1. Which of the following organizations was created in 1995 by the Uruguay Round and is based in Geneva, Switzerland?

a) The Federal Trade Commission

b) The World Trade Organization

c) The North American Free Trade Association

d) The European Union

e) The Asia-Pacific Economic Cooperation

2. Which of the following is true of the North American Free Trade Agreement (NAFTA)?

a) It makes it tougher for businesses in the United States to invest in Mexico.

b) It provides protection for intellectual property.

c) It complicates the country-of-origin rules.

d) It has virtually eliminated tariffs on goods traded between the United States and Cuba.

e) It enforces trade restrictions on agricultural goods.

3. Which of the following trade alliances is likely to promote economic cooperation between Australia, Canada, and Singapore?

a) The Association of Southeast Asian Nations (ASEAN)

b) The European Economic Community (EEC)

c) The North American Free Trade Agreement (NAFTA)

d) The European Union (EU)

e) The Asia-Pacific Economic Cooperation (APEC)

4. From the perspective of the United States, the process of foreign companies transferring tasks and jobs to U.S. companies is called _____.

a) importing

b) factoring

c) benchmarking

d) dumping

e) insourcing

5. Companies that want a high degree of control and are willing to invest considerable resources in international business may consider _____ as their method of entry into foreign markets.

a) strategic alliances

b) outsourcing

c) franchising

d) exporting

e) direct investment