Business Fundamentals Exam 3 Review

No exporting or importing

The cost of using someone else's money

Franchising is selling the right to use a trademark or brand name for a fee or royalty

Items sold to other countries

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

Which of the following is NOT imported to the United States in any great quantity?

Infrastructure refers to a country's...

The making, buying, and selling of goods and services within a country

Multinational companies sometimes control a countries political power

An agreement between two or more companies to share a business project

Items bought from other countries

Balance of payments, economic conditions, & political stability affect currency exchange rates

Which of the following would likely cause the value of the dollar to RISE?

The difference between a country's total exports and total imports

If a country can produce a good at a lower cost than others, they have a comparative advantage

If a country uses the same product/marketing strategy worldwide, they use a global strategy

Literacy level, technology, agricultural dependency have an affect on economic development

Geographic factors include..

A country's culture, traditions, and religion can sometimes act as informal trade barriers

Organization that does business in multiple countries

Business activities needed for creating, shipping, & selling goods across national borders

This group help maintain an orderly system of world exchange rates

A country has a comparative advantage when they can produce a product most efficiently

Which of the following situations represents an absolute advantage?