WorksheetsGlobal Trade Quiz
Total questions: 89
Worksheet time: 7hrs 25mins
Why is global trade important to the United States, and how is it measured?
It is not important and is not measured.
It is important for cultural exchange and measured by population.
It is important for economic growth and measured by trade balance.
It is important for tourism and measured by visitor numbers.
Why do nations trade?
To increase isolation.
To access resources and markets.
To reduce employment.
To decrease economic growth.
What are the barriers to international trade?
Language differences.
Trade agreements.
Tariffs and quotas.
Cultural similarities.
How do governments and institutions foster world trade?
By increasing tariffs.
By creating trade barriers.
By establishing trade agreements.
By promoting isolationism.
What are international economic communities?
Groups of isolated countries.
Organizations that promote global trade.
Local business clubs.
National sports teams.
How do companies enter the global marketplace?
By ignoring international markets.
By exporting and forming partnerships.
By focusing only on local markets.
By reducing product quality.
What threats and opportunities exist in the global marketplace?
Only threats exist.
Only opportunities exist.
Both threats and opportunities exist.
Neither threats nor opportunities exist.
What are the advantages of multinational corporations?
Limited market access.
Increased costs.
Access to global markets and resources.
Decreased brand recognition.
What are the trends in the global marketplace?
Decreasing globalization.
Increasing isolationism.
Growing digital trade and sustainability.
Declining international cooperation.
What challenge do organizations face when entering new global markets according to the text?
Identifying local competitors
Reviewing potential new suppliers
Reducing product prices
Increasing advertising budgets
By what year did Schlater unify all of the franchises under one corporate umbrella?
1983
1995
2007
2010
What did Schlater do with the $250,000 he won in a lottery?
Invested in new stores
Donated to Cardinal Carter High School
Bought a new house
Traveled around the world
What is one particular benefit of master franchisees mentioned in the text?
Access to global marketing strategies
Local expertise
Reduced operational costs
Increased product variety
Why is having a global vision important for U.S. businesses?
It helps in reducing domestic competition.
It allows businesses to ignore international markets.
It enables recognition and reaction to international business opportunities.
It focuses solely on local market expansion.
What percentage of Starbucks' total stores are international?
50%
66%
33%
75%
Which of the following companies is NOT mentioned as a recognizable name in U.S. global trade?
Apple
Microsoft
General Electric
How much has world trade grown over the past three decades according to the text?
From $100 billion to $1 trillion
From $200 billion to more than $1.4 trillion
From $500 billion to $2 trillion
From $300 billion to $1 trillion
What percentage of their gross domestic product (GDP) do France, Great Britain, and Germany derive from world trade?
28 percent
55 percent
14 percent
9 percent
Which company has 14 percent of the U.S. auto market?
Nissan
Honda
Toyota
Ford
What is the growth rate of trade-dependent jobs compared to U.S.-dependent jobs?
Twice the growth
Three times the growth
Four times the growth
Equal growth
What percentage of all exporters are small and medium-size firms?
85 percent
98 percent
75 percent
60 percent
What is the estimated annual value of international trade?
$10 trillion
$12 trillion
$16 trillion
$20 trillion
What percentage of the world's exports and imports do developed nations account for?
50%
60%
70%
80%
Which country is both the largest exporter and importer in the world?
China
Germany
United States
Japan
What is the term for when a country's exports exceed its imports?
Trade deficit
Trade surplus
Balance of payments
Exchange rate
In 2016, what was the trade deficit of the United States?
$300 billion
$400 billion
$500 billion
$600 billion
What is the balance of payments?
The difference between exports and imports
A summary of a country's international financial transactions
The total value of goods produced domestically
The exchange rate between two countries
What is the effect of a country's currency appreciating?
Less of that country's currency is needed to buy another country's currency.
More of that country's currency is needed to buy another country's currency.
It makes the country's exports more expensive.
It has no effect on international trade.
What happens when the U.S. dollar depreciates relative to the Japanese yen?
U.S. residents pay more dollars to buy Japanese goods.
U.S. residents pay fewer dollars to buy Japanese goods.
Japanese goods become cheaper for U.S. residents.
U.S. exports to Japan decrease.
What is a floating exchange rate?
A fixed rate set by the government.
A rate that changes based on demand and supply of each currency.
A rate that is determined annually.
A rate that is the same for all countries.
What is a devaluation?
An increase in the value of a country's currency.
A decrease in the value of a country's currency.
A stabilization of a country's currency value.
A fixed exchange rate system.
Why do nations trade according to the text?
To protect domestic industries
To acquire resources not available domestically
To increase tariffs and quotas
To reduce employment
What is an absolute advantage?
