Liberty University BUSI 303 quiz 2 complete solutions correct answers A+ work

Liberty University BUSI 303 quiz 2 complete solutions correct answers A+ work

More than 5 different versions

·         Question 1

3.2 out of 3.2 points

International trading is very important to a nation because It generates business and government revenue, and it promotes varying levels of trust between trading partners

·         Question 2

3.2 out of 3.2 points

Specific government actions that promote trade include all except

·         Question 3

3.2 out of 3.2 points

The idea behind Foreign Direct Investment is to buy physical assets or a significant amount of ownership of a firm in another nation to gain a measure of managerial control.

·         Question 4

3.2 out of 3.2 points

The three factors that can affect the international Balance of Payments (BOP) and either create or reduce surpluses and deficits are Price of domestic goods,Trade agreements, and taxes and tariffs.

·         Question 5

3.2 out of 3.2 points

Within the legal aspects of international business the types of laws used across nations are Common, Natural, and Theocratic.

·         Question 6

3.2 out of 3.2 points

Which theory is related to the following statement: Operations of production are moved to a less-developed nation and the cycle is complete as highly-developed nations become importers of this product.

·         Question 7

3.2 out of 3.2 points

Which of the following places power in the hands of customs officials

·         Question 8

3.2 out of 3.2 points

Which theory is related to the following statement: 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.

·         Question 9

3.2 out of 3.2 points

Which of the following is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals; can be motivated by political, economic, or moral reasons.

·         Question 10

3.2 out of 3.2 points

Which of the following is designed to raise revenue for governments and provide a competitive advantage for domestic businesses?

·         Question 11

Match the questions to the best possible answer.

o     

Selected Match

I. 

Signifies the relationship between trade deficits and surpluses

E. 

Sum of all monies that flow in and out of a given country

M. 

First proposed the Theory of Advantages

T. 

Competitive Advantage of Nations

J. 

Goods in one country should = the price in the domestic

H. 

Total output of goods/services by a nation in a year

K. 

Classification of nations based upon certain achievements

B. 

Net change in foreign ownership of domestic assets

R. 

Sum of a country’s cash flow from trade in goods/services

A. 

Total output of goods/services within a nation in a year

F. 

Loan: exporter is covered; value of cover

P. 

Precursor to the World Trade Organization

L. 

Closely associated with long-term loans

D. 

Alleviate some of the cost associated with free trade

N. 

Development of an entirely new operation in a foreign nation

Though the World Trade Organization (WTO) has officially existed since 1975, the foundation for the rules in this trading system originates in the GATT.

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

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

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.

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?

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.

Which of the following is designed to raise revenue for governments and provide a competitive advantage for domestic businesses?

(blank) 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

Equity capital is the value of the MNC’s investment in shares of an enterprise in a foreign country.

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

Which of the following places power in the hands of customs officials?

Governments play a major role in support of technology by crafting industry­specific measures, such as tax credits for research and development of new technologies and trade policies that support essential technology sectors

The WTO was designed to

The General Agreement on Tariffs and Trade (GATT) was signed on January 1, 1948

In order to achieve economic advantage, a nation should specialize, produce, and export only products where the nation holds an absolute advantage.

The two ways companies can engage in FDI include

The equation represents the relationship between trade deficits and surpluses is expressed as: Exports – Investments = Savings – Imports

Supplier’s credit is

Quotas typically

Government interventions may

The U.S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U.S. businesses and their employees

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?

Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments

If a nation’s ________ far exceed its ______, then the balance of payments is out of control, or more simply stated, out of balance

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

Which of the following is NOT a way that Governments promote trade?

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

Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.

