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web.groovymark@gmail.com
- December 7, 2024
Question 41
The practice of selling a product in a foreign market at a price lower than its production cost or lower than in its domestic market is called:
a) Outsourcing
b) Dumping
c) Subsidizing
d) Licensing
Answer: b) Dumping
Explanation:
Dumping occurs when a company sells goods in a foreign market at a price lower than its cost of production or lower than in its home market, often to gain market share.
Question 42
What is the main function of the World Trade Organization (WTO)?
a) To provide loans to developing nations
b) To settle trade disputes between countries
c) To regulate currency exchange rates
d) To promote environmental sustainability
Answer: b) To settle trade disputes between countries
Explanation:
The WTO resolves trade disputes between member countries, ensuring that international trade flows as smoothly, predictably, and freely as possible.
Question 43
When a country’s value of exports is greater than its value of imports, this is referred to as:
a) Trade deficit
b) Trade balance
c) Trade surplus
d) Capital surplus
Answer: c) Trade surplus
Explanation:
A trade surplus occurs when a country exports more goods and services than it imports, leading to a positive balance of trade.
Question 44
When countries voluntarily limit the amount of goods they export to another country to avoid trade restrictions, this is called:
a) Tariff
b) Absolute quota
c) Embargo
d) Voluntary export restriction
Answer: d) Voluntary export restriction
Explanation:
Voluntary export restrictions (VERs) are agreements between exporting and importing countries where the exporter agrees to limit the quantity of goods shipped to the importer.
Question 45
The process of obtaining funds from a large number of small investors, often via online platforms, is called:
a) Venture capital
b) Private equity
c) Crowdsourcing
d) Bonds
Answer: c) Crowdsourcing
Explanation:
Crowdsourcing allows individuals or companies to raise funds from multiple small investors, usually via the internet, to finance a new venture or project.
Question 46
The inequality between groups to access knowledge and use of information and communication technologies is referred to as:
a) Digital inclusion
b) Knowledge gap
c) Digital divide
d) Technological disparity
Answer: c) Digital divide
Explanation:
The digital divide refers to the gap between individuals or regions that have access to modern information and communication technology and those that do not.
Question 47
A specialized agency of the United Nations responsible for communication and information issues is called:
a) International Telecommunication Union
b) World Trade Organization
c) International Monetary Fund
d) World Bank
Answer: a) International Telecommunication Union
Explanation:
The International Telecommunication Union (ITU) is a UN agency responsible for global telecommunication standards, policies, and international cooperation on information technology.
Question 48
Which areas traditionally suffer from the digital divide?
a) Urban areas
b) Industrial regions
c) Rural areas
d) Coastal regions
Answer: c) Rural areas
Explanation:
Rural areas often suffer from the digital divide due to limited access to infrastructure, internet connectivity, and technological resources compared to urban areas.
Question 49
A government is managing a difficult economy that appears to be at a standstill and a direct tax rate that is rapidly decreasing. The government decides to use an indirect tax to improve the situation. Which tax did the government use?
a) Income tax
b) Property tax
c) Goods and services tax
d) Capital gains tax
Answer: c) Goods and services tax
Explanation:
Goods and services tax
Question 50
Which globalization risk refers to the adherence to laws of countries in which an organization may operate?
a) Political
b) Economic
c) Legal
d) Cultural
Answer: c) Legal
Explanation:
Legal globalization risk involves complying with the varying legal systems and regulations in the countries where a company operates.
