Exam (elaborations) TEST BANK International Marketing 16th Edition by Cateora, Philip, Graham, John, Gilly, Mary

Exam (elaborations) TEST BANK International Marketing 16th Edition by Cateora, Philip, Graham, John, Gilly, Mary Full file at https://TestBanksC 2-1 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Test Bank for International Marketing 16th Edition Cateora Complete downloadable file at: https://TestBanksC True / False Questions 1. After World War II, the U.S. provided assistance to other countries to develop their markets and improve global trade though it gained no returns on these initiatives. True False 2. The GATT became part of the World Trade Organization in 1995, with the ratification of the Uruguay Round agreements. True False 3. As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as underdeveloped countries. True False 4. By the year 1971, the United States was selling more to other countries than it bought from them; that is, the United States had a favorable balance of trade. True False Full file at https://TestBanksC 2-2 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 5. The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at much faster rates when compared to the developing economies. True False 6. A nation’s balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time. True False 7. In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition. True False 8. The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries. True False 9. As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar to higher levels. True False 10. Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism. True False Full file at https://TestBanksC 2-3 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 11. A case might be made for temporary protection of markets with excess productive capacity or excess labor when such protection could facilitate an orderly transition. True False 12. To encourage development of domestic industries, governments work on reducing trade barriers. True False 13. In general, tariffs decrease inflationary pressures. True False 14. Tariffs are often used as reprisals against protectionist moves of trading partners. True False 15. Quotas strictly permit importing on a case-by-case basis. True False 16. Quotas are more flexible than import licenses. True False 17. A VER is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established. True False Full file at https://TestBanksC 2-4 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 18. A government boycott is a partial restriction against the purchase and importation of certain goods and/or services from other countries. True False 19. In the context of blocked currency, blockage is accomplished by refusing to allow an importer to exchange its national currency for the currency of the seller. True False 20. It is mandatory for importers who want to buy a foreign good to apply for a business permit in that country. True False 21. The exchange permit can stipulate an unfavorable rate of exchange depending on the desires of the government. True False 22. The United States and other countries require some products to contain a percentage of “local content” to gain admission to their markets. True False 23. Antidumping laws were specifically designed to prevent foreign producers from investing in the U.S. local markets. True False Full file at https://TestBanksC 2-5 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 24. The Omnibus Trade and Competitiveness Act of 1988 focuses on assisting businesses to be more competitive in world markets as well as on correcting perceived injustice in trade practices. True False 25. The Omnibus Trade and Competitiveness act gives the U.S. president authority to restrict sales of a country’s products in the U.S. market if that country imposes unfair restrictions on U.S. products. True False 26. Obtaining export licenses for products on the export control list is more arduous than for those items that are exempted from the list. True False 27. The GATT panels were formed to resolve bilateral trade disputes and thus have both advisory and enforcement powers. True False 28. The decisions taken by the World Trade Organization in solving trade disputes among members are binding ones. True False 29. The World Bank was formed with the primary objective of overcoming inadequate monetary reserves and dealing with unstable currencies which were particularly vexing problems in global trade. True False Full file at https://TestBanksC 2-6 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 30. Since both SDRs and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold rather than dollars. True False Multiple Choice Questions 31. 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: A. halting the growth of Nazi Germany. B. dampening the spread of communism. C. dissolving the colonial powers. D. building a stronger defense force. E. creating a worldwide trade bloc to counter the OPEC countries’ clout. 32. After World War II, the United States set out to infuse the ideal of capitalism throughout as much of the world as possible. The _____, aimed at assisting in rebuilding Europe, is the plan most closely associated with this endeavor. A. Eisenhower Plan B. Marshall Plan C. Bradley Plan D. Roosevelt Plan E. Truman Plan Full file at https://TestBanksC 2-7 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 33. What was the most apparent reciprocal impact of the foreign economic assistance given by the United States? A. European countries formed an alliance to counter the OPEC countries’ clout. B. European countries formed an alliance to counter the OPEC countries’ clout. C. All recipient countries appointed Americans to manage their central banks. D. Purchases of U.S. agricultural products, manufactured goods, and services by the recipient countries increased. E. Distribution of economic power and potential became more uneven. 34. Which of the following factors was primarily responsible for the excess production capacity in the U.S. in the first half of the twentieth century? A. Technological innovation revolutionized production during this time. B. Many firms from other nations shifted their production facilities to the U.S. C. Domestic demand was at a historic low and resulted in excess capacity. D. Swelling labor supply of returning military after World War II. E. Influx of migrant laborers from Europe and Japan. 35. Which of the following was the most significant move of the 1980s that contributed toward international cooperation among trading nations? A. Formation of the United Nations Development Programme. B. Creation of the United Nations. C. Establishment of the World Trade Organization. D. Signing of the Montreal Protocol. E. Negotiation of the General Agreement on Tariffs and Trade. Full file at https://TestBanksC 2-8 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 36. 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? A. UNHCR B. GATT C. WMO D. NPT E. UNDP 37. What was the outcome for the GATT after the ratification of the Uruguay Round agreements? A. With the ratification of the Uruguay Round agreements, the GATT became part of the World Trade Organization (WTO) in 1995, and its 117 original members moved into a new era of free trade. B. It became part of the World Trade Organization. C. It led to the uneven distribution of economic power and potential. D. The European Union decided to stay away from the treaty. E. The original purpose was sidelined in favor of political and military intervention between member states. 