The activity, known as __________ is when companies opt to purchase land or other resources in other nations

When considering FDI, the most important consideration facing a corporation is the type of ________ and ________ the investing corporation will have over the foreign entity

Which of the following are types of risk companies are exposed to in international transactions

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership

Political issues that significantly impact global business include

Government restriction of trade

Operations of production are moved to a less-developed nation and the cycle is complete as highly-developed nations become importers of this product

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

All of the following are factors that can affect the international BOP and either create or reduce surpluses and deficits except

Which of the following is designed to raise revenue for governments and provide a competitive advantage for domestic businesses

Equity capital is the value of the MNC’s investment in shares of an enterprise in a foreign country

Political issues that significantly impact global business include

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

Government interventions may be used to decrease global competitiveness

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership

The U.S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U.S. businesses and their employees

Though the World Trade Organization (WTO) has officially existed since 1975, the foundation for the rules in this trading system originates in the GATT

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

Socialism is the economic policy of restraining trade between nations

Keeping track of the activity surrounding international trade and investment is done by maintaining a record of all international transactions, otherwise known as the balance of payments (BOP)

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

Which of the following are types of risk companies are exposed to in international transactions

In mathematical terms the current account is expressed as

Which of the following is NOT a way that Governments promote trade

The General Agreement on Tariffs and Trade (GATT) was signed on January 1, 1948

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

Risk of a claim from a previously disposed owner and risk that the current owner will be disposed

Greatest wealth and resources; HDI of 0.8 or higher

System that allows for the simultaneous operation of public/private owned enterprises

Used as a means of compensating someone for wrongful acts known as torts

Created to monitor trade around the world

Comprehensive control/regulation by a government in accordance with the plan of economic development

Governments block open trade within a country’s borders

Quantitative restrictions

Assessment of nations based upon certain achievements

Quantitative restrictions

Indicates the level of competitiveness of a national industry

When foreign ownership increases faster than domestic ownership

Governments accumulate wealth in form of gold bullion

Determines the actions needed to be taken if the goal is to maximize world production

Competitive Advantage of Nations

Interdependent group acting as a unified whole, performing activities to achieve a common goal

Used as a means for controlling Foreign Direct Investment

Sum of a country’s net income from trade in goods/services

Development of an entirely new operation in a foreign

International Product Life Cycle Theory

_______ 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

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

Which of the following is NOT a purpose behind embargoes

Government interventions may

The United States Department of the Treasury oversees and enforces all U.S. economic sanctions through the Office of Foreign Assets Control (OFAC).

Which of the following is NOT a strategic goal of FDI

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

The General Agreement on Tariffs and Trade (GATT) was signed on January 1, 1948

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

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

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership

All of the following are factors that can affect the international BOP and either create or reduce surpluses and deficits except

In mathematical terms the current account is expressed as

Which of the following is NOT true regarding GATT

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

The equation represents the relationship between trade deficits and surpluses is expressed as

Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments

The WTO was designed to

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

Which of the following places power in the hands of customs officials

The three factors that can affect the international Balance of Payments (BOP) and either create or reduce surpluses and deficits are Price of domestic goods,Trade agreements, and taxes and tariffs

Which theory is related to the following statement: Operations of production are moved to a less-developed nation and the cycle is complete as highly-developed nations become importers of this product

International trading is very important to a nation because It generates business and government revenue, and it promotes varying levels of trust between trading partners

Within the legal aspects of international business the types of laws used across nations are Common, Natural, and Theocratic

Which theory is related to the following statement: 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

Which of the following is designed to raise revenue for governments and provide a competitive advantage for domestic businesses?

The idea behind Foreign Direct Investment is to buy physical assets or a significant amount of ownership of a firm in another nation to gain a measure of managerial control

Which of the following is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals; can be motivated by political, economic, or moral reasons

Specific government actions that promote trade include all except

Representatives from twenty nations accepted what would later be considered the precursor to the EU (WTO)

Though the World Trade Organization (WTO) has officially existed since 1975, the foundation for the rules in this trading system originates in the GATT. (T/F)

acts as a gauge to track the coming and going of international trade dollars

Government interventions may be used to decrease global competitiveness. (T/F)

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. (T/F)

When considering FDI, the most important consideration facing a corporation is the type of ________ and ________ the investing corporation will have over the foreign entity.

