Chapter 3

If a Big Mac costs 4 pesos, and the exchange rate is 1 peso= .053 USD, how many USD will buy you a Big Mac in Mexico?

Items bought from other countries

The cost of using someone else’s money

This group helps maintain an orderly system of world exchange rates

If 1 Mexican peso = .067 Canadian dollars, the peso is the stronger currency

An exchange rate indicates one currency’s value in relation to

A situation where a country specializes in the production of a good or service at which it is relatively more efficient

Foreign trade creates independence for a country

A tax that a government places on certain imported products

does away with tariffs on goods to encourage movement of goods and enlarge economics for Canada, the US, and Mexico

Occurs when a country sells more items to other countries than it buys

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

Sending out more money than is coming in

Which of the following is a political stability factor that can affect currency value

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

The value of currency in one country compared with the value in another is called the interest rate

One goal of the World Trade Organization is to eliminate import quotas

International business refers to activities that involve making buying and selling goods and services within a country

A lack of ___________ usually results in importing more goods

Items sold to other countries

Which of the following is a formal trade barrier

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

Which of the following tends to discourage international trade

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

The 3 main factors that affect currency exchange rates are the country’s balance of payments, economic conditions and

With a free-trade zone, member countries agree to remove all trade barriers on products traded among them

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

Exists when a country receives more money in a year than it pays out

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

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

A company's expanding to Korea & is researching their language, customs,& values is _ aspect of the business environment

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

Which of the following is an example of a global strategy?

Infrastructure refers to a country’s

The amount a country owes to other countries is called

If 1 US dollar = .76 British pounds, how many USD would it take to buy a £300 coat in London?

Completely prohibiting the import or export of a product

Which of the following situations represents an absolute advantage?

Which of the following is not a reason for quotas

Multinational companies sometimes control a country’s political power