A country has a trade surplus when


Download 65.74 Kb.
bet2/2
Sana21.01.2023
Hajmi65.74 Kb.
#1107648
1   2
Bog'liq
World Economy Final


Partnership

  • Venture-Joint

    159. Computer manufacturing firm (US), invests in a microprocessor manufacturing plant in Taiwan.



    1. Foreign direct investment

    2. Insourcing

    3. Product differentiation

    4. Stock consolidation

    160. Advantage(s) of acquisitions



    1. Provides quick and efficient access to new markets

    2. Companies face new and unknown culture and traditions

    3. Cumbersome government regulations can slow a negotiation

    4. All answers are correct

    161. Reason(s) for forming joint ventures



    1. To share complementary skills and expertise

    2. To gain access to technology and new products

    3. To obtain local expertise

    4. All answers are correct

    162. Advantage(s) of a joint venture



    1. They use pre-existing distribution networks

    2. The firm reputation is tied to the partner’s reputation

    3. The local partner often hires local staff

    4. All answers are correct

    163. Purchase of physical assets or ownership of a company in another country to gain control is referred to as:



    1. International Trade

    2. Foreign Portfolio Investment

    3. International Business

    4. Foreign Direct Investment

    164. If BMW (a German car manufacturer) would purchase Firestone (a US tire manufacturer), this transaction is:



    1. International Trade

    2. Foreign Direct Investment

    3. International Joint Venture

    4. Unilateral Transfer

    165. Listed is the reason for FDI inflows in the U.S except:



    1. Frequent changes in economic policy

    2. Openness to FDI

    3. Wealthy domestic markets

    4. Large region

    166. Determine one of the reasons for firms to proceed with acquiring existing assets (acquisition):



    1. Quicker to execute than Greenfield investment

    2. Worthless strategic assets

    3. Inefficient

    4. All of the above

    167. McDonald’s could purchase a large-scale farm in Canada to produce meat for their restaurants



    1. Horizontal FDI

    2. Vertical FDI

    3. Conglomerate FDI

    4. Platform FDI

    168. Which of the following would be an example of FDI from the United States to Taiwan?



    1. U.S bank buys bonds issued by a Taiwan computer manufacturer

    2. Microsoft hires a Taiwanese programmer to debug its software

    3. U.S bank sells bonds issued by a Taiwan computer manufacturer

    4. Warren Buffet buys a controlling share in a Taiwanese firm

    169. Ford Motors purchased manufacturing plants in Ireland for exporting cars to other countries in the EU



    1. Horizontal FDI

    2. Vertical FDI

    3. Platform FDI

    4. Conglomerate FDI

    170. What is the connection between comparative advantage (CA) and FDI?



    1. Comparative advantage has nothing to do with FDI.

    2. Countries invest in industries where the country has comparative advantage

    3. A country’s firms invest abroad create comparative advantage

    4. Countries invest in countries with a comparative disadvantage

    171. Which of the following is a Foreign Direct Investment



    1. The long-term lease of land

    2. An investment under 10% into another nation

    3. The wiping off of debt of a nation

    4. Called an outward flow when FDI transfers enter a nation

    172. Foreign investment by the official sector is primarily in the form of:



    1. Borrowing

    2. Sale of government assets

    3. Direct Investment

    4. Equity Investment

    173. One major disadvantage of portfolio investment is that it can;



    1. Lead to a depreciation of the currency

    2. Result in a deficit on the financial account

    3. Reduce the level of direct investment

    4. Be speculative and destabilizing

    174. Which of the following is not a possible advantage of direct investment:



    1. New managerial skills

    2. New technology

    3. Increased employment opportunities

    4. Increased remittance of profits

    175. Virgin Group, which is based in the United Kingdom, acquired a clothing line in France



    1. Platform FDI

    2. Horizontal FDI

    3. Conglomerate FDI

    4. Vertical FDI

    176. Which international organization can help mediate a dispute related to International Trade between countries?



    1. World Trade Organization

    2. NAFTA

    3. International Monetary Fund

    4. World Trade Committee

    177. What is the underlying characteristic of the WTO?



    1. The promotion of free international trade

    2. It facilitates the development of less developed countries

    3. It resolves disputes between economic trade blocks

    4. It facilitates economic co-operation between different countries

    178. Theoretically, what is the most significant organ of the WTO?



    1. The General Council

    2. The Council for Trade in Goods

    3. The Ministerial Conference

    4. The Committee on Trade and Development

    179. Practically, what is the most significant organ of the WTO?



    1. The Committee on Trade and Development

    2. The Council for Trade in Goods

    3. The Ministerial Conference

    4. The General Council

    180. Where is provision made with regard to the WTO’s institutional arrangements?



    1. In the WTO Agreement

    2. In the GATT

    3. In the UN Charter

    4. In the WTO Agreement on Subsidies and Countervailing Measures

    181. With regard to the WTO, subsidies are covered in two separate international economic law agreements. Which are they?



