Principles of Business Chapter 3

The three main factors that affect currency exchange rates among countries are the countries

Value of currency in one country compared to the value in another is called interest rate

An economy that is largely involved in agriculture is usually unable to provide large # of good

A country's culture traditions & religion can sometimes act as trade barriers

The amount of a country owes to other countries is called

Domestic business refers to business activities needed for creating, shipping, selling 

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

Infrastructure refers to a country's

Items sold to other countries

The cost of using someone else's money

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

A tax that a government places on certain imported products

MNC's sometimes control a country's political power

Which of the following tends to discourage international trade

Which of the following represents absolute advantage

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

What type of company is an organization that does business in several countries

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

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

Completely prohibiting the import or export of a product

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

Exists when a country specializes in the production of a good or service more efficiently

This group helps maintain an orderly system of world exchange rates

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

Occurs when a country buys more than it sells

Which of the following would likely cause the value of the dollar to rise

Items bought from other countries

Which of the following is NOT imported to the US in any great quantity

The three key effects on a country's level of economic development are technology, agricultural

Occurs when a country sells more than it buys

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

In a free trade zone member countries agree to remove duties& trade barriers on traded products

Without foreign trade, many of the things you buy would cost more or not be available