BUSM Supply Chain Fnl Verified Exam Questions and Answers Latest
update 2026/2027
Question:
1. Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than
most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):
total advantage advantageous competency absolute advantage core strength comparative advantage
Answer:
comparative advantage
Question:
2. Refer to the video: Globalization explained Which products are being produced by Profi-TV and
Supercolor? Art supplies Televisions Wall paint Cylons and Centurions None of the above
Answer:
Televisions
Question:
3. A natural barrier that faces Argentina when it sells beef to Siberia is:
custom regulations exchange controls government controls distance taxes
Answer:
distance
Question:
4. Currency markets operate under a system called This means that prices of currencies vary based
upon demand and supply of that currency. variable trade
variable costs international trade rate floating exchange rate breakeven point
Answer:
. floating exchange rate
Question:
5. When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to
expand its product line and the market for its existing consumer products, it was an example of a(n):
direct foreign investment limited partnership international corporation international cooperative
cooperative cartel
Answer:
direct foreign investment
,Question:
6. In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is
the world's largest producer of the fruit. This prohibition remained in effect until 1996. The ban on
importing Mexican avocados is an example of a(n):
import quota embargo restrictive limit boycott tariff
Answer:
embargo
Question:
7. are laws that require a company earning foreign Exchange controls currency from its exports to sell
the foreign currency to a control agency, usually a central bank. Currency policies Rates of exchange
Laws of balanced exchange
Favorable exchange regulations Exchange controls
Answer:
Question:
8. The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is
popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be
grown in Central Asia, this region can be said to have a(n):
absolute advantage advantageous distinction comparative advantage total advantage economy of scale
Answer:
absolute advantage
Question:
9. The is an agreement that dramatically lowered trade barriers worldwide and created the new World
Trade Organization (WTO). Uruguay Round North American Free Trade Agreement Maastricht
Treaty Mercosur International Monetary Fund
Answer:
Uruguay Round
Question:
10. An enterprise in which two or more firms or investors joint venture (including governments) share
ownership of a business and its property rights is called a(n):
cooperative international partnership joint venture cartel limited partnership
Answer:
Question:
11.
In 1998, the Canadian Magazine Publisher's Association (CMPA) predicted the demise of many
, Canadian magazines because the World Trade Organization (WTO) made it legal for U.S. publishers
to introduce product into the Canadian market, without incurring the start-up costs involved in
launching a new magazine. By using split-run magazines (modifying the U.S. edition so they contain
Canadian ads), U.S. magazine publishers could offer lower rates to advertiser and sell the magazines
for less money than Canadian publishers could. According to the CMPA, the U.S. magazine
publishers would be engaged in:
export pricing dumping unloading dunking add-on pricing
Answer:
dumping
Question:
12. Since the balance of payments is the summary of a country's financial transactions with another
country, a discussion of a nation's balance of payments will need to include a discussion of:
its imports and exports its long-term overseas business investments its government loans its gifts and
foreign aid all of the above
Answer:
all of the above
Question:
13. A recent regulation enacted by the Commission for Protective Trade Measures in Russia limits the
amount of poultry meat that can be brought into the country and sold in the country each year to 1.05
billion tons.
Russia is using a(n) to protect its domestic poultry industry. embargo boycott tariff restrictive limit
import quota
Answer:
import quota
Question:
14. apan bans importation of rice to protect its domestic rice industry. This ban is an example of:
free trade ethnocentricity dumping countertrading protectionism
Answer:
protectionism
Question:
15. The original purpose of the frastructure in developing countries and to help relief the debt burden
of these countries. Federal Reserve Bank Central Bank World Bank International Funding Bank
International Monetary Fund
Answer:
was to help build in- World Bank
update 2026/2027
Question:
1. Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than
most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):
total advantage advantageous competency absolute advantage core strength comparative advantage
Answer:
comparative advantage
Question:
2. Refer to the video: Globalization explained Which products are being produced by Profi-TV and
Supercolor? Art supplies Televisions Wall paint Cylons and Centurions None of the above
Answer:
Televisions
Question:
3. A natural barrier that faces Argentina when it sells beef to Siberia is:
custom regulations exchange controls government controls distance taxes
Answer:
distance
Question:
4. Currency markets operate under a system called This means that prices of currencies vary based
upon demand and supply of that currency. variable trade
variable costs international trade rate floating exchange rate breakeven point
Answer:
. floating exchange rate
Question:
5. When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to
expand its product line and the market for its existing consumer products, it was an example of a(n):
direct foreign investment limited partnership international corporation international cooperative
cooperative cartel
Answer:
direct foreign investment
,Question:
6. In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is
the world's largest producer of the fruit. This prohibition remained in effect until 1996. The ban on
importing Mexican avocados is an example of a(n):
import quota embargo restrictive limit boycott tariff
Answer:
embargo
Question:
7. are laws that require a company earning foreign Exchange controls currency from its exports to sell
the foreign currency to a control agency, usually a central bank. Currency policies Rates of exchange
Laws of balanced exchange
Favorable exchange regulations Exchange controls
Answer:
Question:
8. The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is
popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be
grown in Central Asia, this region can be said to have a(n):
absolute advantage advantageous distinction comparative advantage total advantage economy of scale
Answer:
absolute advantage
Question:
9. The is an agreement that dramatically lowered trade barriers worldwide and created the new World
Trade Organization (WTO). Uruguay Round North American Free Trade Agreement Maastricht
Treaty Mercosur International Monetary Fund
Answer:
Uruguay Round
Question:
10. An enterprise in which two or more firms or investors joint venture (including governments) share
ownership of a business and its property rights is called a(n):
cooperative international partnership joint venture cartel limited partnership
Answer:
Question:
11.
In 1998, the Canadian Magazine Publisher's Association (CMPA) predicted the demise of many
, Canadian magazines because the World Trade Organization (WTO) made it legal for U.S. publishers
to introduce product into the Canadian market, without incurring the start-up costs involved in
launching a new magazine. By using split-run magazines (modifying the U.S. edition so they contain
Canadian ads), U.S. magazine publishers could offer lower rates to advertiser and sell the magazines
for less money than Canadian publishers could. According to the CMPA, the U.S. magazine
publishers would be engaged in:
export pricing dumping unloading dunking add-on pricing
Answer:
dumping
Question:
12. Since the balance of payments is the summary of a country's financial transactions with another
country, a discussion of a nation's balance of payments will need to include a discussion of:
its imports and exports its long-term overseas business investments its government loans its gifts and
foreign aid all of the above
Answer:
all of the above
Question:
13. A recent regulation enacted by the Commission for Protective Trade Measures in Russia limits the
amount of poultry meat that can be brought into the country and sold in the country each year to 1.05
billion tons.
Russia is using a(n) to protect its domestic poultry industry. embargo boycott tariff restrictive limit
import quota
Answer:
import quota
Question:
14. apan bans importation of rice to protect its domestic rice industry. This ban is an example of:
free trade ethnocentricity dumping countertrading protectionism
Answer:
protectionism
Question:
15. The original purpose of the frastructure in developing countries and to help relief the debt burden
of these countries. Federal Reserve Bank Central Bank World Bank International Funding Bank
International Monetary Fund
Answer:
was to help build in- World Bank