    1. The Reform Treaty and the Treaty of Rome

    2. NAFTA and the Organization of American States Charter

    3. The IMF’s Articles of Agreement and the European Central Bank’s Statute

    4. The GATT and the Agreement on Subsidies and Countervailing Measures

    182. What does the World Trade Organization Do?



    1. They build skyscrapers

    2. They Trade Regularly

    3. Establish trading centers

    4. Regulates International Trade

    183. What year WTO was it formed?



    1. 1959

    2. 1995

    3. 1998

    4. 1945

    184. How many member states are involved in the WTO?



    1. 141

    2. 150

    3. 164

    4. 139

    185. How many observers are involved in the WTO?



    1. 25

    2. 20

    3. 30

    4. 15

    186.Which one of these is a way that WTO promotes trade?



    1. Raising Trade Barriers

    2. Lowering Trade Barriers

    3. Selling Trade Barriers on Ebay

    4. None of the Above

    187. Which one of these is a trade barrier?



    1. Weather

    2. Lack of Money

    3. A navy blockade

    4. Tariffs

    188. What does WTO stand for?



    1. World Trading Organization

    2. Why Trade Organization

    3. World Trade Organization

    4. World Trade Outsourcing

    189. From what did the WTO branch off of?



    1. GTA

    2. CAT

    3. GATT

    4. GATs

    190. Where are the WTO Headquarters?



    1. Geneva, Switzerland

    2. London, G.B.

    3. New York, U.S.

    4. Seattle, Washington.

    191. Function of the WTO?



    1. Set rules for global trading & resolve disputes

    2. Argue about what is allowed to trade

    3. Decides the quantities that countries are allowed to trade

    4. Decides which countries can trade and when

    192. Which one of this is NOT part of the WTO functions?



    1. Dispute settlements

    2. Implements and monitoring

    3. Impose trade tariffs

    4. Building trade capacity

    193. Which one of these is NOT part of the Doha Round?



    1. Subsidies

    2. Intellectual property

    3. Transparency

    4. Reduction of tariffs

    194. Which of the following is NOT a WTO principle?



    1. Non-discrimination

    2. Self-profitability

    3. Reciprocity

    4. Liberalization

    195. Before the GATT, what was the average tariffs?



    1. 33%

    2. 27%

    3. 40%

    4. 37%

    196.When the General Agreement on Tariffs and Trade signed? And how many nations involved in?"



    1. 1945 / 23 nations

    2. 1948 / 23 nations

    3. 1948 / 32 nations

    4. 1945 / 32 nations

    197. Which of these agreements facilitates trade in knowledge, creativity, innovation, technology and Intellectual Property"



    1. GATT

    2. GATS

    3. TRIPS

    4. WTO

    198. Which of these agreements creates a credible and reliable system of international services trade rules



    1. GATS

    2. TRIPS

    3. GAAT

    4. GATT

    199. What is the difference between WTO and GATT?



    1. The dispute settlement mechanism is more effective in WTO

    2. GATT only dealt with goods WTO covers services and intellectual property

    3. WTO agreements formally ratified by the Member states

    4. All the above

    200. Most complaints about the WTO are from?



    1. China

    2. Developed Countries

    3. U.S.

    4. Developing Countries

    201. What is the name of the current round of negotiations?



    1. Doha round

    2. Tokyo round

    3. Berlin round

    4. Uruguay round

    202. What is a major stimulus to world trade?



    1. Multinational companies

    2. The Internet

    3. Computers

    4. Foreign trade

    203. Removal of trade barriers so goods can freely flow between countries.



    1. Inter-Trade

    2. Commerce

    3. Tariff

    4. Free Trade

    204. The first international Agreement to promote free trade



    1. GATT

    2. NAFTA

    3. EU

    4. GAAT

    205. A country to provide - any privileges granted to one nation in a trade agreement - to all other WTO member countries



