Name: _______________________Date: _______________________
BBB4M1 – Product 2 Test out
International Transact in the Modern World
Portion A: The case and Phony (15 Marks) / 15
Answer the following questions with true (T) or phony (F). Correct the fake statements Capital t
1 ) ___ T
Results of the positive effect include: superior human rights, increased efficiency, and advancement. 2 . ___ F
Trade negotiating are helpful because that they eliminate transact barriers and encourage foreign investment. a few. ___ The North American Totally free Trade Contract (NAFTA) is definitely advantageous pertaining to Canada because manufacturing careers have been delivered to Mexico in which labour is cheaper. T
T – Losing developing jobs to Mexico, due to cheap work is a downside because it diminishes the manufacturing sector canada, losing skilled and unskilled labour jobs. 4. ___ T
A common currency decreases the risk of exchange rate fluctuations. your five. ___ N
The Group of Ten (G8) and Group of Twenty (G20) go over macroeconomic issues such as monetary growth, operate liberalization, and helping expanding countries. six. ___ Organizations such as the United Nations (UN) tend not to concern themselves with financial issues. Rather, they just focus on human being rights and international tranquility. T
T – The ALGUN is highly mixed up in international economy. They are responsible for organizations that affect intercontinental business. They also endeavour to improve economic circumstances throughout the world. several. ___ Big t
International Trade is not always beneficial and can lead to cultural personality issues. almost 8. ___ Farrenheit
Worldwide Trade could be beneficial by attracting overseas investment in the domestic market. 9. ___ Global sourcing in an successful way of increasing the cost to make a product. T
T – Global sourcing actually decreases the price tag on production simply by moving production locations to areas where the expense of labour is less expensive. 10. ___ A business is a simple way for a company to control because they are not responsible for doing the work of operating the store, but they receive a talk about of the income for use of their brand. eleven. ___ T
A joint venture can be quite profitable for both individuals, but it can be very risky. 12. ___ F
Tariffs will be beneficial for international trade because they boost an international company's revenue. Big t
Capital t – Tariffs are not necessary for international operate because that they increase the cost of foreign goods. Companies have to reduce their very own profit margin if they would like to compete with regional goods which often not have tariffs on them. 13. ___ F
Protectionism may advantage a country, however it severely limitations a countries' opportunity for foreign trade and investment. 16. ___ An extremely valued Canadian dollar is beneficial because it motivates Canadian travel and leisure. T
T – The Canadian tourism industry actually endures because of a excessive Canadian dollar; people are certainly not attracted to Canada because it is more expensive to exchange their particular native money into Canadian money. 12-15. ___ Exchange rates may be affected by the economic condition of a country, just like inflation charge, unemployment price, and interest levels.
Part N: Multiple Decision (20 Marks) / 20
Answer the next multiple choice questions.
1 . A operate agreement can be
a) A process of charges between two countries
b) A treaty that eliminates trade obstacles between multiple countries c) A sale of products between two countries
d) An designated monopoly of 1 country above another.
installment payments on your The World Traditional bank and Foreign Monetary finance were created by e) The Geneva Convention
f) The Treaty Of Versailles
g) The typical Agreement about Trade and Tariffs
h) The Bretton Woods Conference
3. The _________________ is in charge of: making loans to cash squeezed countries, helping countries to restructure their financial systems, and deal with their personal debt: i) The World...