Chapter 2

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Several nations are frustrated with the slow progress of the most recent round of WTO trade negotiations. To vent their frustration, several countries are:

Negotiating bilateral trade agreements.

_____ is the practice whereby a foreign producer intentionally sells their products in the United States for less than the cost of production to undermine the competition and take control of the market.

Predatory Pricing

An agreement signed willingly between the importing country and the exporting country for a restriction on the volume of exports is called a:

Voluntary export restraint

Which of the following is one of the four ongoing forces supporting the growth of international trade?

International monetary fund

Which of the following is a defining characteristic of a balance-of-payments statement?

It records all financial transactions between the residents of a country and those of the rest of the world.

Which of the following acronyms refers to the international forum that was created for member countries to engage in the negotiation of tariffs and other barriers to trade?

GATT

Tall Pine Plywood Company has just received a notice that a shipment of plywood (2 metric tons) has been rejected by Japanese customs because the knotholes commonly found on a plywood sheet are too large. Which of the following categories of nontariff barriers primarily checks such quality issues?

Standards

_____ and the World Bank Group are two global institutions created primarily to assist nations in becoming and remaining economically viable.

The International Monetary Fund

_____ is a new nontariff barrier that was designed to prevent foreign producers from using predatory pricing.

Antidumping law

The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds.

current account

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. These efforts were primarily aimed at

dampening the spread of communism

Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations?

negotiation of the general agreement on tariffs and trade

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

It became a part of the World Trade Organization

The rapid growth of war-torn economies and previously underdeveloped countries, coupled with large-scale economic cooperation and assistance that followed World War II led to

The rise of new global marketing opportunities

Which of the following is the major reason behind the failure of American MNCs to completely dominate the European markets as predicted by Servan-Schreiber?

The resurgence of competition worldwide

By the year 1971, the United States was witnessing

A huge trade deficit

The system of accounts that records a nation's international financial transactions is most accurately called its

Balance of payments

A company in the _______ stage of international marketing involvement sells its goods to foreign markets only when there is a surplus due to variations in production levels. Such a company has little or no intention of maintaining continuous market representation

Infrequent foreign marketing

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that

trade shall be conducted on a nondiscriminatory basis

Which of the following emerged as a successor to the GATT following the Uruguay Round of GATT negotiations?

World Trade Organization

The Foreign Corrupt Practices Act (FCPA) is specifically addressed in the ______ section of the Omnibus Trade and Competitiveness act

Export Expansion

Which of the following trading partners of the US became its topmost "trade problem" at the beginning of the 21st century?

China

Which of the following trade policy tools makes it mandatory for its importers who want to buy a foreign good to apply for an exchange permit?

Government approval

When the United States refuses to sell goods to Iran because of the perception that the country harbors radicals and terrorists, the refusal is most accurately referred to as a(n)

embargo

Which of the following types of nontarrif barriers strictly falls under the category of specific limitations on trade?

embargos

a specific unit or dollar limit applied to a particular type of good is called a(n)

quota

a tax imposed by a government on goods entering at its borders is most accurately termed as a(n)

tariff

which of the following arguments regarding the need for protectionism is recognized by economists as valid?

protection of an infant industry

Ideal electronics is a leading manufacturer of consumer electronics in Korea. The company as also ventured into foreign markets and has even set up production plants in some foreign locations. They have different marketing strategies for different markets as they segment their markets mostly on the basis of national borders. Ideal Electronics is in the _____ stage of international marketing involvement

International marketing

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