    1. Most-Favored-Nation

    2. Liberalization

    3. Non-discrimination

    4. Reciprocity

    206. How many countries are members of the European Union?



    1. 42

    2. 36

    3. 27

    4. 25

    207. In the years after World War II the world economy was dominated by which region or country?



    1. China

    2. Western Europe

    3. United States

    4. Russia

    208. A mother countries sells goods to colonies in exchange for raw materials.



    1. Mercantilism

    2. Capitalism

    3. Manorialism

    4. Communism

    209.Economic rivalry that exists among businesses selling products that are similar



    1. Competition

    2. Opportunity cost

    3. Absolute advantage

    4. Comparative advantage

    210. A limit on the exchange of goods from one country to another



    1. Competition

    2. Trade surplus

    3. Trade deficit

    4. Trade barrier

    211. Occurs when a country sells more than it buys



    1. Trade deficit

    2. Budget surplus

    3. Trade surplus

    4. Budget deficit

    212. The value of what a country gives up to specialize



    1. Absolute advantage

    2. Comparative advantage

    3. Balance of payments

    4. Opportunity cost

    213. When a nation can provide a product cheaper than its trading partner



    1. Absolute advantage

    2. Comparative advantage

    3. Absolute disadvantage

    4. Competitive advantage

    214. The record of a country's income and payments between consumers, businesses, and governments



    1. Balance of payments

    2. Reserve requirement

    3. Opportunity cost

    4. Tight money policy

    215. The method of determining which products or services to offer a nation the greater advantage



    1. Absolute advantage

    2. Absolute disadvantage

    3. Competitive advantage

    4. Comparative advantage

    216. Tariffs, import quotas, and embargoes are all examples of



    1. Trade barriers

    2. Interdependence

    3. Reciprocal trade agreements

    4. Opportunity costs

    217. If Mexico is able to grow grapes better than any other country, when it comes to growing grapes



    1. An import quota

    2. A comparative advantage

    3. An absolute advantage

    4. A trade barrier

    218. International trade is made possible by



    1. The Fed

    2. The United Nations

    3. Self-sufficient countries

    4. Specialization

    219. Countries may choose to employ a voluntary trade restrictions in order to



    1. Help domestic businesses

    2. Encourage global competition

    3. Raise revenue through tariffs

    4. Lower inflation rates

    220. a sovereign state that has a high quality of life, developed economy and advanced technological infrastructure relative to other less industrialized nations.



    1. Developed country

    2. Developing country

    3. Newly industrialized country

    4. Emerging market

    221. In which country the service sector provides more wealth than the industrial sector



    1. Developing country

    2. Least developed country

    3. Developed country

    4. Newly industrialized country

    222. Which of the following is a component of the Human Development Index (HDI) criteria



    1. Life expectancy at birth

    2. Average education level

    3. Standard of living

    4. All the above

    223. An empirical relationship helps to make sense of the value of trade between any pair of countries



    1. Supply and demand model

    2. The Keynesian model

    3. Gravity model

    4. Invisible hand model

    224. The exchange of goods and services between countries



    1. International trade

    2. Exports

    3. Imports

    4. Protectionism

    225. Goods produced domestically and sold abroad



    1. Exports

    2. Imports

    3. International trade

    4. Protectionism

    226. Goods produced abroad and sold domestically



    1. Exports

    2. Imports

    3. International trade

    4. Protectionism

    227. The difference between the amount produced and the amount traded.



    1. Consumption

    2. Production

    3. Export

    4. Import

    228. The ability to produce a good using fewer inputs than another producer



    1. Comparative advantage

    2. Competitive advantage

    3. Absolute Disadvantage

    4. Absolute advantage

    229. The ability to produce a good at a lower opportunity cost than another producer



    1. Absolute advantage

    2. Comparative advantage

    3. Competitive advantage

    4. Absolute Disadvantage

    230. A trade theory holding that a country’s wealth is measured by its holdings of “treasure”, which usually means its gold.



    1. Mercantilism

    2. Theory of Country Size

    3. Factor-Proportions Theory

    4. Product Life Cycle Theory

    231. A theory proposed that a country should try to achieve a favorable balance of trade to receive an influx of gold.



    1. Absolute advantage

    2. Theory of Country Size

    3. Mercantilism

    4. Product Life Cycle Theory

    232. Rulers encourages exports by putting limitations on imports. This approach is called …….



    1. Protectionism

    2. Interdependence

    3. Mercantilism

    4. Liberalization

    233. His theory points out that trade between countries can be profitable for all, even if one of the countries can produce every commodity more cheaply.



    1. Adam Smith

    2. David Ricardo

    3. Karl Marx

    4. John Maynard Keynes

    234. Countries produce and export goods that require resources in abundance, and import goods that require resources in short supply.



