Ateneo de Davao University

Jacinto Street, Davao City

International Business and Trade
Quiz 1

Name:Azizah Ryian Ang Class Schedule: 1:30-3:00 PM MW

Course and Year: _BSMA 3-B___ Date:July 22, 2020
Room: _______________

Test 1. True or False (1 point each)

Instruction: Identify the following statement below if it is true and false. If the statement provides
accurate details, write the word True in capital letters, and if it provides an incorrect statement,
write the word False in small letters in the space provided before each statement.

false1. Emerging market economies are countries in the process of becoming industrialized
economies and offer limited opportunities for foreign investment.
TRUE2. Emerging market economies are countries in the process of becoming industrialized
economies. One of their characteristics is high market volatility and low-to-mid per capita
income.
TRUE3. One of the purposes of the international organization is to assist those smaller states with an
opportunity for stronger economic power.
false4. The objective of the World Bank is to provide loans and grants to the governments limited only
for the poorer country for their various projects and capitalization.
false5. IMF operates a global system of various trade rules, act as a forum for negotiating trade
agreements.
TRUE6. WTO, one of their goal, is to make sure that its members can have a trade transaction
smoothly and fairly.
false7. Transparency will lead among nation for economic growth but nerver stop corruption.
false8. International organization promote peace, destabilization, prosperity and alliance.
false9. One of the positive outcomes of emerging economies is will lead among nation to a centrally
planned economy rather than an open market.
TRUE10. One of the impacts of a good institution is to have a growing economy, prevent
starvation, and ambitious economic reform.

Test 2. Multiple Choices (1 point each)

Instruction: Write only the correct letter of your choices in the space provided before each
statement.

d 1. One of the function of World Trade of organization

a. Administering trade agreements

b. Acting as a forum for trade and organization
c. Settling trade only
d. both a and b only
e. both a, b and c

e 2. Five principles of WTO which became the foundation of the multilateral system

a. Trade without discrimination and Free Trade

b. Predictability
c. Promoting fair competition
d. Encouraging economic reforms and developing countries
e. All of the above

a 3. It supports the reconstruction and restructuring of member countries using funds raised
in international capital markets.

a. IBRD
b. IFC
c. IDA
d. MIGA
e. IMF

e 4. Works on issues related to foreign investment dispute

a. IFC
b. IDA
c. WORLD BANK
d. MIGA
e. ICSID

e 5. Institutional structure
a. Enforce contracts
b. Implement property rights
c. Promote market competition across developed nations
d. Transfer Information
e. All of the above

e 6. One of the benefits of international trade or business to the national economy

a. Increase in employment opportunities.

b. Product Obsolescence
c. Increase in standard of living of the people.
d. both a and b
e. both a and c

e 7. The benefits of international trade or business to the exporting firm

a. Less Business Risk

b. Legal restriction
c. Technological improvements
d. both a and b only
e. both a, b and c

e 8. International business or trade is important to other points of view

a. Limited to international collaboration

b. Foster peace and goodwill
c. Greater variety of goods available for consumption
d. both a and b
e. both b and c

e 9. A Loan Syndication represents for

a. Project financing and lending activities

b. Credit enhancement
c. Structuring of loans
d. Commercial banking facilities
e. All of the above

____e____10. The main purpose of international policies

a. enforce transparency and disclosure
b. free-market pricing and movement of goods, services
c. promoting good institution
d. strengthening the role of private sector
e. all of the above

Test 3. Essay (5 points each)

1. Discuss the importance of international business transactions in both emerging

and developed economies.
Answer: the importance of international business transactions in emerging
economies is that it opens a gate of opportunity to those countries to do business
as well as accept foreign aid and technologies that could help their economy as
well as their people. For developed economies is that it maintains its connection
with other countries and also they have the potential to cut cost especially the
labor for their products because they can let people from emerging economies do
a part of their products for them. That is why, international business transactions
are important for both emerging and developed economies. Because it promotes
collaboration and exchange of ideas that is vital for the both of them.
2. What is the application or purpose of loan syndication? Provide atleast one example.

Answer: The main goal of loan syndication is to spread the risk of a borrower default
across multiple lenders or banks, or institutional investors, such as pension funds and
hedge funds an example of this is a transportation project, such as a high speed rail,it
may involve a group of investors and lenders, each specializing in a portion of the
project, such as rail lines, cars, bridges and tunnels, and signal and control
technologies.they are sharing the load of the work therefore, it is not difficult and the risk
is not too high.