Question 1

NAFTA regulates trade between the United States,Europe,and Japan.

Accepted Answer

NAFTA (North American Free Trade Agreement) is a trilateral trade agreement between the United States, Canada, and Mexico, and does not include Europe or Japan.

Question 2

How does globalization of business benefit shareholders of an organization?

Accepted Answer

Globalization of business can lead to increased profitability through expanded markets and access to cheaper resources and labor in developing countries. This can create higher returns on investment for shareholders.

Answer A, B, D, and E are not accurate as they do not directly benefit shareholders of an organization.

Question 3

Under which of the following treaties are Canada,the United States,and Mexico gradually eliminating tariffs and all other trade barriers?

Accepted Answer

The North American Free Trade Agreement (NAFTA) is a treaty signed by Canada, the United States, and Mexico with the goal of gradually eliminating all trade barriers and promoting economic growth and cooperation between the three countries.

Question 4

Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas for most of the world's countries?

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was a treaty signed in 1948 with the goal of reducing trade barriers such as tariffs and quotas. It was signed by most of the world's countries, and many rounds of negotiations were held over the years to further reduce these barriers. The GATT eventually evolved into the World Trade Organization (WTO) in 1995.

Question 5

Which country is the world's largest marketplace and most stable economy?

Accepted Answer

The United States is recognized as the world's largest marketplace due to its massive consumer base and high levels of consumer spending. It also has a reputation for having a stable economy, supported by its diverse economic sectors, strong legal frameworks, and the global dominance of the US dollar.

Question 6

The purpose of the General Agreement on Tariffs and Trade is to reduce trade barriers.

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement between countries aimed at reducing trade barriers, such as tariffs and quotas, and promoting free trade.

Question 7

The primary purpose of the World Trade Organization is to impose tariffs on imported products.

Accepted Answer

The primary purpose of the World Trade Organization is to promote free and fair trade by reducing barriers to international trade and resolving trade disputes between countries. It is not to impose tariffs on imported products, but rather to work towards the elimination of tariffs and other trade barriers.

Question 8

An import is a product made or grown abroad but sold domestically.

Accepted Answer

An import is indeed a product made or grown abroad but sold domestically.

Question 9

Which organization was developed to promote economic and cultural cooperation among Asian countries?

Accepted Answer

ASEAN, or the Association of Southeast Asian Nations, was developed to promote economic and cultural cooperation among Asian countries. The organization was established in 1967 and currently includes 10 member states. Its main objectives include promoting economic growth and stability, increasing trade and investment within the region, and enhancing regional cooperation on issues such as security and cultural exchange.

Question 10

Which of the following resulted from NAFTA?

Accepted Answer

NAFTA led to an increase in Mexican imports to the United States, as it allowed for a freer flow of goods between the two countries. This was a controversial aspect of the agreement, as some argued that it led to job losses in certain sectors of the U.S. economy. However, it is worth noting that NAFTA also led to job creation in other sectors and has had a complex impact on the North American economy.

Question 11

What caused manufacturing jobs to move from Mexico to China in the late 1990s?

Accepted Answer

In the late 1990s, manufacturing jobs moved from Mexico to China primarily due to increases in Mexico's cost of living and wages, making China a more cost-effective location for manufacturing.

Question 12

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

Accepted Answer

This statement is false. Globalization refers to the process by which countries around the world are becoming more interconnected and interdependent, often through increased trade, investment, and cultural exchange.

Question 13

What are products that are created domestically and transported for sale abroad?

Accepted Answer

Exports are products that are created domestically and transported for sale abroad.

Question 14

The World Trade Organization (WTO)was created to encourage international trade.

Accepted Answer

The creation of the World Trade Organization was to promote and encourage international trade by setting rules and regulations to govern trade between countries.

Question 15

What are products that are created abroad and then transported and sold domestically?

Accepted Answer

Imports are products that are created abroad and then transported into a country for sale domestically.

Question 16

What organization was founded in 1967 for economic,political,social,and cultural cooperation in the Asia Pacific region?

Accepted Answer

ASEAN (Association of Southeast Asian Nations) was founded in 1967 to promote economic, political, social, and cultural cooperation in the Asia Pacific region. SEATO (Southeast Asia Treaty Organization) was founded in 1954 as a mutual defense alliance and disbanded in 1977. CENTO (Central Treaty Organization) was established in 1955 for collective defense and dissolved in 1979. OAS (Organization of American States) was founded in 1948 for regional solidarity and cooperation in the Americas. WTO (World Trade Organization) was established in 1995 to oversee international trade and enforce trade agreements.

Question 17

Which organization created the classification of countries based on per capita income?

Accepted Answer

The World Bank created the classification of countries based on per capita income, which is commonly referred to as the World Bank income classifications. This classification system helps determine a country's level of economic development and eligibility for certain types of financial assistance.

Question 18

Which country in the Pacific Asia region has one of the world's largest economies?

Accepted Answer

China has the world's second-largest economy by nominal GDP and the largest by purchasing power parity (PPP).

Question 19

Where is the world's largest free marketplace?

Accepted Answer

The answer of Where is the world's largest free marketplace?
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Question 20

Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of its imports?

Accepted Answer

The term used for the economic value of all of the products that a country exports minus the economic value of its imports is known as the "Balance of Trade".

Quiz 4: Understanding the Global Context of Business