Question 1

The world marketplace is shrinking and changing. One of the vehicles that has been instrumental in this change is the General Agreement on Tariffs and Trade (GATT). Explain what GATT is and how it has affected international business.

Accepted Answer

The answer of The world marketplace is shrinking and changing....

Question 2

The U.S. government defines the multinational corporation for statistical purposes as
a company that owns or controls 60 percent or more of the voting securities, or the
equivalent of at least one foreign business enterprise.

Accepted Answer

The U.S. government defines a multinational corporation as a company that owns or controls 10 percent or more of the voting securities, or the equivalent, of at least one foreign business enterprise.

Question 3

Any start-up firm becoming global at its first inception is called as 'born again firm'.

Accepted Answer

A born again firm refers to a firm that failed in its initial attempt and is now starting over, whereas a start-up firm that becomes global at its first inception is simply called a global start-up.

Question 4

A monetary union represents the fourth level of integration with a single common
currency among politically independent countries.

Accepted Answer

A monetary union involves the adoption of a single common currency by politically independent countries, which represents the fourth and highest level of economic integration.

Question 5

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

Accepted Answer

The 1993 Maastricht Treaty amended the Treaty of Rome, not the Treaty of Brussels. The Treaty of Brussels was signed in 1948 and established the Western European Union.

Question 6

A free trade area (FTA) is a formal agreement among two or more countries to
reduce or eliminate customs duties and nontariff trade barriers among partner
countries.

Accepted Answer

A free trade area is indeed a formal agreement among two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries.

Question 7

Currently, Britain and France remain the principal opponents of ceding any part of the
sovereignty of the nation-state to any future political union in Europe.

Accepted Answer

The statement correctly states that Britain and France are opponents of ceding sovereignty to a future political union in Europe.

Question 8

To improve on GATT the WTO was established. Explain what the WTO is, how it is different from GATT, and what specific functions the WTO is expected to perform.

Accepted Answer

The answer of To improve on GATT the WTO was...

Question 9

FTAA stands for Free Trade Area of the Americas.

Accepted Answer

FTAA refers to Free Trade Area of the Americas.

Question 10

One consequence of fungible content, information products, and electronic networks
is an additional assault on the power of national governments to regulate international
commerce.

Accepted Answer

Fungible content, information products, and electronic networks allow for borderless transactions and can make it difficult for national governments to regulate or control international commerce. This can weaken the power and influence of governments in this area.

Question 11

Some of the greatest challenges in trade in the next century will come in the areas of information technology and intellectual property. Describe these challenges, the mechanisms that are in place to protect one's intellectual property, and how trade in general will be affected.

Accepted Answer

The answer of Some of the greatest challenges in trade...

Question 12

A common market eliminates all tariffs and other barriers to trade among members of
the common market.

Accepted Answer

This statement is true. A common market is a type of trade agreement where countries remove all restrictions on trade (including tariffs, quotas, and other trade barriers) between themselves and also adopt a common external trade policy towards non-members. This creates a larger market for goods and services, as well as greater opportunities for investment and job creation. The European Union is a prime example of a common market.

Question 13

A common market and a monetary union are basically the same thing.

Accepted Answer

A common market allows for the free movement of goods, services, and people between member states, while a monetary union involves a single currency and coordinated monetary policy among its members. The two concepts are related, but they are not identical.

Question 14

NAFTA is the free trade area among Canada, the United States, and Chile.

Accepted Answer

The statement is incorrect. NAFTA (North American Free Trade Agreement) is the free trade area among Canada, the United States, and Mexico. Chile is not part of NAFTA.

Question 15

In the U.S., the Federal Trade Commission (FTC) is in charge of cases where entities
are trying to mislead the public and commit fraud.

Accepted Answer

The FTC is indeed responsible for cases where entities are engaging in deceptive practices and committing fraud against the public.

Question 16

Regulating international e-commerce does not require cross-border cooperation.

Accepted Answer

Regulating international e-commerce does require cross-border cooperation as it involves multiple jurisdictions and legal frameworks. It is important to establish international standards and policies to ensure fair competition, protect consumers' rights, and prevent fraudulent activities.

Question 17

It has been suggested that cooperative inter-relationships between countries (regional groupings) can be classified into five broad categories. Briefly summarize and describe each of these categories and indicate differences that may be present.

Accepted Answer

The answer of It has been suggested that cooperative inter-relationships...

Question 18

Regarding regional integration, South American markets are still less open than those
of East Asia.

Accepted Answer

Studies have shown that South American markets are still less open than those of East Asia in terms of trade, investment, and migration. The region has made significant progress in recent years with the creation of regional organizations such as the Union of South American Nations (UNASUR) and the Pacific Alliance, but there is still room for improvement in terms of economic integration.

Quiz 2: Economic Environment

The world marketplace is shrinking and changing. One of the vehicles that has been instrumental in this change is the General Agreement on Tariffs and Trade (GATT). Explain what GATT is and how it has affected international business.

The U.S. government defines the multinational corporation for statistical purposes as a company that owns or controls 60 percent or more of the voting securities, or the equivalent of at least one foreign business enterprise.

Any start-up firm becoming global at its first inception is called as 'born again firm'.

A monetary union represents the fourth level of integration with a single common currency among politically independent countries.

The 1993's Maastricht Treaty succeeded the Treaty of Brussels.

A free trade area (FTA) is a formal agreement among two or more countries to reduce or eliminate customs duties and nontariff trade barriers among partner countries.

Currently, Britain and France remain the principal opponents of ceding any part of the sovereignty of the nation-state to any future political union in Europe.

To improve on GATT the WTO was established. Explain what the WTO is, how it is different from GATT, and what specific functions the WTO is expected to perform.

FTAA stands for Free Trade Area of the Americas.

One consequence of fungible content, information products, and electronic networks is an additional assault on the power of national governments to regulate international commerce.

Some of the greatest challenges in trade in the next century will come in the areas of information technology and intellectual property. Describe these challenges, the mechanisms that are in place to protect one's intellectual property, and how trade in general will be affected.

A common market eliminates all tariffs and other barriers to trade among members of the common market.

A common market and a monetary union are basically the same thing.

NAFTA is the free trade area among Canada, the United States, and Chile.

In the U.S., the Federal Trade Commission (FTC) is in charge of cases where entities are trying to mislead the public and commit fraud.

Regulating international e-commerce does not require cross-border cooperation.

It has been suggested that cooperative inter-relationships between countries (regional groupings) can be classified into five broad categories. Briefly summarize and describe each of these categories and indicate differences that may be present.

Regarding regional integration, South American markets are still less open than those of East Asia.