Question : 71.Gem Globe, an American company, has invested substantial capital in : 1299185

 

71.Gem Globe, an American company, has invested substantial capital in precious stones mining activities outside the United States. This practice is referred to as:  

A. unrelated diversification.

B. foreign direct investment.

C. cross-border bartering.

D. organizational divestment.

E. international cartel.

72.When a firm invests resources in business activities outside its home country, it is referred to as:  

A. foreign exchange.

B. foreign divestiture.

C. speculative investment.

D. foreign direct investment.

E. cross-border cartel.

73.The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:  

A. deter any possible attempts to promote communism.

B. protect domestic industries from foreign competition.

C. prevent the occurrence of the Great Depression.

D. safeguard patents, copyrights, and trademarks.

E. promote the trade of services over the trade of manufactured goods.

74.The advanced industrial nations of the West committed themselves after World War II to removing barriers to the free flow of goods, services, and capital between nations. This goal was enshrined in the:  

A. Inter-American Treaty of Reciprocal Assistance.

B. Comprehensive Economic Partnership Agreement.

C. General Agreement on Tariffs and Trade.

D. North American Free Trade Agreement.

E. United Nations charter.

75.Which of the following reasons contributed to the Great Depression of the 1930s?  

A. Inability to meet the increasing world demand for products

B. Several countries accepting General Agreement on Tariffs and Trade

C. Increasing attack from foreign competitors on domestic industries

D. Privatization of state-owned organizations

E. Countries progressively raising trade barriers against each other

76.Which of the following organizations was established at the 1993 Uruguay Round?  

A. World Trade Organization

B. International Court of Justice

C. International Trade Enforcement Agency

D. United Nations

E. World Bank

77.The 1993 Uruguay Round:  

A. increased the trade and investment barriers.

B. excluded the trade of services from international trade.

C. transformed the World Trade Organization into the GATT.

D. provided enhanced protection for patents, trademarks, and copyrights.

E. promoted the worldwide rise of communism.

78.Which of the following is a part of the agenda of the Doha Round of talks launched by the WTO?  

A. Limiting the use of antidumping laws

B. Abolishing the International Monetary Fund

C. Increasing tariffs on industrial goods, services, and agricultural products

D. Persuading member governments to cut defense spending

E. Establishing GATT as a replacement for the WTO

79.Which of the following would be the biggest gain for the world’s poor nations from the 2001 Doha WTO talks?  

A. Gain from increasing barriers to cross-border investment

B. Gain from reduced agricultural tariffs and subsidies

C. Gain from expanding the use of antidumping laws

D. Gain from the promotion of communism across the globe

E. Gain from increased protectionism in the markets of the developed world 

80.The lowering of trade and investment barriers:  

A. protects domestic industries from foreign competition.

B. was not an agenda of the Uruguay Round.

C. allows firms to base production at optimal locations outside their home country.

D. creates an unfavorable environment for FDI.

E. caused the Great depression of the 1930s.

 

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