BUS 280 MIDTERM ACTUAL EXAM QUESTIONS WITH
SOLUTIONS 2025 GRADED A+
✔✔The condition that results when the value of a nation's exports is greater than the
value of its imports is called - ✔✔trade surplus
✔✔According to mercantilism, the accumulation of national wealth depended on the
________. - ✔✔increase in a nation's trade surplus
✔✔Which of the following is prompting farmers in many developed nations to discover
new ways to manage risk and increase agricultural efficiency? - ✔✔exposure of
agribusiness to market forces
✔✔Governments of most nations have special agencies responsible for promoting
exports. Which of the following is NOT a type of export promotion? - ✔✔Paying Import
Duties
✔✔Which U.S. financing entity finances the export activities of companies in the United
States and offers insurance on foreign accounts receivable? - ✔✔Export-Import Bank
✔✔The General Agreement on Trade in Services (GATS) created during the Uruguay
Round identifies four different forms that international trade in services can take. Which
of the following is NOT one of those forms? - ✔✔Agriculture Subsidy
✔✔The United States has banned all trade and investment with Cuba since 1962. This
is an example of which type of government political intervention? - ✔✔Gaining Influence
✔✔Tariffs that are called specific tariffs are levied based on - ✔✔A specific fee for each
unit (measured by number, weight, etc.) of an imported product
✔✔. For which of the following political motives do governments intervene in trade in
order to ban certain defense-related goods from export to other nations? - ✔✔Preserve
national security
✔✔All of the following are political motives behind government intervention in trade
EXCEPT ________. - ✔✔Pursuing strategic trade policy
✔✔One of the most common instruments that government uses to promote trade with
other nations is the establishment of a foreign trade zone. Which of the following is not
an advantage of a free trade zone? - ✔✔Increase government revenue by applying
additional import tariff.
, ✔✔Which of the following describes administrative delays? - ✔✔Compound tariffs
levied on an imported product
✔✔The creation of the ________ was perhaps the greatest achievement of the 1986
Uruguay Round. - ✔✔World Trade Organization
✔✔Which of the following has eliminated all tariffs and nontariff trade barriers on goods
originating within North America? - ✔✔NAFTA
✔✔In 1980, the closing of U.S. carmakers' production facilities in the United States was
creating a volatile anti-Japan sentiment among the population and the U.S. Congress.
Fearing punitive legislation, the Japanese government and its carmakers decide to limit
its automobile exports to the United States. Which of the following is this an example
of? - ✔✔Voluntary Export Restraints (VER)
✔✔Export tariff is levied mostly by the government of a country that is ________. -
✔✔Exporting products that consist mostly of low-priced natural resources
✔✔A government may impose an import quota to protect its domestic producers by
placing a limit on the amount of goods allowed to enter the country. Who are the
winners of imposing such quotas? - ✔✔domestic producers
✔✔Which major region of the world's economy represents the highest intraregional
exports? - ✔✔European region
✔✔The practice of mercantilism rested on three essential pillars. Which of the following
are these three pillars? - ✔✔Trade Surplus, Government Intervention, Colonialism
✔✔Which of the following statements BEST explains the benefits of international trade
to nations - ✔✔International trade is an important engine for job creation.
✔✔Trade in services accounts for around 20 percent of total world trade. Although the
importance of trade in services is growing for many nations, it tends to be relatively
more important for the world's ___________ countries. - ✔✔richest
✔✔Which of the following represents the core of the national competitive advantage
theory? - ✔✔a nation's competitiveness in an industry depends on the capacity of the
industry to innovate and upgrade
✔✔The main problem with mercantilism is that it views trade as a(n) ________. -
✔✔zero-sum game
SOLUTIONS 2025 GRADED A+
✔✔The condition that results when the value of a nation's exports is greater than the
value of its imports is called - ✔✔trade surplus
✔✔According to mercantilism, the accumulation of national wealth depended on the
________. - ✔✔increase in a nation's trade surplus
✔✔Which of the following is prompting farmers in many developed nations to discover
new ways to manage risk and increase agricultural efficiency? - ✔✔exposure of
agribusiness to market forces
✔✔Governments of most nations have special agencies responsible for promoting
exports. Which of the following is NOT a type of export promotion? - ✔✔Paying Import
Duties
✔✔Which U.S. financing entity finances the export activities of companies in the United
States and offers insurance on foreign accounts receivable? - ✔✔Export-Import Bank
✔✔The General Agreement on Trade in Services (GATS) created during the Uruguay
Round identifies four different forms that international trade in services can take. Which
of the following is NOT one of those forms? - ✔✔Agriculture Subsidy
✔✔The United States has banned all trade and investment with Cuba since 1962. This
is an example of which type of government political intervention? - ✔✔Gaining Influence
✔✔Tariffs that are called specific tariffs are levied based on - ✔✔A specific fee for each
unit (measured by number, weight, etc.) of an imported product
✔✔. For which of the following political motives do governments intervene in trade in
order to ban certain defense-related goods from export to other nations? - ✔✔Preserve
national security
✔✔All of the following are political motives behind government intervention in trade
EXCEPT ________. - ✔✔Pursuing strategic trade policy
✔✔One of the most common instruments that government uses to promote trade with
other nations is the establishment of a foreign trade zone. Which of the following is not
an advantage of a free trade zone? - ✔✔Increase government revenue by applying
additional import tariff.
, ✔✔Which of the following describes administrative delays? - ✔✔Compound tariffs
levied on an imported product
✔✔The creation of the ________ was perhaps the greatest achievement of the 1986
Uruguay Round. - ✔✔World Trade Organization
✔✔Which of the following has eliminated all tariffs and nontariff trade barriers on goods
originating within North America? - ✔✔NAFTA
✔✔In 1980, the closing of U.S. carmakers' production facilities in the United States was
creating a volatile anti-Japan sentiment among the population and the U.S. Congress.
Fearing punitive legislation, the Japanese government and its carmakers decide to limit
its automobile exports to the United States. Which of the following is this an example
of? - ✔✔Voluntary Export Restraints (VER)
✔✔Export tariff is levied mostly by the government of a country that is ________. -
✔✔Exporting products that consist mostly of low-priced natural resources
✔✔A government may impose an import quota to protect its domestic producers by
placing a limit on the amount of goods allowed to enter the country. Who are the
winners of imposing such quotas? - ✔✔domestic producers
✔✔Which major region of the world's economy represents the highest intraregional
exports? - ✔✔European region
✔✔The practice of mercantilism rested on three essential pillars. Which of the following
are these three pillars? - ✔✔Trade Surplus, Government Intervention, Colonialism
✔✔Which of the following statements BEST explains the benefits of international trade
to nations - ✔✔International trade is an important engine for job creation.
✔✔Trade in services accounts for around 20 percent of total world trade. Although the
importance of trade in services is growing for many nations, it tends to be relatively
more important for the world's ___________ countries. - ✔✔richest
✔✔Which of the following represents the core of the national competitive advantage
theory? - ✔✔a nation's competitiveness in an industry depends on the capacity of the
industry to innovate and upgrade
✔✔The main problem with mercantilism is that it views trade as a(n) ________. -
✔✔zero-sum game