38. 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: A. the rise of new global marketing opportunities. B. the uneven distribution of economic power. C. the dissolution of GATT. D. the spread of Communism. E. the sharp reduction of the production capacity in the U.S. Full file at https://TestBanksC 2-9 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 39. Which were the two major challenges faced by U.S. multinational corporations at the close of the 1960s? A. The creation of the Soviet Union and the higher tariffs on imports. B. Growing jingoistic nationalism and a negative population growth rate in major international markets. C. Resistance to direct investment and increasing competition in export markets. D. Increasing Chinese domination in the manufacturing sector and the falling dollar in global markets. E. Political intervention in free trade movement and growing influence of consumer rights advocacy in the home market. 40. Post World War II, it was noticed that there was worldwide economic growth and countries once classified as less developed were reclassified as _____. A. capitalist countries B. free trade economies C. tier-II countries D. developed countries E. newly industrialized countries Full file at https://TestBanksC 2-10 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 41. Which of the following presents the correct picture of the outcome of increased world trade after the 1950s, contrary to Servan-Schreiber’s prediction? A. Third World countries were excluded from this economic growth leading to stark imbalances in wealth. B. The European Union became the center of world trade, taking the position away from the U.S. C. The U.S. attained a positive balance of trade scenario in the 1950s and maintained it continuously till the Great Recession. D. Economic power and potential became more evenly distributed among the countries of the world. E. SDRs and gold lost their utility as the basic medium of financial exchange and most monetary statistics started relating to the U.S dollar. 42. 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? A. The resurgence of competition worldwide. B. The uneven distribution of economic power. C. The restructuring of U.S industries. D. The decadence of Communism. E. The dissolution of colonial powers. Full file at https://TestBanksC 2-11 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 43. Which of the following strategies was employed by the US to regain its lost market share for capital goods by the late 1990s? A. Funding the Communist nations. B. Restructuring its industries to be more lean and mean. C. Providing financial assistance to the under-developed countries. D. Raising average U.S. tariffs on more than 20,000 imported goods. E. Outsourcing its production activities to other countries. 44. By the year 1971, the United States was witnessing: By the year 1971, the United States was witnessing: A. an increase in protectionist federal policies. B. a positive balance of trade. C. a sharp rise in domestic and international demand. D. a huge trade deficit. E. an economic situation of the magnitude of the Great Depression. 45. In the late 1990s, most of the countries of the world saw a slow down in the unprecedented and precipitous growth of their economies. However, _____ remained unaffected by this trend. A. the United States B. Germany C. China D. Japan E. France Full file at https://TestBanksC 2-12 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 46. The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. _____ is one of the countries included in this list. A. Canada B. Nigeria C. Netherlands D. Indonesia E. Rhodesia 47. The system of accounts that records a nation’s international financial transactions is most accurately called its: A. supply chain management system. B. gross domestic product system. C. net domestic product payments. D. balance of payments. E. net national product systems. 48. Which of the following ensures that balance-of-payments records are always in balance? A. The sum of squares recording system. B. The ledger entry model. C. The double-entry bookkeeping system. D. The archival records system. E. The multifactor recording system. Full file at https://TestBanksC 2-13 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 49. Which of the following is true regarding the balance-of-payments records? A. The balance-of-payments accounts do not consider income brought in by non-resident citizens of a country. B. The fact that assets and liabilities balance does not essentially mean that a nation is in a particularly good financial condition. C. A balance of payments is not a record of condition. D. A balance of payments is a determinant of condition. E. A balance of payments records all the financial transactions of a country since 1980. 50. Which of the following is a defining characteristic of a balance-of-payments statement? A. It is a record of the transactions between the government of a country and the private companies. B. It records all financial transactions between the residents of a country and those of the rest of the world. C. It records the trade policies of the member nations of the WTO. D. It is an annual record of the profitable foreign transactions made by a particular country. E. It is a localfirm’s financial statement, where the credits and debits must offset each other. 51. Which of the following falls on the plus side of the U.S. balance of payments? A. Payments to the United States for insurance. B. The costs of goods imported. C. Spending by American tourists overseas. D. New overseas investments. E. The cost of foreign military. Full file at https://TestBanksC 2-14 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 52. Which of the following falls on the minus side of the U.S. balance of payments? A. Payments to the United States for insurance. B. Payments of dividends and interest on investments abroad. C. Return on capital invested abroad. D. New foreign investments in the United States. E. Spending by American tourists overseas. 53. A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement? A. Investment account B. Receivables account C. Services account D. Credit account E. Reserves account 54. The _____ of the balance-of-payments statement is most likely to record all merchandise exports, imports, and services plus unilateral transfers of funds. A. current account B. capital account C. credit account D. receivables account E. reserves account Full file at https://TestBanksC 2-15 © 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. 55. Which of the following sections of the balance-of-payments statement is a record of the direct investment, portfolio investment, and short-term movement of cash and technology to and from countries? A. Current account B. Capital account C. Credit account D. Receivables account E. Reserves account 56. The _____ account of the balance-of-payments statement is most likely to record all exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks. A. current B. capital C. credit D. receivables E. reserves 57. Which of the following arguments regarding the need for protectionism is recognized by economists as valid? A. Need to keep money at home. B. Encouragement of capital accumulation. C. Protection of an infant industry. D. Conservation of natural resources. E. Maintenance of employment and reduction of unemployment. Full file at https://TestBanksC 2-16 © 2013 by McGraw-Hill Education. This is proprietary mat