Chapter 3 Review

Question 1

Countries that are committed to agriculture usually provide more and better goods and services.

Accepted Answer

False

Question 2

A joint venture is an agreement between two or more countries to remove barriers on products.

Accepted Answer

False

Question 3

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

Accepted Answer

tariff

Question 4

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

Accepted Answer

climate

Question 5

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

Accepted Answer

True

Question 6

It's possible for the US to have trade surplus with one country and trade deficit with another.

Accepted Answer

True

Question 7

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

Accepted Answer

licensing

Question 8

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

Accepted Answer

franchise

Question 9

About how many US jobs depend on international business?

Accepted Answer

1 out of 6

Question 10

The United States conducts trade with over ___ countries.

Accepted Answer

180

Question 11

A country can have an absolute advantage in only one area.

Accepted Answer

False

Question 12

Most business activities occur within a country's own borders.

Accepted Answer

True

Question 13

A country specializing in the production of a good that it is better is called __ advantage.

Accepted Answer

comparative

Question 14

Items bought from other countries are called __

Accepted Answer

imports

Question 15

__ rates are the cost of using someone else's money.

Accepted Answer

interest

Question 16

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

Accepted Answer

strengthening import quotas

Question 17

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

Accepted Answer

False

Question 18

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

Accepted Answer

multinational

Question 19

If a nation imports more than it exports, it has a trade ___

Accepted Answer

deficit

Question 20

A country in which an MNC places business activities is called the

Accepted Answer

host country

Question 21

A trade ___ is a restriction to free trade.

Accepted Answer

barrier

Question 22

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

Accepted Answer

culture

Question 23

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

Accepted Answer

increased demand for the nation's products and currency

Question 24

This international trade organization was created to provide loans for rebuilding after WWII

Accepted Answer

World Bank

Question 25

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

Accepted Answer

exchange

Question 26

Which of the following countries has an absolute advantage in coffee production?

Accepted Answer

Brazil

Question 27

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

Accepted Answer

quota

Question 28

When a country has a good balance of payments, the value of currency is constant or rising.

Accepted Answer

True

Question 29

Goods and services sold to other countries are called

Accepted Answer

exports

Question 30

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

Accepted Answer

True

Question 31

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

Accepted Answer

balance of payments

Question 32

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

Accepted Answer

domestic business

Question 33

The key effects on a country's level of economic development are

Accepted Answer

literacy level, technology, & agricultural dependency

Question 34

A nation's transportation, communication, and utility systems is referred to as its ___

Accepted Answer

infrastructure

Question 35

International business is frequently referred to as world or __ trade.

Accepted Answer

foreign

Question 36

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

Accepted Answer

unfavorable

Question 37

Common market members

Accepted Answer

have common duty on products being imported from nonmembers

Question 38

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

Accepted Answer

balance of trade

Question 39

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

Accepted Answer

embargo

Question 40

Foreign __ is the amount a country owes to other countries.

Accepted Answer

debt

Question 41

Without foreign trade, all the items you buy would cost less: they wouldn't need to be shipped.

Accepted Answer

False

Question 42

Licensing

Accepted Answer

a low financial investment so financial return is often low

Chapter 3 Review

Questions 42

Chapter 3 Review

Questions 42