Producing goods at a higher cost than other countries
Producing goods at the same cost as other countries
Producing goods at a lower cost than any other country
Producing goods without any cost
What is the principle of comparative advantage?
Specializing in products that a country can produce most readily and cheaply
Producing all goods domestically
Avoiding trade with other countries
Focusing on high-cost production
What is free trade?
Restricting trade with tariffs and quotas
Allowing citizens to trade without government regulation
Prohibiting international trade
Imposing high taxes on imports
What is protectionism?
Encouraging free trade
Protecting home industries with tariffs and quotas
Reducing domestic production
Eliminating all trade barriers
What is one of the main fears associated with globalization according to the text?
Increase in local job opportunities
Loss of jobs due to imports or production shifting abroad
Higher wages for all workers
Decrease in international trade
What is outsourcing as described in the text?
Hiring more local employees
Sending domestic jobs to another country
Increasing production within the country
Reducing the number of employees
Which company is mentioned in the text as having outsourced jobs to Mexico?
IBM
Dell
Carrier
AT&T
Describe the policy of free trade and its relationship to comparative advantage.
Free trade allows countries to focus on their strengths, enhancing comparative advantage.
Free trade restricts countries from specializing in their strengths.
Free trade has no impact on comparative advantage.
Free trade increases tariffs and barriers.
Why do people fear globalization?
It leads to cultural exchange and understanding.
It can result in job outsourcing and economic instability.
It promotes innovation and economic growth.
It reduces trade barriers and tariffs.
What are the benefits of globalization?
Decreased innovation and economic growth.
Increased trade barriers and tariffs.
Creation of jobs and wealth through global trade.
Isolation of countries from foreign markets.
What are the barriers to international trade?
Only tariff barriers.
Only non-tariff barriers.
Natural barriers, tariff barriers, and non-tariff barriers.
Only cultural barriers.
What is a tariff?
A tax on imported goods
A subsidy for domestic products
A discount on exports
A fee for shipping goods
What is the purpose of protective tariffs?
To make imported products more attractive
To increase domestic product prices
To make imported products less attractive
To encourage free trade
Which of the following is an argument for tariffs?
Tariffs discourage free trade
Tariffs protect infant industries
Tariffs raise consumer prices
Tariffs decrease military preparedness
What is an import quota?
A tax on imported goods
A limit on the quantity of a good that can be imported
A subsidy for domestic products
A ban on exporting goods
What is an embargo?
A tax on exports
A complete ban on importing or exporting a product
A limit on the quantity of imports
A subsidy for domestic industries
What are buy-national regulations?
Rules that give special privileges to domestic manufacturers and retailers.
Laws that require a company earning foreign exchange to sell it to a central bank.
Regulations that allow free trade between countries.
Policies that encourage foreign investment in domestic markets.
What is the purpose of exchange controls?
To limit the amount of foreign exchange sold to companies.
To encourage free trade between countries.
To increase the import of foreign goods.
To promote domestic tourism.
What is dumping in international trade?
Charging a lower price for a product in foreign markets than in the home market.
Increasing tariffs on imported goods.
Selling products at a higher price in foreign markets.
Encouraging domestic production over imports.
What is predatory dumping?
Attempting to gain control of a foreign market by destroying competitors with low prices.
Selling products at a higher price in foreign markets.
Increasing tariffs on imported goods.
Encouraging domestic production over imports.
What is the Uruguay Round of trade negotiations known for?
Increasing tariffs by one-third worldwide
Reducing tariffs by one-third worldwide
Eliminating tariffs completely
Increasing tariffs by two-thirds worldwide
Which organization replaced the old General Agreement on Tariffs and Trade (GATT)?
United Nations
International Monetary Fund
World Trade Organization
World Bank
What is one of the most notable aspects of the Uruguay Round agreement?
It focuses solely on agricultural products
It includes recognition of new global realities
It eliminates all trade barriers
It only benefits developed countries
Which countries are not members of the World Trade Organization (WTO)?
United States, Canada, Mexico
North Korea, Turkmenistan, Eritrea
China, India, Brazil
Japan, South Korea, Australia
What is the role of the World Trade Organization (WTO) in international disputes?
To provide loans to developing countries
To set trade agreements between countries
To settle disputes between competing multinational corporations
To regulate international shipping routes
Which country claimed that tuna imported from Mexico was not meeting the "dolphin safe" criteria?
Canada
United States
India
Argentina
How much aid does the United States claim Europe has given Airbus to develop airplanes?
$10 billion
$15 billion
$20 billion
$25 billion
What is the primary purpose of the World Bank?
