Question 1

In 2007 this country ranked second behind the United States in the ranking of the world's largest corporations.
A) Netherlands
B) Japan
C) France
D) Germany
E) South Korea

Accepted Answer

The answer of In 2007 this country ranked second behind...

Question 2

The United States has many successful trade relationships. Four of these relationships account for a tremendous volume of trade. All of the following countries are among the top trade partners for the U.S. EXCEPT:
A) Canada
B) Mexico
C) Japan
D) India
E) China

Accepted Answer

Canada, Mexico, Japan, and China are all among the top trade partners for the U.S. However, India is not among the top trade partners for the U.S.

Question 3

The GATT panels formed to resolve bilateral trade disputes are only advisory and have no enforcement powers.

Accepted Answer

GATT member nations seek to resolve their trade disputes bilaterally; if that fails, special GATT panels are set up to recommend action. The panels are only advisory and have no enforcement powers.

Question 4

The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of the following is NOT one of those five countries?
A) Brazil
B) China
C) India
D) Indonesia
E) Rhodesia

Accepted Answer

The World Bank estimates that five countries- Brazil, China, 8 India, Indonesia, and Russia-whose share of world trade is barely one third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union.

Question 5

What was the reciprocal impact of the foreign economic assistance given by the United States?
A) European countries supplied funds for U.S. welfare programs.
B) Immigration to the U.S. from the recipient countries was reduced owing to increased economic activity at home.
C) All recipient countries appointed Americans to manage their central banks.
D) Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased.
E) The NAFTA was formed on this platform.

Accepted Answer

For every dollar the United States invested in the economic development and rebuilding of other countries after World War II, hundreds of dollars more returned in the form of purchases of U.S. agricultural products, manufactured goods, and services.

Question 6

After 1888, the United States had unparalleled growth and a favorable balance of trade until ___. After this date, the United States has a negative balance of trade.
A) 1950
B) 1963
C) 1968
D) 1971
E) 1985

Accepted Answer

Between 1888 and 1971, the United States sold more to other countries than it bought from them; that is, the United States had a favorable balance of trade. By 1971, however, the United States had a trade deficit of $2 billion that grew steadily until it peaked at $160 billion in 1987.

Question 7

With respect to the nationality of the world's 100 largest industrial corporations, the United States is home to the largest number of the top 100 firms. Which of the following countries is home to the second largest number of these firms?
A) Germany
B) United Kingdom
C) France
D) Netherlands
E) Japan

Accepted Answer

The answer of With respect to the nationality of the...

Question 8

The World Bank was formed to overcome inadequate monetary reserves and unstable currencies which were particularly vexing problems in global trade.

Accepted Answer

The International Monetary Fund (IMF) was formed to overcome inadequate monetary reserves and unstable currencies which were particularly vexing problems in global trade.

Question 9

Obtaining export licenses for products on the export control list is more arduous than for those items that are exempt from the list.

Accepted Answer

Export controls, the Foreign Corrupt Practices Act (FCPA), and export promotion were specifically addressed in the export expansion section of the Omnibus Trade and Competitiveness Act. Export licenses could be obtained more easily and more quickly for products on the export control list.

Question 10

Which of the following, in addition to U.S. economic assistance, was a significant move toward international cooperation among trading nations?
A) Forming of the United Nations Development Programme
B) Signing of the Treaty on Open Skies
C) Establishment of the World Federation of Trade Unions
D) Negotiation of the General Agreement on Tariffs and Trade
E) Signing of the Montreal Protocol

Accepted Answer

In addition to U.S. economic assistance, a move toward international cooperation among trading nations was manifest in the negotiation (1986-1994) of the General Agreement on Tariffs and Trade (GATT).

Question 11

In the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as ___.
A) greenfield countries
B) growth economies
C) tier-II countries
D) developing countries
E) newly industrialized countries

Accepted Answer

In the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as newly industrialized countries (NICs). Various NICs such as Brazil, Mexico, South Korea, Taiwan, Singapore, and Hong Kong experienced rapid industrialization.

Question 12

Which of the following is the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction?
A) Third World countries were excluded from this economic growth, thus leading to stark imbalances in wealth.
B) The European Union became the center of world trade, taking the position away from the U.S.
C) Japan became the dominant player in the world market, beating American and European multinationals.
D) Economic power and potential became more evenly distributed among countries.
E) Americans were able to reiterate their dominance in world trade through direct investment and growing exports.

Accepted Answer

As a result of the expansionary trade measures led by the United States, economic power and potential became more evenly distributed among countries than was the case when Servan-Schreiber warned Europe about U.S. multinational domination.

Question 13

After World War II, the United States led efforts like the Marshall Plan to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled to foster economic growth in the underdeveloped world, while helping to create a world economy were aimed toward:
A) halting the growth of Nazi Germany.
B) dampening the spread of communism.
C) dissolving the colonial powers.
D) gaining access to the European market.
E) a worldwide trade bloc to counter the OPEC countries' clout.

Accepted Answer

After World War II, as a means to dampen the spread of communism, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible.

