BUSI 303 Quiz 2

Liberty BUSI 303 Quiz 2 Answers

Set 1

  1. Socialism is the economic policy of restraining trade between nations.
  2. Global business risk is any worldwide factor—outside the laws of supply and demand— that could impact the success or failure of any venture moving into the international arena.
  3. Which of the following is NOT a way that Governments promote trade?
  4. The WTO encourages nations to practice the Golden Rule on a national level, pointing out that foreigners and foreign industries should be treated just like the locals and domestic industries.
  5. Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.
  6. The Organization for Economic Cooperation and Development (OECD), the World Trade Organization, the World Bank, and the International Monetary Fund have all indicated that unstable political systems are the greatest single barrier to economic development worldwide.
  7. Ownership in foreign entities can be a complete or a controlling stake in the form of either a joint venture or through stock purchases and acquisitions of existing corporations.
  8. Which of the following places power in the hands of customs officials?
  9. A market economy most often refers to an economic system that is under comprehensive control and regulation by a government, in accordance with the plan of economic development.
  10. Nations can benefit from trade even when one trading partner does not have an absolute advantage on any of the products being traded.
  11. The General Agreement on Tariffs and Trade (GATT) was signed on January 1, 1948
  12. Operations of production are moved to a less‐developed nation and the cycle is complete as highly‐developed nations become importers of this product.
  13. are special privileges offered by the government in order to attract businesses to a region or to provide them with the funding to operate successfully.
  14. Which of the following are types of risk companies are exposed to in international transactions?
  15. imposes a waiting period between the determination of a product’s quality and the determination of when it can actually be sold in a market
  16. Governments play a major role in support of technology by crafting industry‐specific measures, such as tax credits for research and development of new technologies and trade policies that support essential technology sectors.
  17. Attempts to explain that nations will produce and export goods that use the highest proportion of those factors of production that are most abundant to a nation.
  18. When considering FDI, the most important consideration facing a corporation is the type of ________ and ________ the investing corporation will have over the foreign entity.
  19. Which of the following is NOT a strategic goal of FDI?
  20. The three types of global business risk include ownership risk, operational risk, and transfer risk.
  21. Match the following
  • Transfer Risk
  • Big Mac Index
  • Developing Nation
  • Administrative Delays
  • Gross domestic Product (GDP)
  • Buyer’s Credit
  • Protectionism
  • Theocratic Law
  • Supplier’s Credit
  • Industrial Property
  • Factor Conditions
  • Exports‑Imports
  • Eli Heckscher & Bertil
  • Adam Smith
  • Opportunity cost
  • Capital Account
  • David Ricardo
  • Paul Krugman
  • Balance of Payment
  • General Agreement on Tariffs and Trade

Set 2

  1. Attempts to explain that nations will produce and export goods that use the highest proportion of those factors of production that are most abundant to a nation.
  2. Political issues that significantly impact global business include
  3. Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.
  4. All of the following are factors that can affect the international BOP and either create or reduce surpluses and deficits except
  5. Operation risk occurs when debtors in a country are unable to ensure timely payments of foreign currency debt service because of either transfer or exchange restrictions or a general lack of foreign currency.
  6. Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.
  7. As organizations become more involved in the global community, they may opt to purchase land or other resources in other nations. This activity, known as foreign direct investment (FDI), is commonly used to purchase real estate and existing properties.
  8. Which of the following is NOT a purpose behind embargoes?
  9. The Balance of Payments
  10. Which of the following is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals and can be motivated by political, economic, or moral reasons?
  11. imposes a waiting period between the determination of a product’s quality and the determination of when it can actually be sold in a market
  12. Which of the following places power in the hands of customs officials?
  13. The two ways companies can engage in FDI include
  14. Socialism is the economic policy of restraining trade between nations.
  15. Global business risk is any worldwide factor—outside the laws of supply and demand—that could impact the success or failure of any venture moving into the international arena.
  16. Which of the following is NOT true regarding GATT?
  17. In 1975, as business and policy makers’ alike saw the potential growth of global business, the World Trade Organization (WTO) was created by several countries in order to monitor trade around the entire world.
  18. Equity capital is the value of the MNC’s investment in shares of an enterprise in a foreign country.
  19. When considering FDI, the most important consideration facing a corporation is the type of ________ and ________ the investing corporation will have over the foreign entity.
  20. Which of the following are designated areas in Customs Ports of Entry that allow commercial merchandise to receive the same customs treatment it would receive if it were outside the commerce of the United States?
  21. Match the following
  • Transfer Risk
  • Big Mac Index
  • Developing Nation
  • Administrative Delays
  • Gross Domestic Product (GDP)
  • Buyer’s Credit
  • Theocratic Law
  • Protectionism
  • Supplier’s Credit
  • Industrial Property
  • Factor Conditions
  • Exports-Imports
  • Eli Heckscher & Bertil Ohlin
  • Adam Smith
  • Opportunity cost
  • Capital account
  • David Ricardo
  • Paul Krugman
  • Balance of Payment
  • General Agreement on Tariffs and Trade
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