INTERNATIONAL MARKETING MIDDLE EAST EDITION CATEORA - TEST BANK

1.

After World War II, the U.S. provided assistance to other countries to develop their markets and improve global trade though it gained no returns on these initiatives.  
 
True    False

2.

The GATT became part of the World Trade Organization in 1995, with the ratification of the Uruguay Round agreements.  
 
True    False

3.

As part of the worldwide economic growth and rebuilding after World War II, countries once classified as less developed were reclassified as underdeveloped countries.  
 
True    False

4.

By the year 1971, the United States was selling more to other countries than it bought from them; that is, the United States had a favorable balance of trade.  
 
True    False

5.

The Organization for Economic Cooperation and Development (OECD) has estimated that the economies of the developed world will expand at much faster rates when compared to the developing economies.  
 
True    False

6.

A nation’s balance-of-payments statement records all financial transactions between its residents and those of the rest of the world during a given period of time.  
 
True    False

7.

In a balance-of-payments record, if the credit and debit offset each other, it means that a nation is in particularly good financial condition.  
 
True    False

8.

The reserves account is a record of direct investment, portfolio investment, and short-term capital movements to and from countries.  
 
True    False

9.

As the U.S. trade deficit has grown, pressures have begun to push the value of the dollar to higher levels.  
 
True    False

10.

Protection of an infant industry is recognized by economists as a valid argument in favor of protectionism.  
 
True    False

11.

A case might be made for temporary protection of markets with excess productive capacity or excess labor when such protection could facilitate an orderly transition.  
 
True    False

12.

To encourage development of domestic industries, governments work on reducing trade barriers.  
 
True    False

13.

In general, tariffs decrease inflationary pressures.  
 
True    False

14.

Tariffs are often used as reprisals against protectionist moves of trading partners.  
 
True    False

15.

Quotas strictly permit importing on a case-by-case basis.  
 
True    False

16.

Quotas are more flexible than import licenses.  
 
True    False

17.

A VER is generally imposed under the threat of stiffer quotas and tariffs being set by the importing country if a VER is not established.  
 
True    False

18.

A government boycott is a partial restriction against the purchase and importation of certain goods and/or services from other countries.  
 
True    False