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

2. 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

3. 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

4. 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.

5. 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?

6. 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.

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

8. (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

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

10. 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

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

12. 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

13. The WTO was designed to

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

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

16. The two ways companies can engage in FDI include

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

18. Supplier's credit is

19. Quotas typically

20. Government interventions may

21. 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

22. 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?

23. 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

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

25. 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

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

27. 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

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

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

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

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

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

33. Political issues that significantly impact global business include

34. Government restriction of trade