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Global Trade & Business Law Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Your company has to pay a fee for the domestic company due to the fact that they supply you with certain specific products and that you are using their recipe. Which of the choices describes this fee?

Question 2 2. Which of the following BEST defines export?

Question 3 3. Identify which of the following is the most likely reason for a country being awarded the Most Favored Nation (MFN) status:

Question 4 4. Why is the World Trade Organization relevant to the global economic system?

Question 5 5. Why is a tariff imposed?

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Question 6 6. What is an exchange rate?

Question 7 7. What is the BEST explanation of a global market?

Question 8 8. Which of the following organizations governs U.S. exports?

Question 9 9. A company believes the best approach to introduce their product to a foreign market would be a high-risk approach where they would become active owners and build new factories there. What is an advantage commonly associated with such an approach?

Question 10 10. Which of the following is NOT a way for a country to be successful at international trade?

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Question 11 11. Which of the following is an example of a trade deficit?

Question 12 12. What kind of protection is offered by Foreign Sovereign Immunity?

Question 13 13. Why do climate and geography affect the global marketplace?

Question 14 14. While on official business in the U.S., the president of Mexico's motorcade caused an automobile accident, injuring Larry. Larry sues the Mexican government in a U.S. court. Larry alleges negligence and seeks to recover money damages. Will Larry be allowed to move forward with his lawsuit?

Question 15 15. When the United States and Canada can import and export products across its border with no restrictions, it is called _____.

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Question 16 16. Which of the following situations is specifically listed in Article II of the U.S. Constitution?

Question 17 17. What is a tariff?

Question 18 18. A country can produce 10 bushels of wheat but will have to give up producing 15 bushels of corn. Assume that the value of a bushel of wheat equals the value of a bushel of corn. What is the opportunity cost for producing 100 bushels of wheat? Should the country produce wheat or corn?

Question 19 19. Why are subsidies used?

Question 20 20. How do tariffs make domestic goods more competitive?

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Question 21 21. If 35 Euros buys 70 US dollars, what is the exchange rate from dollars to Euros?

Question 22 22. When a nation with low labor costs and few government restrictions on business enacts open trade agreements, which of these will likely happen?

Question 23 23. Why are joint ventures usually formed?

Question 24 24. Which of the following concepts was developed by Adam Smith?

Question 25 25. Why is the Customs Border Patrol relevant to a company that wants to export to the U.S.?

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Question 26 26. A company that contracts with a foreign company to perform its manufacturing activities is engaged in what type of activity?

Question 27 27. Which of the following is an example of importing?

Question 28 28. How are quotas different from tariffs?

Question 29 29. Why would a country wish to pursue open trade policies?

Question 30 30. Historically, international law principles dictated that nations were immune from the court jurisdiction of other nations. This type of immunity is known as _____.

Global Trade & Business Law Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Business 308: Globalization & International Management  /  Business Courses
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