BUS 100 Final Exam with Verified
Answers
(True/False) An import is a product made or grown abroad but sold domestically? - ✔✔True
(True/False) The World Trade Organization (WTO) was created to encourage international
trade. - ✔✔True
(True/False) Globalization refers to the process by which countries around the world are
becoming more self-sufficient. - ✔✔False
(True/False) NAFTA regulates trade between the United States, Europe, and Japan. - ✔✔False
(True/False) The primary purpose of the World Trade Organization is to impose tariffs on
imported products. - ✔✔False
Which organization created the classification of countries based on per capita income?
A) the World Bank
B) the World Trade Organization
C) the International Monetary Fund
D) the European Union
E) the North American Free Trade Agreement - ✔✔A
Which of the following countries is the world's third largest economy, behind that of the United
States and European Union?
A) China
B) India
C) Brazil
,D) Japan
E) Russia - ✔✔A
Under which of the following treaties are Canada, the United States, and Mexico gradually
eliminating tariffs and all other trade barriers?
A) the EURO Agreement
B) the Pan-American Agreement
C) the North American Free Trade Agreement
D) the General Agreement on Tariffs and Trade
E) the G-3 Free Trade Agreement - ✔✔C
What organization was founded in Pacific Asia in 1967 for economic, political, social, and
cultural cooperation?
A) SEATO
B) ASEAN
C) CENTO
D) OAS
E) WTO - ✔✔B
Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?
A) United Nations Development Assistant Plan
B) Fair Labor Standards Act
C) General Agreement on Tariffs and Trade
D) General Agreement on Trade in Services
E) European Union Stability and Growth Pact - ✔✔C
What are products that are created domestically and transported for sale abroad?
A) dumped goods
,B) exports
C) imports
D) buy backs
E) domestic goods - ✔✔B
What are products that are created abroad and then transported and sold domestically?
A) dumped goods
B) exports
C) imports
D) buy backs
E) domestic goods - ✔✔C
(True/False) If the United States exports more to the Netherlands than it imports from the
Netherlands, the United States has a trade deficit with the Netherlands. - ✔✔False
(True/False) The United States has large trade deficits with Japan, China, and Mexico; this
means that the United States has imported more from them than what they have purchased
from us. - ✔✔True
Which of the following is the name for the economic value of all of the products that a country
exports minus the economic value of its imports?
A) balance of foreign competition
B) balance of domestic competition
C) balance of trade
D) balance of payments
E) balance of supply and demand - ✔✔C
Which of the following BEST describes a positive trade balance?
, A) the economic condition in which a country's exports exceed its imports
B) the economic condition in which a country's imports exceed its exports
C) the economic condition in which a country's inflow of money exceeds its outflow
D) the economic condition in which a country's outflow of money exceeds its inflow
E) the economic condition in which a country's natural resources exceed its human resources -
✔✔A
Which of the following refers to the situation when a country's imports exceed its exports?
A) balance of payments
B) balance of trade
C) trade deficit
D) trade surplus
E) trade advantage - ✔✔C
(True/False) Transportation costs have relatively little impact on a domestic firm's decision to
go international, compared to other possible factors. - ✔✔False
True/False. International firms conduct a good deal of their business abroad and may even
maintain overseas manufacturing facilities. - ✔✔True
Which of the following organizations is a firm that makes products in one country and then
distributes and sells them in others?
A) importer
B) exporter
C) multinational firm
D) international firm
E) direct foreign investor - ✔✔B
Answers
(True/False) An import is a product made or grown abroad but sold domestically? - ✔✔True
(True/False) The World Trade Organization (WTO) was created to encourage international
trade. - ✔✔True
(True/False) Globalization refers to the process by which countries around the world are
becoming more self-sufficient. - ✔✔False
(True/False) NAFTA regulates trade between the United States, Europe, and Japan. - ✔✔False
(True/False) The primary purpose of the World Trade Organization is to impose tariffs on
imported products. - ✔✔False
Which organization created the classification of countries based on per capita income?
A) the World Bank
B) the World Trade Organization
C) the International Monetary Fund
D) the European Union
E) the North American Free Trade Agreement - ✔✔A
Which of the following countries is the world's third largest economy, behind that of the United
States and European Union?
A) China
B) India
C) Brazil
,D) Japan
E) Russia - ✔✔A
Under which of the following treaties are Canada, the United States, and Mexico gradually
eliminating tariffs and all other trade barriers?
A) the EURO Agreement
B) the Pan-American Agreement
C) the North American Free Trade Agreement
D) the General Agreement on Tariffs and Trade
E) the G-3 Free Trade Agreement - ✔✔C
What organization was founded in Pacific Asia in 1967 for economic, political, social, and
cultural cooperation?
A) SEATO
B) ASEAN
C) CENTO
D) OAS
E) WTO - ✔✔B
Which of the following treaties sought to eliminate trade barriers such as tariffs and quotas?
A) United Nations Development Assistant Plan
B) Fair Labor Standards Act
C) General Agreement on Tariffs and Trade
D) General Agreement on Trade in Services
E) European Union Stability and Growth Pact - ✔✔C
What are products that are created domestically and transported for sale abroad?
A) dumped goods
,B) exports
C) imports
D) buy backs
E) domestic goods - ✔✔B
What are products that are created abroad and then transported and sold domestically?
A) dumped goods
B) exports
C) imports
D) buy backs
E) domestic goods - ✔✔C
(True/False) If the United States exports more to the Netherlands than it imports from the
Netherlands, the United States has a trade deficit with the Netherlands. - ✔✔False
(True/False) The United States has large trade deficits with Japan, China, and Mexico; this
means that the United States has imported more from them than what they have purchased
from us. - ✔✔True
Which of the following is the name for the economic value of all of the products that a country
exports minus the economic value of its imports?
A) balance of foreign competition
B) balance of domestic competition
C) balance of trade
D) balance of payments
E) balance of supply and demand - ✔✔C
Which of the following BEST describes a positive trade balance?
, A) the economic condition in which a country's exports exceed its imports
B) the economic condition in which a country's imports exceed its exports
C) the economic condition in which a country's inflow of money exceeds its outflow
D) the economic condition in which a country's outflow of money exceeds its inflow
E) the economic condition in which a country's natural resources exceed its human resources -
✔✔A
Which of the following refers to the situation when a country's imports exceed its exports?
A) balance of payments
B) balance of trade
C) trade deficit
D) trade surplus
E) trade advantage - ✔✔C
(True/False) Transportation costs have relatively little impact on a domestic firm's decision to
go international, compared to other possible factors. - ✔✔False
True/False. International firms conduct a good deal of their business abroad and may even
maintain overseas manufacturing facilities. - ✔✔True
Which of the following organizations is a firm that makes products in one country and then
distributes and sells them in others?
A) importer
B) exporter
C) multinational firm
D) international firm
E) direct foreign investor - ✔✔B