To regulate international trade
To provide military aid
To offer loans to help developing nations relieve their debt burdens
To manage global environmental policies
Diagram question related to Airbus A380 aircraft competition.
What is the primary purpose of the International Monetary Fund (IMF)?
To provide long-term loans for infrastructure projects
To promote trade through financial cooperation and eliminate trade barriers
To regulate global stock markets
To manage international shipping routes
What is a potential risk associated with relying on the IMF?
Increased global trade
Moral hazard problem
Decreased financial crises
Improved currency stability
What is a preferential tariff?
A tax on luxury goods
A tariff that gives advantages to one nation over others
A tax on imported food products
A tariff that applies to all nations equally
Which countries are part of the North American Free Trade Agreement (NAFTA)?
United States, Canada, and Brazil
United States, Canada, and Mexico
United States, Mexico, and Argentina
United States, Canada, and Chile
What was the primary impact of NAFTA on U.S.-Mexican trade?
Increased tariffs on Mexican exports
Opened the Mexican market to U.S. companies
Decreased U.S. exports to Mexico
Increased tariffs on U.S. exports
By how much did U.S.-Mexican trade increase annually after NAFTA came into effect?
From $80 billion to $100 billion
From $80 billion to $200 billion
From $80 billion to $515 billion
From $80 billion to $300 billion
What did NAFTA remove that limited transactions in U.S. goods and services?
Trade agreements
Licensing requirements, quotas, and tariffs
Export incentives
Import restrictions
What is the main contention in the softwood lumber dispute between the U.S. and Canada?
U.S. claims Canada is overpricing lumber
U.S. claims Canada is unfairly subsidizing lumber production
Canada claims U.S. is dumping lumber
Canada claims U.S. is restricting lumber imports
How many U.S.-made components does Delphi Corp. use daily for assembly in Ciudad Juárez?
50 million
60 million
70 million
80 million
Which countries are included in the Mercosur trade agreement?
Peru, Brazil, Argentina, Uruguay, Paraguay
Costa Rica, Dominican Republic, El Salvador
Germany, France, Italy, Spain
Canada, Mexico, United States
What is the primary benefit of the Central America Free Trade Agreement (CAFTA) for the United States?
Increase in U.S. exports
Reduction of tariffs on imports
Increase in oil production
Expansion of agricultural land
When was the Maastricht Treaty ratified by the European Community (EC)?
1993
2005
1985
2000
What was the main purpose of the Maastricht Treaty?
To create a unified European Market
To establish a new currency
To expand the European Union to Asia
To increase military cooperation
Which of the following countries is a candidate country for EU membership?
France
Germany
Albania
Italy
What is the term used for the pooling of sovereignty among EU member states?
European Unionization
European Integration
European Collaboration
European Federation
In 2016, which country voted to leave the European Union?
France
Germany
United Kingdom
Italy
What is one of the principal objectives of the European Union?
To promote economic progress of all member countries
To increase military power
To establish a single language
To create a global currency
What has the European Union's single market created since its founding?
5 million new jobs
2.5 million new jobs
10 million new jobs
1 million new jobs
How much was Google fined by the EU for favoring some of its own services in search results?
$1.5 billion
$2.7 billion
$3.5 billion
$4.2 billion
What has the removal of national restrictions enabled for Europeans?
To travel to the United States
To go to another EU country to work or spend their retirement
To invest in Asian markets
To establish businesses in Africa
Explain the pros and cons of NAFTA.
NAFTA increases trade but can lead to job losses.
NAFTA decreases trade and increases job opportunities.
NAFTA has no impact on trade or jobs.
NAFTA only benefits European countries.
What is the European Union? Will it ever be a United States of Europe?
The EU is a political and economic union; it may become a United States of Europe.
The EU is a single country; it will never change.
The EU is a trade agreement; it is already a United States of Europe.
The EU is a cultural organization; it has no political ambitions.
How do companies enter the global marketplace?
By earning additional profits and having unique advantages.
By avoiding international markets completely.
By focusing only on domestic sales.
By ignoring market information.
What is the least complicated and least risky alternative for a company to enter the global market?
Licensing
Exporting
Franchising
Joint Ventures
Which country is the world's largest exporter, followed by the United States?
Germany
Japan
China
India
What does the U.S. Small Business Administration (SBA) offer to help small and medium-size firms export?
Export Working Capital Program
Export Tax Relief Program
Export Subsidy Program
Export Tariff Program
What is the legal process called whereby a firm agrees to let another firm use a manufacturing process, trademark, patent, trade secret, or other proprietary knowledge?
Exporting
Licensing
Franchising
Joint Ventures
Which industry is the largest single category in international licensing?
Automotive
Entertainment and character licensing
Fashion
Technology
