International Business Basics-Chapter 3

Question 1

Comparative advantage is a situation in which a country specializes in the production of

Accepted Answer

a good/service at which it is relatively efficient

Question 2

Special tax on the sales of books is an example of a(n)

Accepted Answer

formal trade barrier

Question 3

Culture is the accepted

Accepted Answer

behaviors, customs and values of a society

Question 4

The phase of the business cycle in which unemployment is highest is

Accepted Answer

depression

Question 5

Goods and services sold to other countries are called

Accepted Answer

exports

Question 6

A country that wishes to enhance international trade activities would most likely use

Accepted Answer

a common market

Question 7

Exchange rate is the value of a currency in one country compared with the value is another

Accepted Answer

true

Question 8

International business is frequently referred to as all but

Accepted Answer

domestic trade

Question 9

Government actions create formal trade barriers

Accepted Answer

true

Question 10

Government stop of an export or import of a product

Accepted Answer

embargo

Question 11

As competition increases, prices

Accepted Answer

usually will decrease

Question 12

Private ownership of resources by individuals rather than by the government

Accepted Answer

capitalism

Question 13

Market price is the point where supply and demand are equal

Accepted Answer

true

Question 14

Absolute advantage exists when a country can

Accepted Answer

produce a good/service at a lower cost than other countries

Question 15

Which of the following would most likely cause a budget surplus

Accepted Answer

lower spending

Question 16

Four elements of the international business environment include:

Accepted Answer

econ, geographic, cultural and political/legal legal factors

Question 17

Value of the next best alternative that you were not able to choose

Accepted Answer

opportunity cost

Question 18

Which of the following would be an example of international business

Accepted Answer

a sales staff in Maine representing a foreign producer

Question 19

Deflation is the general decrease of prices

Accepted Answer

true

Question 20

Unemployment rate is the portion of people that are not working

Accepted Answer

true

Question 21

Budget deficit is when the government may spend less that it takes in

Accepted Answer

false

Question 22

The World Trade Organization was created to promote

Accepted Answer

trade around the world

Question 23

Process of choosing which needs and wants will be satisfied

Accepted Answer

economic decision-making

Question 24

When a country's imports exceeds its exports there is a trade

Accepted Answer

deficit

Question 25

Infrastructure refers to a nation's

Accepted Answer

transportation, communication and utility systems

Question 26

In emerging markets, consumer incomes and buying power are

Accepted Answer

increasing

Question 27

Geographic factors include all but

Accepted Answer

education

Question 28

When country has a favorable balance of payments

Accepted Answer

the value of its currency is usually constant or rising

International Business Basics-Chapter 3

Questions 28

International Business Basics-Chapter 3

Questions 28