Question 1

In 1764, the British Sugar and Currency Acts created such economic difficulty in the American colonies that soon-to-be Americans refused to buy British goods in protest. What did this refusal mark one of the first examples of?

Accepted Answer

The refusal to buy British goods in protest marked one of the first examples of a boycott, which is an organized effort to withhold purchasing or using a product or service as a form of protest or economic pressure.

Question 2

Which of the following is a law that compels a company earning foreign currency from its exports to sell it to a central bank rather than sending the money out of the country?

Accepted Answer

This is an example of exchange control, which restricts the outflow or inflow of foreign currency from a country. The company is required to sell its foreign currency to the central bank, which can control its use within the country. Tariffs and quotas are trade policies that are used to restrict imports or exports, while a fiscal prerequisite is not a commonly used term in this context.

Question 3

The Group of Twenty was brought together in 1999 to accomplish what task?

Accepted Answer

The Group of Twenty (G20) was established in 1999 to bring together the major industrialized and developing economies to discuss international economic and financial issues. It includes 19 individual countries and the European Union.

Question 4

Which country is the largest importer to Canada?

Accepted Answer

The United States is Canada's largest trading partner, with imports from the U.S. accounting for approximately 60% of all Canadian imports. This includes a wide range of goods, such as machinery, vehicles, and agricultural products.

Question 5

What do NAFTA and the EU have in common?

Accepted Answer

Both NAFTA (North American Free Trade Agreement) and the EU (European Union) are market groupings that facilitate trade among member countries by reducing or eliminating trade barriers.

Question 6

What do we call negotiations (such as NAFTA) between countries that are made to stimulate global exchange and remove barriers?

Accepted Answer

Trade agreements are negotiations made between countries to stimulate global exchange and remove barriers. NAFTA (North American Free Trade Agreement) is an example of such an agreement, as it was made to promote trade and investment between the United States, Canada, and Mexico. Trade agreements can also include provisions for the protection of intellectual property rights, labor standards, and environmental regulations.

Question 7

Which of the following statements best describes the European Union (EU)?

Accepted Answer

The EU was created to remove internal trade barriers and create a single market for goods and services. It also standardizes regulations across European countries for easier trade. While not all Europeans shop alike, the purpose of the EU is to make trade easier across all member countries. The EU is made up of 27 member countries of varying sizes and economic power, and decisions are made through a combination of voting and consensus-building among all member states, rather than being dominated by a few major countries. Therefore, options A, C, and D are not correct.

Question 8

As of 2016, how many members does the EU have?

Accepted Answer

As of 2016, the European Union has 28 member states.

Question 9

What historic agreement did Prime Minister Justin Trudeau sign in 2016?

Accepted Answer

Prime Minister Justin Trudeau signed the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union in 2016. This agreement aims to eliminate tariffs on 98% of products traded between Canada and the EU, and increase investment and job opportunities for both sides.

Question 10

Which of the following is NOT created by vast differences in natural resources?

Accepted Answer

Vast differences in natural resources can lead to potential for military intervention, shifts in wealth between nations, and can influence economic factors like inflation and recession due to changes in resource availability and prices. However, they do not create export opportunities for countries with no natural resources; those opportunities depend on other factors such as innovation, services, or manufactured goods.

Question 11

Which of the following has NOT been a result of petroleum shortages?

Accepted Answer

The inability of oil-producing nations to service foreign debts typically occurs when oil prices are low, not when they go up. Higher oil prices generally increase the revenue for oil-producing countries, making it easier for them to service their debts.

Question 12

Marlin manufactures washing machines. It is designing advertisements and planning the promotional mix for marketing in Eastern Europe, South Africa, India, and Brazil. Which of the following should the advertising manager NOT expect to cause problems?

Accepted Answer

Exchange control, which refers to regulations on the exchange of foreign currencies, is not directly related to advertising or the promotional mix. It primarily affects financial transactions and the transfer of money across borders, not the content or distribution of advertisements.

Question 13

What has caused East Asia's economic miracle?

Accepted Answer

The answer of What has caused East Asia's economic miracle?
...

Question 14

Which method of entering the global marketplace would be least risky?

Accepted Answer

Exporting involves selling products or services to customers in another country without investing in local operations. It is considered the least risky method of entering the global marketplace because it requires minimal investment and allows for testing of new markets without committing extensive resources. Additionally, exporting enables companies to leverage on their existing production capabilities and distribution channels.

Question 15

US wine producers export only about 14 percent of their total annual production of wine. What does this statement indicate about the US wine industry?

Accepted Answer

This statement suggests that the US wine industry is in the early stages of expanding its market reach globally, as a relatively small proportion of its production is exported.

Question 16

What is the primary goal of the EU?

Accepted Answer

The primary goal of the EU is to establish a unified European market, where goods, services, people, and capital can move freely across member countries' borders. The EU aims to create an economic, political, and social union among its member countries to promote peace, stability, and prosperity in the region. While the EU may have other goals, such as promoting human rights, environmental protection, and research and development, establishing a single market remains its primary objective.

Question 17

Shark fin soup is illegal in Canada. Furthermore any products that come from shark finning are also illegal. This means that these products are not allowed in Canada. What has the Canadian government imposed?

Accepted Answer

The Canadian government has imposed a boycott on shark fin soup and any products that come from shark finning, making them illegal in the country.

Question 18

A multinational company that makes a labour-intensive product realizes that factors such as median age, gender, and literacy rates will determine the success of its global expansion. What is the term that identifies the makeup of countries?

Accepted Answer

Demographics refer to the study of population characteristics, including age, gender, education level, income, and more, which are essential factors for a multinational company to consider when expanding globally. Demographics help companies understand the makeup of different countries and their potential markets. The other options, lifestyle, ethnicity, and culture, may also be important but are not as directly related to determining the demographics of a country.

Question 19

What is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, and Uruguay and has eliminated the tariffs among these trading partners?

Accepted Answer

Mercosur (also known as the Southern Common Market) is a trade agreement that includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay. This agreement has eliminated the tariffs among these trading partners. NAFTA (North American Free Trade Agreement) includes the United States, Canada, and Mexico. Maastricht is a treaty that established the European Union. GATT (General Agreement on Tariffs and Trade) was a precursor to the World Trade Organization and involved multiple countries, not just those in South America.

Question 20

Zambia is internationally recognized as the world's second leading producer of cobalt, which is used to make high-speed and high-temperature cutting tools and dyes. A company that wanted to manufacture tools for shaping steel would be most attracted to which element of the Zambian environment?

Accepted Answer

The company would be most attracted to the natural resources of Zambia, specifically cobalt, which is used to make high-speed and high-temperature cutting tools and dyes.

Quiz 4: Developing a Global Vision