International Business and Trade Midterms
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Questions and Answers

What is the primary function of the World Trade Organization?

  • To promote global monetary cooperation
  • To ensure that trade flows as smoothly, predictably and freely as possible (correct)
  • To foster global sustainable development
  • To provide a forum for its member countries to express their views on global issues

    • What is the main purpose of the International Monetary Fund?

  • To foster global monetary cooperation and ensure financial stability (correct)
  • To promote regional integration among neighboring countries
  • To provide a forum for countries to address global issues
  • To facilitate international trade by eliminating trade barriers

    • What is the Global Capital Market?

  • A forum for countries to discuss global economic issues
  • A global financial institution that regulates international trade
  • An interlinking of various investment exchanges around the world (correct)
  • An international organization that promotes regional integration

    • What is the main goal of regional integration?

    <p>To upgrade cooperation through common institutions and rules among neighboring countries</p> Signup and view all the answers

    What is the United Nations' primary mission?

    <p>To provide a forum for its member countries to express their views and take action on major global issues</p> Signup and view all the answers

    How many member countries does the International Monetary Fund have?

    <p>190</p> Signup and view all the answers

    What is an International Licensing Agreement?

    <p>A contract between two parties from different countries, where one party grants the other party the right to use a product, technology, or intellectual property</p> Signup and view all the answers

    What is the main goal of a free trade area?

    <p>To promote economies of scale and comparative advantages</p> Signup and view all the answers

    What is indirect exporting?

    <p>A business sells its products to foreign customers through middlemen or intermediaries</p> Signup and view all the answers

    What is a customs union?

    <p>A type of free trade area with common external tariffs</p> Signup and view all the answers

    What is indirect importing?

    <p>A business purchases goods from foreign suppliers through intermediaries</p> Signup and view all the answers

    What is the purpose of setting common external tariffs in a customs union?

    <p>To level the competitive playing field and address re-exports</p> Signup and view all the answers

    What does international business refer to?

    <p>Any commercial activities or transactions that involve the movement of goods, services, resources, capital, people, or intellectual property across national borders</p> Signup and view all the answers

    What is the main difference between international trade and foreign direct investment?

    <p>International trade involves goods and services, while foreign direct investment involves the acquisition of foreign assets</p> Signup and view all the answers

    What is culture?

    <p>The beliefs, values, mind-sets, and practices of a group of people</p> Signup and view all the answers

    What is economic globalization?

    <p>The widespread international movement of goods, capital, services, technology, and information</p> Signup and view all the answers

    What is the main characteristic of international trade?

    <p>Involves the exchange of goods and services across international borders</p> Signup and view all the answers

    What is the main characteristic of globalization?

    <p>The widespread international movement of goods, capital, services, technology, and information</p> Signup and view all the answers

    What is the primary purpose of Voluntary Export Restraints (VERs)?

    <p>To limit the quantity of exports during a specified period</p> Signup and view all the answers

    What type of barrier aims to limit imports through legal restrictions?

    <p>Regulatory Barrier</p> Signup and view all the answers

    What is applied when an exporting producer sells goods below cost, harming domestic industries?

    <p>Anti-Dumping Duty</p> Signup and view all the answers

    What type of foreign aid provides financial assistance to domestic industries?

    <p>Subsidy</p> Signup and view all the answers

    What type of aid aims to promote economic growth and development in recipient countries?

    <p>Economic Aid</p> Signup and view all the answers

    What is a key feature of a common market?

    <p>Free movement of services and capital within member countries</p> Signup and view all the answers

    What type of aid provides humanitarian relief following natural disasters or during emergencies?

    <p>Humanitarian Aid</p> Signup and view all the answers

    What is the primary goal of tariffs?

    <p>To protect domestic industries from foreign competition</p> Signup and view all the answers

    What is an example of an economic union?

    <p>The European Union (Euro)</p> Signup and view all the answers

    What is the outcome of quotas on imported goods?

    <p>Higher prices for consumers</p> Signup and view all the answers

    What is a characteristic of a political union?

    <p>A common government with reduced national sovereignty</p> Signup and view all the answers

    What is the purpose of harmonization of monetary and fiscal policies?

    <p>To imply a level of political integration</p> Signup and view all the answers

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