Principles of BMF Chapter 3

It is possible for the United States to have a trade surplus with one country and a trade deficit with another

When a country has a favorable balance of payments, the value of its currency is usually constant or rising

A tax that a government places on certain imported products is called a(n)

Licensing

Because of international trade, all nations of the world use the same banking system

This international trade organization was created in 1944 to provide loans for rebuilding after World War II

A(n) ____________________ company is an organization that does business in several countries

A country can have an absolute advantage in only one area

A nation’s transportation, communication, and utility systems is referred to as its ____________________.

Which of the following counties has an absolute advantage in coffee production

The United States conducts trade with more than ____________________ countries

If a nation imports more than it exports, it has a trade ____________________.

International business is frequently referred to as world or ____________________ trade

Today it is difficult to define economoics in terms of national borders

Foreign ____________________ is the amount a country owes to other countries

Which of the following scenarios is likely to cause the value of a country’s currency to rise

Items bought from other countries are called ____________________.

The difference between the amount of money that comes into a country and the amount that goes out is called the

The accepted behaviors, customs, and values of a society are referred to as ____________________.

Which of the following is NOT a goal of the World Trade Organization

A(n) ____________________ is the right to use a company name or business process in a specific way

Selling the right to use some intangible property for a fee or royalty is called

A negative or ___________ balance of payments occurs when a country sends out more money than it brings in.

The key factors that affect a country’s level of economic development are

Which of the following is NOT a cultural/social factor that affects international business

Countries that devote most of their economies to agriculture usually provide more and better goods and services

A nation with a trade surplus is said to have a favorable trade position

A limit that a government places on the quantity of a product that may be exported or imported during a given period

Some countries limit the amount of money their citizens can take out of the country when they travel

A country in which a multinational company conducts business activities is called the

Goods and services sold to other countries are called

A trade ____________________ is a restriction to free trade

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

When a government completely stops the import or export of a product, it is called a(n) ____________________.

A society's culture has a strong influence on business activities. Which of these is an example of a cultural influence

The difference between a country’s total exports and total imports is called the

____________________ rates are the cost of using someone else’s money

Common market members

A joint venture is an agreement among two or more countries to remove duties and trade barriers on products traded

Without foreign trade, all of the items you buy would cost less, because they would not need to be shipped

The ____________________ rate is the value of a currency in one country compared with the value in another.