INTERNATIONAL BUSINESS & TRADE – QUIZ #1

The socioeconomic reform process of eliminating trade, investment, information technology, and cultural and political barriers access countries, which in turn can lead to increased economic growth and geopolitical integration and interdependence among nations of the world.

• Globalization

• Liberalization

• International Business

• Trade

Key international institutions that facilitate the Globalization

• The International Monetary Fund (IMF)

• The World Bank (WB)

• The World Trade Organization (WTO)

• All of the above

Effective policy measures that promote Globalization which is not included

• Anticorruption Policies

• Competitive Market

• Bad Governance

• Property Rights

Supports the premise that a nation could only gain from trade if it had a trade surplus, which is, more exporting than importing

• Theory of Absolute Advantage

• Mercantilism Theory

• Theory of Comparative Advantage

• Heckscher-Ohlin (H.0.) Theory

This model explains that the interaction of these four groups of characteristics will determine a country’s competitive advantage in the global arena.

• Theory of Comparative Advantage

• Theory of Absolute Advantage

• Factor Price Equalization Theory

• Porter’s Diamond Model of National Competitive Advantage

Taxes on imports; also known as

custom duties

• Tariff

• Specific Tariff

• Valorem Tariff

• None of the above

taxes on imports that are collected by a designated government agency responsible for regulating imports

• Preferential Duties

• Custom Duties (Bureau of Customs)

• Generalized System of Preferences (GSP)

• All of the above

limits the amount or number of units of products that can be imported to a country. This are worse than import tariffs because when a quota is reached that particular good can no longer be imported or purchased.

• Export Quotas

• Domestic Content Provision

• Import Quotas

• Voluntary Export Restrain

Pros or the benefits of regional integration which is not included

• Creating a larger pool of consumers…

• Encouraging economies of scale in production…

• losing sovereignty, national independence and identity

• Freeing the flow of capital, labor and technology…

headquarters in Jakarta was established on August 1967 by five founding members: Indonesia, Malaysia, Singapore, Thailand and the Philippines. As of 2021 the

additional members are Brunei, Burma (Myanmar), Cambodia, and Vietnam.

• EU

• NAFTA

• APEC

• ASEAN