BUS 420 Chapter 6 International Trade And
Investment MCQ Exam Study Guide
A - ANSWER 1) The center of the international commercial flower industry is ________. A)
The Netherlands B) The United States C) France D) Germany
C - ANSWER 2) The term ________ refers to the voluntary exchange of goods, services,
assets, or money between one person or organization and another. A) sales B)
transaction C) trade D) strategic management
D - ANSWER 3) Since World War II, world trade has ________. A) grown slightly B) shrunk
slightly C) shrunk significantly D) grown dramatically
B - ANSWER 4) In 2012, total international merchandise trade accounted for about
________ percent of the world's GDP. A) 12 B) 26 C) 44 D) 59
A - ANSWER 5) In 2012, China accounted for approximately ________ of the world's
merchandise exports. A) 10% B) 25% C) 40% D) 55%
B - ANSWER 6) Ellis, a manager at an MNE, is studying international trade theories. In his
current position, Ellis would most likely use this knowledge to ________. A) lobby for trade
policy changes B) identify promising export and investment opportunities C) predict
factors that motivate trade D) analyze foreign exchange markets
, A - ANSWER 7) During which century were the first theories of international trade
developed? A) sixteenth B) seventeenth C) eighteenth D) nineteenth
A - ANSWER 8) The first theories of international trade used ________ as a unit of analysis.
A) individual countries B) country clusters C) regions D) continents
C - ANSWER 9) What type of trade were the early country-based theories of international
trade most useful in understanding? A) services B) brand name goods C) commodities D)
high-tech goods
A - ANSWER 10) The theory of ________ maintains that a country's wealth is measured by
its holdings of gold and silver. A) mercantilism B) neomercantilism C) competitive
advantage D) comparative advantage
C - ANSWER 11) According to mercantilism, what should a country's primary goal be? A)
protecting citizens from unfair labor practices B) encouraging imports to prevent
resource depletion C) promoting exports to enlarge gold and silver holdings D) ensuring
sufficient labor for low-wage jobs in the textile industry
C - ANSWER 12) Which of the following was harmed the most by mercantilist policies? A)
monarchs B) local politicians C) individual consumers D) domestic manufacturers
A - ANSWER 13) In the U.S., sugar growers, steel companies, and the AFL-CIO are
supporters of mercantilist policies. These groups are best characterized as ________. A)
protectionists B) communists C) isolationists D) federalists
Investment MCQ Exam Study Guide
A - ANSWER 1) The center of the international commercial flower industry is ________. A)
The Netherlands B) The United States C) France D) Germany
C - ANSWER 2) The term ________ refers to the voluntary exchange of goods, services,
assets, or money between one person or organization and another. A) sales B)
transaction C) trade D) strategic management
D - ANSWER 3) Since World War II, world trade has ________. A) grown slightly B) shrunk
slightly C) shrunk significantly D) grown dramatically
B - ANSWER 4) In 2012, total international merchandise trade accounted for about
________ percent of the world's GDP. A) 12 B) 26 C) 44 D) 59
A - ANSWER 5) In 2012, China accounted for approximately ________ of the world's
merchandise exports. A) 10% B) 25% C) 40% D) 55%
B - ANSWER 6) Ellis, a manager at an MNE, is studying international trade theories. In his
current position, Ellis would most likely use this knowledge to ________. A) lobby for trade
policy changes B) identify promising export and investment opportunities C) predict
factors that motivate trade D) analyze foreign exchange markets
, A - ANSWER 7) During which century were the first theories of international trade
developed? A) sixteenth B) seventeenth C) eighteenth D) nineteenth
A - ANSWER 8) The first theories of international trade used ________ as a unit of analysis.
A) individual countries B) country clusters C) regions D) continents
C - ANSWER 9) What type of trade were the early country-based theories of international
trade most useful in understanding? A) services B) brand name goods C) commodities D)
high-tech goods
A - ANSWER 10) The theory of ________ maintains that a country's wealth is measured by
its holdings of gold and silver. A) mercantilism B) neomercantilism C) competitive
advantage D) comparative advantage
C - ANSWER 11) According to mercantilism, what should a country's primary goal be? A)
protecting citizens from unfair labor practices B) encouraging imports to prevent
resource depletion C) promoting exports to enlarge gold and silver holdings D) ensuring
sufficient labor for low-wage jobs in the textile industry
C - ANSWER 12) Which of the following was harmed the most by mercantilist policies? A)
monarchs B) local politicians C) individual consumers D) domestic manufacturers
A - ANSWER 13) In the U.S., sugar growers, steel companies, and the AFL-CIO are
supporters of mercantilist policies. These groups are best characterized as ________. A)
protectionists B) communists C) isolationists D) federalists