Question 14

Which of the following acronyms refer to the international forum for member countries to negotiate a reduction of tariffs and other barriers to trade?
A) WTO
B) GATT
C) OECD
D) OPEC
E) UNDP

Accepted Answer

Determined not to repeat the economic disaster that followed World War I, world leaders created GATT, a forum for member countries to negotiate a reduction of tariffs and other barriers to trade.

Question 15

The decisions of the World Trade Organization in trade dispute among members are binding decisions.

Accepted Answer

The World Trade Organization sets many rules governing trade among its 148 members, provides a panel of experts to hear and rule on trade disputes among members, and, unlike GATT, issues binding decisions.

Question 16

After World War II, United States set out to infuse the ideal of capitalism throughout as much of the world as possible through efforts like the _____ which was aimed at assisting in rebuilding Europe.
A) Eisenhower Plan
B) Marshall Plan
C) Bradley Plan
D) Roosevelt Plan
E) Truman Plan

Accepted Answer

The Marshall Plan to assist in rebuilding Europe, financial and industrial development assistance to rebuild Japan, and funds channeled through the Agency for International Development and other groups designed to foster economic growth in the underdeveloped world were used to help create a strong world economy.

Question 17

What was the outcome for GATT, after the ratification of the Uruguay Round agreements?
A) It came into effect retrospectively, leading to huge payment deficits for member nations.
B) It became part of the World Trade Organization.
C) It triggered formation of competitive treaties from Asian nations.
D) The European Union decided to stay away from the treaty.
E) The original purpose was sidelined in favor of political and military intervention between member states.

Accepted Answer

With the ratification of the Uruguay Round agreements, the GATT became part of the World Trade Organization (WTO) in 1995, and its 117 original members moved into a new era of free trade.

Question 18

Which of the following factors was responsible for the excess production capacity in the U.S. in the first half of the twentieth century?
A) Technological innovation revolutionized production during this time.
B) Many firms from other nations shifted their production facilities to the U.S.
C) Domestic demand was at a historic low, which produced excess capacity.
D) Swelling labor supply of returning military after World War II.
E) Influx of migrant laborers from Europe and Japan.

Accepted Answer

The overseas demand created by the Marshall Plan and other programs was important to the U.S. economy because the vast manufacturing base built to supply World War II and the swelling labor supply of returning military created a production capacity well beyond domestic needs.

Question 19

The issue of the openness of markets for U.S. goods is addressed as market expansion section of the Omnibus Trade and Competitiveness Act of 1988.

Accepted Answer

The issue of the openness of markets for U.S. goods is addressed as market access section of the Omnibus Trade and Competitiveness Act of 1988.

Question 20

According to the text, which were the two major challenges U.S. multinational corporations were facing at the close of the 1960s?
A) The rise of socialism/communism in the (former) Soviet Union and the higher tariffs on imports
B) Growing jingoistic nationalism and a negative population growth rate in major international markets
C) Resistance to direct investment and increasing competition in export markets
D) Increasing Chinese domination in the manufacturing sector and the falling dollar in global markets
E) Political intervention in free trade movement and growing influence of consumer rights advocacy in the home market

Accepted Answer

At the close of the 1960s, U.S. multinational corporations (MNCs) were facing major challenges on two fronts: resistance to direct investment and increasing competition in export markets.

Quiz 2: The Dynamic Environment of International Trade

In 2007 this country ranked second behind the United States in the ranking of the world's largest corporations.

The United States has many successful trade relationships. Four of these relationships account for a tremendous volume of trade. All of the following countries are among the top trade partners for the U.S. EXCEPT:

The GATT panels formed to resolve bilateral trade disputes are only advisory and have no enforcement powers.

The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of the following is NOT one of those five countries?

What was the reciprocal impact of the foreign economic assistance given by the United States?

After 1888, the United States had unparalleled growth and a favorable balance of trade until ___. After this date, the United States has a negative balance of trade.

With respect to the nationality of the world's 100 largest industrial corporations, the United States is home to the largest number of the top 100 firms. Which of the following countries is home to the second largest number of these firms?

The World Bank was formed to overcome inadequate monetary reserves and unstable currencies which were particularly vexing problems in global trade.

Obtaining export licenses for products on the export control list is more arduous than for those items that are exempt from the list.

Which of the following, in addition to U.S. economic assistance, was a significant move toward international cooperation among trading nations?

In the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as ___.

Which of the following is the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber's prediction?

Which of the following acronyms refer to the international forum for member countries to negotiate a reduction of tariffs and other barriers to trade?

The decisions of the World Trade Organization in trade dispute among members are binding decisions.

After World War II, United States set out to infuse the ideal of capitalism throughout as much of the world as possible through efforts like the _____ which was aimed at assisting in rebuilding Europe.

What was the outcome for GATT, after the ratification of the Uruguay Round agreements?

Which of the following factors was responsible for the excess production capacity in the U.S. in the first half of the twentieth century?

The issue of the openness of markets for U.S. goods is addressed as market expansion section of the Omnibus Trade and Competitiveness Act of 1988.

According to the text, which were the two major challenges U.S. multinational corporations were facing at the close of the 1960s?