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MPP International Trade MCQ

Total questions: 53

Worksheet time: 2hrs 41mins

Name
Class
Date
1.
A trade agreement that eleminates barriers between the United States, Canada, and Mexico.
a)
ASEAN
b)
EU
c)
NAFTA
2.
A union which promotes free movement of goods and workers across borders in Euroupean countries.
a)
ASEAN
b)
EU
c)
NAFTA
3.

The association of 12 member nations of southeast Asia to promote economic growth, free trade and economic collaboration between member nations is called (a)   .

Choose from the below words
ASEAN
EU
NAFTA
4.
A ban; government prohibits the import of that item.
a)
embargo
b)
standard
c)
subsidy
5.
Government makes payments to local suppliers to reduce the production costs of the supplier.
a)
embargo
b)
standard
c)
subsidy
6.

A tax on imports

a)

tariff

b)

import tax

c)

supply

d)

embargo

7.

Rules used to try to limit trade with other countries

a)

embargo

b)

tariff

c)

trade barriers

d)

quota

8.

Which of these country is NOT a member of ASEAN?

a)

Cambodia

b)

China

c)

Laos

d)

Brunei

9.
Why would a country impose a tariff or quota on imported goods?
a)
to raise the price of imported goods and encourage people to buy local
b)
to raise the price of imported goods to help other countries make more money
c)
to be mean!
10.
A tariff is when a _______ is put on an imported good
a)
Tax
b)
Limit
c)
Block
11.
Who will be hurt by a tariff on medicine coming into the US.
a)
US medical companies
b)
US government revenue
c)
Sick people in US 
12.

What is globalisation?

a)

The process by which the world is becoming increasingly interconnected.

b)

The process by which the world is becoming less interconnected.

c)

The process by which the world is becoming more divided.

13.

Which factor might attract a multinational corporation to a country?

a)

Good tourist attractions.

b)

Cheap raw materials.

c)

High average monthly wage.

14.

One negative consequence of globalisation for less-developed countries is (a)  

Choose from the below words
Enhanced cultural uniqueness
Skills transferred to domestic work
Improved terms of trade
Wider income inequalities
15.

A disadvantage of globalisation for manufacturers in the UK would include which one of the following

a)

Access to wider markets

b)

Difficult to find workers

c)

Low-cost competition from overseas firms

d)

The spread of technology could cause local unemployment

16.

A large company such as McDonalds that has operations in more than one country.

a)

Domestic Corporation

b)

Multinational Corporation

c)

Foreign Corporation

d)

State Corporation

17.

Some negatives of globalization include (a)  

Choose from the below words
Workers are exploited in sweatshops
Pollution and deforestation
Low wages for factory workers in As
All of the answers are correct
18.

A country will become an exporter of a good if

a)

there are enough producers of that good

b)

the world market price is above the domestic price

c)

the government imposes export quotas

d)

the world market price is below the domestic price

19.

In 2016, the United States limited the number of Japanese cars imported to 2 million per year. This is an example of a/an ___________________

a)

Embargo

b)

Tariff

c)

Standard

d)

Quota

20.

What are BENEFITS of free trade for CONSUMERS? There are TWO.

a)

Lower price for consumers - increased competition and greater efficiency leads to lower prices

b)

Economies of scale - firms can expand and experience decreasing average costs of production

c)

Greater choice for consumers - countries can import a larger variety of goods and services, possibly higher quality

d)

Profits competed away - with the rise of competition domestic firms abnormal profits may be competed away

21.

What is the relationship between culture and communication?

a)

Culture is unrelated to communication

b)

Culture involves interacting and communicating with other people and the world around them

c)

Culture is solely about traditional practices

d)

Culture is only about personal feelings

22.

In high-context cultures, what is valued in relationship building?

a)

Individual achievement

b)

Trust and group harmony

c)

Direct communication

d)

Independence

23.

What is important in communication within low-context cultures?

a)

Social status

b)

Clarity and brevity

c)

Non-verbal cues

d)

Trust and harmony

24.

Which dimension in Hofstede's model deals with the avoidance of uncertainty?

a)

Masculinity

b)

Individualism

c)

Uncertainty avoidance

d)

Power distance

25.

In Hofstede's dimensions, which one focuses on traditional gender roles?

a)

Masculinity

b)

Individualism

c)

Power distance

d)

Uncertainty avoidance

26.

What does "Individualism" contrast with in cultural dimensions?

a)

Masculinity

b)

Collectivism

c)

Power distance

d)

Long-term orientation

27.

What does this symbol mean?

a)

means your trademark has been registered

b)

means your trademark has not been registered

c)

means your copyright has been registered

d)

means your copyright has a creative commons license

28.

What does the term "Intellectual property" mean?

a)

Anything owned by a scientist or professor

b)

Creations of the mind

c)

Media products produced by a specific company

d)

Media products advertised on TV

29.

