Exercise or Chap02.docVIP

Chapter 02 - The Dynamic Environment of International Trade 2- PAGE 5 Chapter 02 The Dynamic Environment of International Trade True / False Questions1.Trade barriers are pesky hurdles to peace and prosperity.? 2. One of the most severe problems faced by international marketers today is the extremely high level of tariffs the world over.? 3.With respect to total trade, the United States trades more with Mexico than any other country.? ? 4?The creation of the World Trade Organization (WTO) is one of the biggest victories for free trade in decades.? 5.If there is a limit on the number of imported television sets from Mexico, this is called a quota.? 6.If Germany agrees voluntarily to limit the number of automobiles exported to the United States, this would be an example of a quota.? 7.A government boycott is an absolute restriction against the purchase and importation of certain goods from other countries.?? 8.?A government can effectively regulate its international trade position by various forms of boycotts and embargoes.? ? 9. The GATT (General Agreement on Tariffs and Trade) was set up as a successor to the WTO (World Trade Organization).??? 10. GATT stands for Global and Territorial Trade.? 11.The WTO (World Trade Organization) is an institution, not an agreement as was GATT.? 12.The International Monetary Fund (IMF) was created to serve as a watchdog over most international financial transactions between nations.? 13.An International Monetary Fund device, special drawing rights (SDR), is in effect paper gold.? ? 14.Those that protest WTO meetings are generally thought to be antiglobalization in their orientation.? Multiple Choice Questions? 1. International work continues around the world to reduce these trade obstacles to peace and prosperity.?A.?Satellite and terrestial communication.B.?Medical and drug prices.C.?National debt and high exchange rates.D.?Tariff and nontariff trade barriers. 2.All of the following would be considered to be r