A country has a trade surplus when
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World Economy Final
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Partnership Venture-Joint 159. Computer manufacturing firm (US), invests in a microprocessor manufacturing plant in Taiwan. Foreign direct investment Insourcing Product differentiation Stock consolidation 160. Advantage(s) of acquisitions Provides quick and efficient access to new markets Companies face new and unknown culture and traditions Cumbersome government regulations can slow a negotiation All answers are correct 161. Reason(s) for forming joint ventures To share complementary skills and expertise To gain access to technology and new products To obtain local expertise All answers are correct 162. Advantage(s) of a joint venture They use pre-existing distribution networks The firm reputation is tied to the partner’s reputation The local partner often hires local staff All answers are correct 163. Purchase of physical assets or ownership of a company in another country to gain control is referred to as: International Trade Foreign Portfolio Investment International Business Foreign Direct Investment 164. If BMW (a German car manufacturer) would purchase Firestone (a US tire manufacturer), this transaction is: International Trade Foreign Direct Investment International Joint Venture Unilateral Transfer 165. Listed is the reason for FDI inflows in the U.S except: Frequent changes in economic policy Openness to FDI Wealthy domestic markets Large region 166. Determine one of the reasons for firms to proceed with acquiring existing assets (acquisition): Quicker to execute than Greenfield investment Worthless strategic assets Inefficient All of the above 167. McDonald’s could purchase a large-scale farm in Canada to produce meat for their restaurants Horizontal FDI Vertical FDI Conglomerate FDI Platform FDI 168. Which of the following would be an example of FDI from the United States to Taiwan? U.S bank buys bonds issued by a Taiwan computer manufacturer Microsoft hires a Taiwanese programmer to debug its software U.S bank sells bonds issued by a Taiwan computer manufacturer 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 Horizontal FDI Vertical FDI Platform FDI Conglomerate FDI 170. What is the connection between comparative advantage (CA) and FDI? Comparative advantage has nothing to do with FDI. Countries invest in industries where the country has comparative advantage A country’s firms invest abroad create comparative advantage Countries invest in countries with a comparative disadvantage 171. Which of the following is a Foreign Direct Investment The long-term lease of land An investment under 10% into another nation The wiping off of debt of a nation Called an outward flow when FDI transfers enter a nation 172. Foreign investment by the official sector is primarily in the form of: Borrowing Sale of government assets Direct Investment Equity Investment 173. One major disadvantage of portfolio investment is that it can; Lead to a depreciation of the currency Result in a deficit on the financial account Reduce the level of direct investment Be speculative and destabilizing 174. Which of the following is not a possible advantage of direct investment: New managerial skills New technology Increased employment opportunities Increased remittance of profits 175. Virgin Group, which is based in the United Kingdom, acquired a clothing line in France Platform FDI Horizontal FDI Conglomerate FDI Vertical FDI 176. Which international organization can help mediate a dispute related to International Trade between countries? World Trade Organization NAFTA International Monetary Fund World Trade Committee 177. What is the underlying characteristic of the WTO? The promotion of free international trade It facilitates the development of less developed countries It resolves disputes between economic trade blocks It facilitates economic co-operation between different countries 178. Theoretically, what is the most significant organ of the WTO? The General Council The Council for Trade in Goods The Ministerial Conference The Committee on Trade and Development 179. Practically, what is the most significant organ of the WTO? The Committee on Trade and Development The Council for Trade in Goods The Ministerial Conference The General Council 180. Where is provision made with regard to the WTO’s institutional arrangements? In the WTO Agreement In the GATT In the UN Charter 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? The Reform Treaty and the Treaty of Rome NAFTA and the Organization of American States Charter The IMF’s Articles of Agreement and the European Central Bank’s Statute The GATT and the Agreement on Subsidies and Countervailing Measures 182. What does the World Trade Organization Do? They build skyscrapers They Trade Regularly Establish trading centers Regulates International Trade 183. What year WTO was it formed? 