Updated on 05/05/2015

BusAd 175:

Spring 2012

Course #2787

April 16 - June 6, 2012

True

False

1.

NAFTA (North American Free Trade Association) is ...
 

(a)

the political and economic union of Canada, US and Mexico to combat the problem of drug trafficking.

(b)

designed to provide for free trade across the three North American trading partners ─ Canada, US and Mexico.

(c)

is the trading block for North America that, over time, has also included the countries of Central American region.

2.

The GATT  (General Agreement on Tariff and Trade) ...
 

(a)

has used the principle of nondiscrimination to reduce trade barriers.

(b)

was an organization in which participating nations were called the “contracting parties.”.

(c)

is the international agreement that created the World Trade Organization (WTO).

3.

The WTO  (World Trade Organization) regulates trade between the participating countries using these trade policies.
 

(a)

Nondiscrimination.

(b)

Trade liberalization.

(c)

Settlement of trade disputes by adjudication.

4.

NAFTA has facilitated substantial increases of foreign direct investment in which country?
 

(a)

United States

(b)

Canada.

(c)

Mexico.

5.

The Andean Pact includes ...
 

(a)

United States, Canada, Mexico, Bolivia

(b)

Bolivia, Colombia, Ecuador, Peru

(c)

Argentina, Bolivia, Nicaragua, Venezuela

6.

The European Union (EU) ...
 

(a)

has uniform customs duties on goods imported from countries outside of the EU.

(b)

has a common agricultural policy across the Union.

(c)

has a common currency, called the Euro, across all the members of the Union.

7.

Which of the following is a major advantage of sole proprietorships?
 

(a)

They are not as flexible to manage as a partnership.

(b)

The owner of a sole proprietorship is taxed as an individual, at a lower rate than corporations.

(c)

Sole proprietorships are more subject to maximum government regulations than other businesses.

8.

Advantages of a corporation include ...
 

(a)

Free transferability of shares.

(b)

Perpetual existence.

(c)

Ability to raise additional capital by selling shares in the corporation.

9.

If a small business is conducted from one’s home, all direct expenses for the business part of the home are ...
 

(a)

Nondeductible expenses

(b)

Deductible expenses

10.

In general, U.S. companies that export their goods overseas will incur no tax liability in the importing country if:
 

(a)

They undertake their exports through independent distributors.

(b)

Their agents overseas do not have the authority to conclude sales contracts on behalf of the U.S. exporter.

(c)

Income from U.S. services income is generally exempt from host country taxation

11.

A partnership is required to register its business name with the appropriate state agency under the following circumstance:
 

(a)

Under all circumstances.

(b)

Only if it operates under a fictitious name.

(c)

Only if it uses the name of a similar business.

12.

You plan to export a certain product or service to another country. Which of these offers the simple and direct way for preliminary evaluation of the potential of that country's market for your particular product or service?
 

(a)

Trade statistics.

(b)

Foreign investment data.

(c)

Statistical data.

13.

Which of these would you identify as integral to a "systematic" rather than "reactive" approach in your export planning and preparing efforts? 
 

(a)

A systematic approach involves the selection of a service based only on immediate market need, whereas a reactive approach is based on the selection based on overall market demand.

(b)

The systematic approach involves the selection of a product based on immediate market need, whereas the reactive approach is based on overall market demand.

(c)

.A systematic approach involves the selection of a product and service based on overall market demand, whereas a reactive approach is based on the selection on the basis of immediate market demand.

14.

Opportunities often arise suddenly, so limiting your opportunity to use a "systematic" rather than "reactive" approach for your export planning and preparing efforts. And yet, irrespective of whether your approach is systematic or not, the factors that govern your selection of the manufacturer or supplier of the product include ... 
 

(a)

Quality and reliability.

(b)

(c)

15.

International marketing research helps to ... 
 

(a)

(b)

16.

Jim is a U.K. citizen who was in Florida for 60 days in 2004, 30 days in 2005, and 160 days in 2006. Would he be considered a U.S. resident for the 2006 tax returns?
 

(a)

Yes. He has to be in the country for only 180 days minimum.

(b)

(c)

17.

Exporting and importing of goods to and from politically unstable countries is often risky and can be affected by a number of factors. The following factors are NOT amongst them, however. 
 

(a)

Entry barriers.

(b)

(c)

18.

Which of the following is often a tool used by exporters for overseas promotions? 
 

(a)

Indirect mail.

(b)

(c)

19.

Which of the following is a common mistake made by potential exporters?
 

(a)

Failure to obtain qualified export counseling.

(b)

(c)