    1. Theory of Country Size

    2. Product Life Cycle Theory

    3. Competitive advantage theory

    4. Factor-Proportions Theory

    235. The country with the world's highest capital-per worker has a lower capital-labor ratio in exports than in imports.



    1. Leontief Paradox

    2. Factor-Proportions Theory

    3. Theory of Country Size

    4. Hecksher-Ohlin Theory

    236. According to the country-similarity theory, most trade today occurs among developed countries because they share similar market characteristics and because they produce and consume so much more than developing economies.



    1. Theory of Country Size

    2. Country Similarity Theory

    3. Product Life Cycle Theory

    4. Hecksher-Ohlin Theory

    237. A statement of all transactions made between entities in one country and the rest of the world over a defined period



    1. Balance of Payments

    2. Balance of Trade

    3. Balance Sheet

    4. Account Balance

    238. A trading account which records all the transactions made between one country and the rest of the world



    1. Financial Account

    2. Capital Account

    3. Balance of Payments

    4. Current Account

    239. One-sided transaction transfers characterized by a resident entity in one nation providing a non-resident entity with an economic value.



    1. Current Account

    2. Capital Account

    3. Current transfers

    4. Account Balance

    240. Records the net flow of investment transaction and the international undertakings of assets into an economy



    1. Capital Account

    2. Current transfers

    3. Current Account

    4. Balance of Trade

    241. Any one of the types in which wealth can be held



    1. Asset

    2. Bank account

    3. Money

    4. Gold

    242. Operated by a nation's central bank to buy and sell foreign currencies



    1. Reserve account

    2. Bank account

    3. Current Account

    4. Capital Account

    243. The difference between the value of a country's exports and the value of its imports



    1. Balance of Payments

    2. Balance of Trade

    3. Balance Sheet

    4. Account Balance

    244. An arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies.



    1. Balance of Trade

    2. Trade Liberalization

    3. Economic Integration

    4. Protectionism

    245. In a ……….., countries would offer tariff reductions, though perhaps not eliminations, to a set of partner countries in some product categories.



    1. Preferential Trade Agreement

    2. Free Trade Area

    3. Economic Union

    4. Common market

    246. A group of countries agrees to eliminate tariffs among themselves but maintain their own external tariff on imports from the rest of the world.



    1. Preferential Trade Agreement

    2. Single market

    3. Economic Union

    4. Free Trade Area

    247. McDonald’s opening restaurants in Japan would be considered a



    1. Horizontal FDI

    2. Vertical FDI

    3. Conglomerate FDI

    4. Platform FDI

    248. McDonald’s could purchase a large-scale farm in Canada to produce meat for their restaurants



    1. Vertical FDI

    2. Platform FDI

    3. Horizontal FDI

    4. Conglomerate FDI

    249. If Virgin Group, which is an entertainment company based in UK, acquired a clothing line in France



    1. Vertical FDI

    2. Horizontal FDI

    3. Conglomerate FDI

    4. Platform FDI

    250. If Ford purchased manufacturing plants in Ireland with the primary purpose of exporting cars to other countries in the EU



    1. Conglomerate FDI

    2. Platform FDI

    3. Vertical FDI

    4. Horizontal FDI

    251. A type of foreign direct investment (FDI) in which a parent company creates a subsidiary in a different country, building its operations from the ground up



    1. Green-field FDI

    2. Brownfield FDI

    3. Platform FDI

    4. Vertical FDI

    252. A type of foreign direct investment (FDI) where a company invests in an existing facility to start its operations in the foreign country



    1. Brownfield FDI

    2. Green-field FDI

    3. Vertical FDI

    4. Platform FDI

    253. Commercial enterprise in which two or more organizations combine their resources to gain a tactical and strategic edge in the market



    1. Green-field FDI

    2. Platform FDI

    3. Conglomerate FDI

    4. Joint Venture

    254. An investment into a foreign firm is considered an FDI if an investor obtains at least ….. of the voting power in a firm.



    1. 50%

    2. 10%

    3. 20%

    4. 51%

    255. An example of monetary union



    1. EU

    2. NAFTA

    3. EUROZONE

    4. ASEAN

    256. How many country members of the EU use the EURO as their currency?



    1. 19

    2. 20

    3. 18

    4. 21

    Download 65.74 Kb.

    Do'stlaringiz bilan baham:
  • 1   2




    Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
    ma'muriyatiga murojaat qiling