizations that aim to provide financial and technical assistance to developing countries around the world. The five institutions that make up the World Bank Group include: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID). The other options listed do not fit the description of the World Bank Group.

Question 13

One of the more recent trade alliances, which came into existence in 2002, is the ________ made up of 54 nations.
A) East African Community
B) African Union
C) South Asian Association for Regional Cooperation
D) Trans-Pacific Partnership

Accepted Answer

The African Union came into existence in 2002 and is made up of 54 African nations. The other choices are different trade alliances, but they are not the one described in the question.

Question 14

The United States belongs to a trade alliance known as CAFTA, which stands for ________.
A) Canadian American Free Trade Alliance
B) Columbian Argentine Free Trade Alliance
C) China Australia Free Trade Agreement
D) Central America Free Trade Agreement

Accepted Answer

CAFTA stands for Central America Free Trade Agreement, making option D the correct answer. Option A is incorrect because Canada is not part of CAFTA. Option B is incorrect because Colombia and Argentina are not part of CAFTA. Option C is incorrect because China and Australia are not part of CAFTA.

Question 15

Critics of the WTO claim that ________.
A) global trade destroys jobs and the natural environment
B) it favors third-world countries over developed countries
C) shifting jobs to developing countries harms the economies of member nations
D) has too little power to be effective

Accepted Answer

Global trade can destroy jobs and the natural environment.

Question 16

The North American Free Trade Agreement includes ________.
A) Mexico, Canada, and the United States
B) Canada, Mexico, the United States, and Costa Rica
C) the United States, Canada, Mexico, and Honduras
D) Canada, Mexico, Panama, and the United Sates

Accepted Answer

The North American Free Trade Agreement (NAFTA) includes Mexico, Canada, and the United States as its members. None of the other choices accurately describe the countries involved in NAFTA.

Question 17

Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________.
A) within the European Union because there would be no barriers to trade
B) in the United States because we have the same quality as any European company
C) in Switzerland because the Swiss are known for their fine detail work
D) in Asia because labor is cheaper there

Accepted Answer

Choosing a company within the European Union would be beneficial for Heinrich as there would be no barriers to trade, which would make the procurement process simpler and faster. Additionally, he wouldn't have to deal with extra paperwork or tariffs.

Question 18

The Association of Southeast Asian Nations is a trading alliance of ________.
A) eight Southeast Asian nations and Japan
B) eight Southeast Asian nations
C) ten Southeast Asian nations
D) ten Southeast Asian nations and China

Accepted Answer

The Association of Southeast Asian Nations (ASEAN) is made up of ten Southeast Asian nations, including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Japan and China are not members, though they have strong trade ties with ASEAN.

Question 19

One advantage of NAFTA has been ________.
A) less illegal immigration into the U.S.
B) lower unemployment in the U.S.
C) a higher standard of living in Mexico
D) lower costs for consumers in the United States

Accepted Answer

The answer of One advantage of NAFTA has been ________.
A)...

Question 20

The International Monetary Fund is an organization that ________.
A) rules on disputes over tariffs and subsidies
B) helps countries conduct trade through a system of rules
C) provides technical advice to developing countries
D) promotes international monetary cooperation

Accepted Answer

The International Monetary Fund (IMF) promotes international monetary cooperation and exchange rate stability, facilitates the balanced growth of international trade, and provides resources to help countries in need of financial assistance. While the IMF may provide some technical advice to developing countries, its main function is to promote stability in the global monetary system. The IMF does not rule on disputes over tariffs and subsidies - that falls under the purview of the World Trade Organization (WTO).

Quiz 3: Globalmanagement

The OECD was formed to ________.

Define parochialism. Discuss why parochialism is a problem for U.S. managers and discuss reasons why it is important to overcome parochialism in today's business environment.

The World Trade Organization evolved from which of the following?

The purpose of the OECD is ________.

The forerunner of the Organization for Economic Cooperation and Development was the ________ that was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II.

The purpose of the World Trade Organization is to ________.

The single European Union currency is called the ________.

List and discuss the three attitudes managers might have toward international business.

The World Trade Organization ________.

The ________ was formed by twelve member countries with the primary motivation of reasserting the region's economic position against the United States and Japan.

The World Trade Organization was formed in the year ________.

The ________ is a group of five closely associated institutions, all owned by its member countries, that provides vital financial and technical assistance to developing countries around the world.

One of the more recent trade alliances, which came into existence in 2002, is the ________ made up of 54 nations.

The United States belongs to a trade alliance known as CAFTA, which stands for ________.

Critics of the WTO claim that ________.

The North American Free Trade Agreement includes ________.

Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________.

The Association of Southeast Asian Nations is a trading alliance of ________.

One advantage of NAFTA has been ________.

The International Monetary Fund is an organization that ________.