Intro to Bus Chapter 3 Review

Question 1

This exists when a country can produce a good or service at a lower cost than other countries

Accepted Answer

absolute advantage

Question 2

When a country buys more than it sells it is called

Accepted Answer

a trade deficit

Question 3

Franchising is

Accepted Answer

selling the right to use the company's name

Question 4

An agreement btwn 2 or more companies to share a business project is called

Accepted Answer

a joint venture

Question 5

Items bought from other countries are

Accepted Answer

imports

Question 6

One goal of the WTO is to eliminate

Accepted Answer

import quotas

Question 7

The main factors that affect currency exchange rates among countries are

Accepted Answer

all of the above

Question 8

The difference between a country's total exports and total imports is called a balance of

Accepted Answer

trade

Question 9

An informal trade barrier would include a country's

Accepted Answer

all of the above

Question 10

Infrastructure refers to a country's

Accepted Answer

transportation, communication & utility systems

Question 11

What are the main factors that affect a country's economic development

Accepted Answer

all of the above

Question 12

If a country exports more than it imports, it has a

Accepted Answer

Trade Surplus

Question 13

The difference btwn the amt of $ coming in and going out of a country is called a balance of

Accepted Answer

payments

Question 14

When a company completely stops all imports or exports.

Accepted Answer

Embargo

Question 15

Multinational companies sometimes control a country's

Accepted Answer

political power

Question 16

A limit on the quantity of a product that may be imported or exported is a

Accepted Answer

quota

Question 17

The cost of using someone else's money is

Accepted Answer

the interest rate

Question 18

Which of the following tends to discourage international trade?

Accepted Answer

an embargo

Question 19

This group helps maintain an orderly system of world exchange rates

Accepted Answer

International Monetary fund

Question 20

A tax that a government places on certain imported products is a

Accepted Answer

tariff

Questions 20