Brand names, slogans, and logos for a product are examples of __________________________.

a)

Servicemark

b)

Trademark

c)

Copyright

d)

Patent

30.

Choose the image below that represents something most likely protected by copyright:

a)

b)

c)

31.

Imagine a sports team sets up a company to sell its own range of clothes. What type of intellectual property can the team use to show that the clothes are made by them?

a)

Copyright

b)

Trademarks

c)

Geographical Indications

d)

Patents

32.

Can I use a picture from my favourite show and print them on a shirt?

a)

YES, it is all fine.

b)

NO, it will be copyright infringement.

33.

Match the following vocab terms

a)

free trade

1.

unrestricted trade

b)

protectionism

2.

happens when trade barriers are put up

c)

trade barrier

3.

anything that restricts trade

d)

tariffs

4.

import taxes

34.

What is a common characteristic of low-context cultures in communication?

a)

Reliance on non-verbal cues

b)

Indirect communication style

c)

Emphasis on explicit verbal messages

d)

Focus on group harmony

35.

Why might a country choose to subsidize its local industries?

a)

To increase the cost of local goods

b)

To reduce government spending

c)

To discourage foreign investment

d)

To make local products more competitive internationally

36.

"Going global, thinking local." Explain what this phrase means and discuss the potential benefits and conflicts for a company in following this logic in under 200 words

4 lines
37.
Label the axes of the graph.
38.

Match the following

a)

Tariff

1.

A tax placed on an imported good

b)

Trade Off

2.

when one thing is exchanged for the use of another

c)

Comparative Advantage

3.

A country’s ability to produce a good at a lower cost than another country

d)

Gross domestic product (GDP)

4.

the value of all final goods and services sold in a country

e)

Export

5.

goods produced in one nation and sold to another nation

39.

For foreign direct investment (FDI) to occur, a firm should primarily:

a)

conduct cross-border bartering with neighboring countries.

b)

invest resources in business activities outside its home country.

c)

export goods or services to consumers in another country.

d)

. import goods or services from producers in another country.

40.

An example of foreign direct investment (FDI) would be which of the following?

a)
A German company purchasing stocks in a French corporation.
b)
A Canadian firm investing in local real estate.
c)
A U.S. company opening a manufacturing plant in Mexico.
d)
A Japanese company acquiring a U.S. tech startup.
41.

LIST 3 reasons a business may expand its international markets in under 1000 characters

4 lines
42.

What is a potential benefit of foreign direct investment (FDI) for a host country?

a)

Higher trade barriers

b)

Access to new technologies

c)

Decreased foreign relations

d)

Increased local unemployment

43.

Leo, a toy manufacturer, wants to expand his business internationally. What is licensing in the context of international market entry?

a)

Establishing a new company in a foreign country

b)

Allowing a foreign company to produce and sell your product in exchange for a fee or royalty

c)

Merging with a foreign company

d)

Selling products directly to consumers in another country

44.

What is a joint venture?

a)

A solo business operation in a foreign market

b)

A partnership between a domestic and a foreign company to share resources and risks

c)

A method of exporting goods

d)

A type of licensing agreement

45.

Which of the following is an advantage of exporting as a method of entering international markets?

a)

High transportation costs

b)

Low risk and investment

c)

Complete control over foreign operations

d)

High tariffs and trade barriers

46.

What is a disadvantage of licensing as a method of entering international markets?

a)

High level of control over the licensee

b)

Risk of creating a future competitor

c)

High initial investment

d)

Limited market access

47.

What is the concept of monochronic time?

a)

Preference for doing one thing at a time because time is limited, precisely segmented and schedule driven

b)

Preference for doing more than one thing at a time because time is flexible and multidimensional

c)

Preference for doing one thing at a time because time is flexible and multidimensional

d)

Preference for doing more than one thing at a time because time is limited, precisely segmented and schedule driven

48.

What does culture encompass?

a)

Only behaviors and material objects

b)

Only social interactions

c)

Beliefs, values, behaviors, and material objects

d)

Only beliefs and values

49.

GDP stands for

a)
Gigantic Domestic Production
b)
Gross Domestic Product
c)
Great Domestic Profit
50.

When people trade how do both sides benefit?

a)

Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need

b)

Countries can take advantage of each other making the international market more secure

c)

Countries are able to learn the weaknesses of other countries and exploit those for natural resources

d)

Countries are able to enter other countries with spies and foreign agents to undermine governments.

51.

What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar?

a)

European exports to the United States would become less expensive.

b)

U.S. exports to Europe would become cheaper.

c)

European imports from the United States would increase.

d)

U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive.

52.

President Trump has enacted tariffs against China and China has retaliated with tariffs of its own against the United States. This type of situation is known as...

a)

a trade war

b)

free trade

c)

national security

d)

Gross Domestic Product (GDP)

53.

One cost of trade barriers is that tariffs increases the __________________ of imported goods.

a)

products

b)

prices

c)

sales

d)

services