1959 1995 1998 1945 184. How many member states are involved in the WTO? 141 150 164 139 185. How many observers are involved in the WTO? 25 20 30 15 186.Which one of these is a way that WTO promotes trade? Raising Trade Barriers Lowering Trade Barriers Selling Trade Barriers on Ebay None of the Above 187. Which one of these is a trade barrier? Weather Lack of Money A navy blockade Tariffs 188. What does WTO stand for? World Trading Organization Why Trade Organization World Trade Organization World Trade Outsourcing 189. From what did the WTO branch off of? GTA CAT GATT GATs 190. Where are the WTO Headquarters? Geneva, Switzerland London, G.B. New York, U.S. Seattle, Washington. 191. Function of the WTO? Set rules for global trading & resolve disputes Argue about what is allowed to trade Decides the quantities that countries are allowed to trade Decides which countries can trade and when 192. Which one of this is NOT part of the WTO functions? Dispute settlements Implements and monitoring Impose trade tariffs Building trade capacity 193. Which one of these is NOT part of the Doha Round? Subsidies Intellectual property Transparency Reduction of tariffs 194. Which of the following is NOT a WTO principle? Non-discrimination Self-profitability Reciprocity Liberalization 195. Before the GATT, what was the average tariffs? 33% 27% 40% 37% 196.When the General Agreement on Tariffs and Trade signed? And how many nations involved in?" 1945 / 23 nations 1948 / 23 nations 1948 / 32 nations 1945 / 32 nations 197. Which of these agreements facilitates trade in knowledge, creativity, innovation, technology and Intellectual Property" GATT GATS TRIPS WTO 198. Which of these agreements creates a credible and reliable system of international services trade rules GATS TRIPS GAAT GATT 199. What is the difference between WTO and GATT? The dispute settlement mechanism is more effective in WTO GATT only dealt with goods WTO covers services and intellectual property WTO agreements formally ratified by the Member states All the above 200. Most complaints about the WTO are from? China Developed Countries U.S. Developing Countries 201. What is the name of the current round of negotiations? Doha round Tokyo round Berlin round Uruguay round 202. What is a major stimulus to world trade? Multinational companies The Internet Computers Foreign trade 203. Removal of trade barriers so goods can freely flow between countries. Inter-Trade Commerce Tariff Free Trade 204. The first international Agreement to promote free trade GATT NAFTA EU GAAT 205. A country to provide - any privileges granted to one nation in a trade agreement - to all other WTO member countries Most-Favored-Nation Liberalization Non-discrimination Reciprocity 206. How many countries are members of the European Union? 42 36 27 25 207. In the years after World War II the world economy was dominated by which region or country? China Western Europe United States Russia 208. A mother countries sells goods to colonies in exchange for raw materials. Mercantilism Capitalism Manorialism Communism 209.Economic rivalry that exists among businesses selling products that are similar Competition Opportunity cost Absolute advantage Comparative advantage 210. A limit on the exchange of goods from one country to another Competition Trade surplus Trade deficit Trade barrier 211. Occurs when a country sells more than it buys Trade deficit Budget surplus Trade surplus Budget deficit 212. The value of what a country gives up to specialize Absolute advantage Comparative advantage Balance of payments Opportunity cost 213. When a nation can provide a product cheaper than its trading partner Absolute advantage Comparative advantage Absolute disadvantage Competitive advantage 214. The record of a country's income and payments between consumers, businesses, and governments Balance of payments Reserve requirement Opportunity cost Tight money policy 215. The method of determining which products or services to offer a nation the greater advantage Absolute advantage Absolute disadvantage Competitive advantage Comparative advantage 216. Tariffs, import quotas, and embargoes are all examples of Trade barriers Interdependence Reciprocal trade agreements Opportunity costs 217. If Mexico is able to grow grapes better than any other country, when it comes to growing grapes An import quota A comparative advantage An absolute advantage A trade barrier 218. International trade is made possible by The Fed The United Nations Self-sufficient countries Specialization 219. Countries may choose to employ a voluntary trade restrictions in order to Help domestic businesses Encourage global competition Raise revenue through tariffs 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. Developed country Developing country Newly industrialized country Emerging market 221. In which country the service sector provides more wealth than the industrial sector Developing country Least developed country Developed country Newly