If a nation's ________ far exceed its ______, then the balance of payments is out of control, or more simply stated, out of balance.

The General Agreement on Tariffs and Trade (GATT) was signed on January 1, 1948 (T/F)

The activity, known as __________ is when companies opt to purchase land or other resources in other nations

In order to achieve economic advantage, a nation should specialize, produce, and export only products where the nation holds an absolute advantage.

Keeping track of the activity surrounding international trade and investment is done by maintaining a record of all international transactions, otherwise known as the balance of payments (BOP). (T/F)

Nations can benefit from trade even when one trading partner does not have an absolute advantage on any of the products being traded.

Exports - Imports = Savings - Investments

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.

The equation represents the relationship between trade deficits and surpluses is expressed as: Exports - Investments = Savings - Imports (T/F)

Operations of production are moved to a less-developed nation and the cycle is complete as highly-developed nations become importers of this product.

Socialism is the economic policy of restraining trade between nations. (T/F)

The two ways companies can engage in FDI include

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. (T/F)

All of the following are factors that can affect the international BOP and either create or reduce surpluses and deficits except

Which of the following is NOT a strategic goal of FDI

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.

Equity capital is the value of the MNC's investment in shares of an enterprise in a foreign country. (T/F)

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. (T/F)

designed to raise revenue for governments and provide a competitive advantage for domestic businesses

Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments. (True or False)

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. (True or False)

_______ 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

Political issues that significantly impact global business include

Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.

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.

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.

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.

Which type of risk do managers have some control over?

The three types of global business risk include ownership risk, operational risk, and transfer risk.

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

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.

The U.S. Department of Commerce developed the International Trade Administration (ITA) in order to stimulate economic opportunities for U.S. businesses and their employees.

typically raise the price of imports, reduce the volume of imports, and encourage demand for domestically made substitutes.

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.

places power in the hands of customs officials

______ 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

loan in which the exporter is covered, but the value of the cover will be less than the value of the contract.

is designed to monitor trade around the entire world

is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals and can be motivated by political, economic, or moral reasons

The United States Department of the Treasury oversees and enforces all U.S. economic sanctions through the Office of Foreign Assets Control (OFAC).

NOT a purpose behind embargoes

Nations that primarily functioned under the centrally planned economic system prior to the 1980s, such as China and Russia, have embraced the market economy.

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

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

Which type of risk do managers have some control over?

_______ risk occurs when debtors in a country are unable to ensure timely payments to a foreign currency debt service because of either transfer or exchange restrictions or a general lack of foreign currency.

The WTO was designed to

The Organization for Economic Cooperation and Development (OECD), the WTO, the World Bank, and the International Monetary Fund have all indicated that unstable political systems are the greatest single barrier to economic development worldwide.

What is an economic and trade sanctions against targeted foreign countries, groups, organizations, and individuals; can be motivated by political, economic, or moral reasons?

Any company considering moving into a foreign economic market must consider the powerful influence of the military and religious leadership.

Political issues that significantly impact global business include?

What are three ways that Governments promote trade:

What 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?

What are designed to raise revenue for governments and provide a competitive advantage for domestic businesses?

Cultures such as China, North Korea, and Cuba believe that an economic value system should be founded on cumulative efforts, controlled by greater entities or governments.

What 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 US

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.

A loan in which the exporter is covered, but the value of the cover will be less than the value of the contract

Typically raise the price of imports, reduce the volume of imports, and encourage demand for domestically made substitutes.

Three purposes of embargoes:

The three types of global business risk include ownership, operational risk, and transfer risk

Three types of risks that companies are exposed to in International transactions:

In 1975, as business and policy makers' alike saw the potential growth of global business, the WTO, was created by several countries in order to monitor trade around the entire world.

What places power in the hands of customs officials?

The U.S. Dept. of Commerce developed the International Trade Administratino (ITA) in order to stimulate economic opportunities for U.S. business and their employees.

The U.S. Dept. of the Treasury oversees and enforces all U.S. economic sanctions through the Office of Foreign Assets Control (OFAC).