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11. Government interventions may be used to decrease global competitiveness. a. True b. False 12. Which of the following is NOT true regarding GATT? a. Originally created by the Bretton Woods Conference as part of a larger plan for economic recovery after World War II b. Its primary purpose was to reduce barriers to FDI c. Representatives from twenty nations accepted what would later be considered the precursor to the EU (WTO). d. The first attempt at setting international trade rules covered forty-five thousand tariffs and 20 percent of the world trade. 13. 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 a. True b. False 14. The two ways companies can engage in FDI include a. Capital Investments and Joint ventures b. Mergers and foreclosures c. Greenfield investments and acquisitions d. None of the above 15. Which of the following is NOT a strategic goal of FDI? a. Establishing a presence in a new geographic market b. Creating and maintaining global competitiveness c. Filling gaps in global product lines d. Reducing capital and labor costs. (Production and logistical costs). 16. Socialism (Protectionism) is the economic policy of restraining trade between nations. a. True b. False 17. The Balance of Payments a. Is the sum of all monies that flow in and out of a government run program b. Includes imports, goods, land, people, and financial investments c. Acts as a gauge to track the coming and going of international trade dollars d. Is usually calculated on a semi-annual basis 18. All of the following are factors tha can affect the international BOP and either create or reduce surpluses and deficits except a. Prices of domestic goods b. Mergers and acquisitions c. Trade agreements d. Taxes and tariffs 19. Government interventions may a. Be used to increase global competitiveness b. Intervene to keep the balance of payments under control c. Promote protectionism

Liberty university busi 303 quiz 3 complete solution