industrialized country 222. Which of the following is a component of the Human Development Index (HDI) criteria Life expectancy at birth Average education level Standard of living All the above 223. An empirical relationship helps to make sense of the value of trade between any pair of countries Supply and demand model The Keynesian model Gravity model Invisible hand model 224. The exchange of goods and services between countries International trade Exports Imports Protectionism 225. Goods produced domestically and sold abroad Exports Imports International trade Protectionism 226. Goods produced abroad and sold domestically Exports Imports International trade Protectionism 227. The difference between the amount produced and the amount traded. Consumption Production Export Import 228. The ability to produce a good using fewer inputs than another producer Comparative advantage Competitive advantage Absolute Disadvantage Absolute advantage 229. The ability to produce a good at a lower opportunity cost than another producer Absolute advantage Comparative advantage Competitive advantage Absolute Disadvantage 230. A trade theory holding that a country’s wealth is measured by its holdings of “treasure”, which usually means its gold. Mercantilism Theory of Country Size Factor-Proportions Theory 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. Absolute advantage Theory of Country Size Mercantilism Product Life Cycle Theory 232. Rulers encourages exports by putting limitations on imports. This approach is called ……. Protectionism Interdependence Mercantilism 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. Adam Smith David Ricardo Karl Marx John Maynard Keynes 234. Countries produce and export goods that require resources in abundance, and import goods that require resources in short supply. Theory of Country Size Product Life Cycle Theory Competitive advantage theory 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. Leontief Paradox Factor-Proportions Theory Theory of Country Size 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. Theory of Country Size Country Similarity Theory Product Life Cycle Theory 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 Balance of Payments Balance of Trade Balance Sheet Account Balance 238. A trading account which records all the transactions made between one country and the rest of the world Financial Account Capital Account Balance of Payments Current Account 239. One-sided transaction transfers characterized by a resident entity in one nation providing a non-resident entity with an economic value. Current Account Capital Account Current transfers Account Balance 240. Records the net flow of investment transaction and the international undertakings of assets into an economy Capital Account Current transfers Current Account Balance of Trade 241. Any one of the types in which wealth can be held Asset Bank account Money Gold 242. Operated by a nation's central bank to buy and sell foreign currencies Reserve account Bank account Current Account Capital Account 243. The difference between the value of a country's exports and the value of its imports Balance of Payments Balance of Trade Balance Sheet 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. Balance of Trade Trade Liberalization Economic Integration Protectionism 245. In a ……….., countries would offer tariff reductions, though perhaps not eliminations, to a set of partner countries in some product categories. Preferential Trade Agreement Free Trade Area Economic Union 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. Preferential Trade Agreement Single market Economic Union Free Trade Area 247. McDonald’s opening restaurants in Japan would be considered a Horizontal FDI Vertical FDI Conglomerate FDI Platform FDI 248. McDonald’s could purchase a large-scale farm in Canada to produce meat for their restaurants Vertical FDI Platform FDI Horizontal FDI Conglomerate FDI 249. If Virgin Group, which is an entertainment company based in UK, acquired a clothing line in France Vertical FDI Horizontal FDI Conglomerate FDI Platform FDI 250. If Ford purchased manufacturing plants in Ireland with the primary purpose of exporting cars to other countries in the EU Conglomerate FDI Platform FDI Vertical FDI 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 Green-field FDI Brownfield FDI Platform FDI 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 Brownfield FDI Green-field FDI Vertical FDI Platform FDI 253. Commercial enterprise in which two or more organizations combine their resources to gain a tactical and strategic edge in the market Green-field FDI Platform FDI Conglomerate FDI 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. 50% 10% 20% 51% 255. An example of monetary union EU NAFTA EUROZONE ASEAN 256. How many country members of the EU use the EURO as their currency? 19 20 18 21 Download 65.74 Kb. Do'stlaringiz bilan baham: 
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