International Business Global
Commerce Exam Questions with
Complete Solutions
What type of competition has many companies offering essentially the same basic
product but with some differentiation; for example, a brand name difference? -
ANSWER-monopolistic competition
The United States has produced more than 1 billion tons of coal annually. Although
there are over 850 coal mines in the United States, each produces essentially the
same product, and none of the mines has control over the price of the goal. What
type of competitive situation does this reflect? - ANSWER-pure competition
List the four types of competitive situations from the lowest degree of competition to
the highest. - ANSWER-monopoly, oligopoly, monopolistic competition, pure
competition
A nation is said to have an unfavorable balance of trade when which one of the
following occurs? - ANSWER-NOT The value of its imports exceeds the value of its
exports.
What is the name of the trade agreement that replaced NAFTA? - ANSWER-USMCA
The United States has historically imported more goods and services than it exports.
What is the result of this discrepancy between imports and exports? - ANSWER-
trade deficit
In 2019, international tourists in the United States spent a total of $155 billion. Which
of the following measures of economic growth would be affected by this
expenditure? - ANSWER-balance of payments
If a US company accepts a product from a foreign manufacturer and labels the
product without verifying its contents, which agency will likely sanction the company?
- ANSWER-Federal Trade Commission
Customs officials sell imported products in government-owned operations. -
ANSWER-False
How can a company achieve a competitive advantage? - ANSWER-By producing
comparable products less expensively than its rivals.
As of 2020, how many countries are members of the World Trade Organization
(WTO)? - ANSWER-NOT 150
, Dialysis clinics bring in about $25 billion per year in revenue, and two companies
control 92 percent of that market. What type of competitive situation does this
represent? - ANSWER-oligopoly
In 2019, Brazil exported $224 billion in products and imported $177 billion in
products. What is this discrepancy between exports and imports called? - ANSWER-
NOT favorable balance of payments
Which court settles disputes between nations upon their request and also advises
the United Nations on matters of international law? - ANSWER-International Court of
Justice
A contract is unenforceable if the terms of the contract call for an action that is
against the law. - ANSWER-True
In what type of legal system are judges obliged to make their rulings consistent with
previous judicial decisions on the same subject? - ANSWER-common law
What area of law protects the sale of a home? - ANSWER-contract law
A neighbor hires his son's friend to mow his grass once a week. His son's friend is
14 years old. This implied contract would be deemed invalid because it did not meet
which component of a valid contract? - ANSWER-capacity
Peter's Motorworks, an Iowa-based car repair business, brought a claim against a
customer for non-payment of a repair bill. The customer brought a counterclaim for
damages for defective workmanship. They decide to consult an individual who will
assist them, make suggestions, and guide them toward their own resolution. What
method of dispute resolution has been chosen to help reach a resolution? -
ANSWER-mediation
The Apple logo is covered by which legal protection? - ANSWER-trademark
What type of liability exists when a defendant is liable for committing an action,
regardless of what their intent was when committing the action? - ANSWER-strict
liability
What type of legal system is based on decisions made in prior cases? - ANSWER-
common law
If a person makes duplicate copies of a DVD of a commercial movie and then sells it,
what would they be violating? - ANSWER-copyright
What type of settlement dispute does NOT require the agreement of both parties? -
ANSWER-arbitration and litigation
What type of patent is granted to an inventor who invents a new, original, and
ornamental design for an article of manufacture? - ANSWER-design patent
Commerce Exam Questions with
Complete Solutions
What type of competition has many companies offering essentially the same basic
product but with some differentiation; for example, a brand name difference? -
ANSWER-monopolistic competition
The United States has produced more than 1 billion tons of coal annually. Although
there are over 850 coal mines in the United States, each produces essentially the
same product, and none of the mines has control over the price of the goal. What
type of competitive situation does this reflect? - ANSWER-pure competition
List the four types of competitive situations from the lowest degree of competition to
the highest. - ANSWER-monopoly, oligopoly, monopolistic competition, pure
competition
A nation is said to have an unfavorable balance of trade when which one of the
following occurs? - ANSWER-NOT The value of its imports exceeds the value of its
exports.
What is the name of the trade agreement that replaced NAFTA? - ANSWER-USMCA
The United States has historically imported more goods and services than it exports.
What is the result of this discrepancy between imports and exports? - ANSWER-
trade deficit
In 2019, international tourists in the United States spent a total of $155 billion. Which
of the following measures of economic growth would be affected by this
expenditure? - ANSWER-balance of payments
If a US company accepts a product from a foreign manufacturer and labels the
product without verifying its contents, which agency will likely sanction the company?
- ANSWER-Federal Trade Commission
Customs officials sell imported products in government-owned operations. -
ANSWER-False
How can a company achieve a competitive advantage? - ANSWER-By producing
comparable products less expensively than its rivals.
As of 2020, how many countries are members of the World Trade Organization
(WTO)? - ANSWER-NOT 150
, Dialysis clinics bring in about $25 billion per year in revenue, and two companies
control 92 percent of that market. What type of competitive situation does this
represent? - ANSWER-oligopoly
In 2019, Brazil exported $224 billion in products and imported $177 billion in
products. What is this discrepancy between exports and imports called? - ANSWER-
NOT favorable balance of payments
Which court settles disputes between nations upon their request and also advises
the United Nations on matters of international law? - ANSWER-International Court of
Justice
A contract is unenforceable if the terms of the contract call for an action that is
against the law. - ANSWER-True
In what type of legal system are judges obliged to make their rulings consistent with
previous judicial decisions on the same subject? - ANSWER-common law
What area of law protects the sale of a home? - ANSWER-contract law
A neighbor hires his son's friend to mow his grass once a week. His son's friend is
14 years old. This implied contract would be deemed invalid because it did not meet
which component of a valid contract? - ANSWER-capacity
Peter's Motorworks, an Iowa-based car repair business, brought a claim against a
customer for non-payment of a repair bill. The customer brought a counterclaim for
damages for defective workmanship. They decide to consult an individual who will
assist them, make suggestions, and guide them toward their own resolution. What
method of dispute resolution has been chosen to help reach a resolution? -
ANSWER-mediation
The Apple logo is covered by which legal protection? - ANSWER-trademark
What type of liability exists when a defendant is liable for committing an action,
regardless of what their intent was when committing the action? - ANSWER-strict
liability
What type of legal system is based on decisions made in prior cases? - ANSWER-
common law
If a person makes duplicate copies of a DVD of a commercial movie and then sells it,
what would they be violating? - ANSWER-copyright
What type of settlement dispute does NOT require the agreement of both parties? -
ANSWER-arbitration and litigation
What type of patent is granted to an inventor who invents a new, original, and
ornamental design for an article of manufacture? - ANSWER-design patent
