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General Business Chapter 3 Flashcards | StudBud
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General Business Chapter 3
Goods and services sold to other countries are called
Licensing
General Business Chapter 3
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1
Licensing
all of these
usually involves selling a product or service
is generally very risky for companies to expand into other countries
has a low fin. investment, so the potential fin. return is often low
2
Goods and services sold to other countries are called
balance of trade
exports
imports
balance of payments
3
We get cocoa beans from tropical regions. They are
exports
GDP
imports
comparative advantage
4
A country in which an MNC places business activities is called the
host country
economic community
free-trade zone
home country
5
What was created in 1944 to provide loans for rebuilding after WWII?
the World Bank
NAFTA
IMF
Economics
6
Why is infrastructure important to trade?
because bridges are pretty
for the movement of goods and services
to stop the government
to make countries isolated
7
A country can have absolute advantage in only one area.
True
False
8
If a _______________ wishes to do so, it can stop the export or import of a product completely
state
community
government
Congress
9
A limit that a government places on the quantity of a product that may be exported or imported
franchise
quota
luxury tax
tariff
10
Which of the following is like to cause the value of a country's currency to rise?
a increased demand for the nation's products and currency
prolonged inflation
a sudden change in government
higher interest rates
11
Pennsylvania sells apples to Virginia. That is an example of
international business
domestic business
exports
imports
12
An agreement between two or more companies to share a business project is called
a joint venture
MNC
an embargo
a balance of trade
13
________________ is a tax that a government places on certain imported products
tariff
embargo
quota
all of these
14
Which of the following is a trade barrier?
embargo
all of these
quota
tariff
15
The making, buying, and selling of good and services WITHIN a country is
global trade
all of these
domestic trade
international business
16
When a country has a favorable balance of payments, its currency is usually constant or rising.
False
True
17
The key effects on a country's level of economic development are
government system, political stability, and trade barriers
literacy rate, technology, and agricultural dependency
location, climate, and natural resources
religion, traditions, and customs
18
A joint venture is an agreement with 2 or more countries to remove duties/trade barriers on products traded among them
False
True
19
For years, the U.S. refused to trade with Cuba. This is called
a trade barrier
a tariff
an embargo
a quota
20
Some countries limit the amount of money their citizens can take out of the country when they travel.
True
False
21
Items the U.S. sells to Mexico are called
imports
quotas
exports
tariffs
22
A multinational company is a company that
does on domestic trade
CMN
does business in other countries
none of these
23
When does a positive or favorable balance of payments occur?
the nation receives less money in a year than it pays out
the country receives more money in a year than it pays out
none of these
both of these
24
The difference between a country's total exports and total imports is called
trade surplus
balance of trade
trade deficit
foreign debt
25
Agricultural countries usually provide more and better goods and services to its citizens.
False
True
26
A nation with a trade surplus is said to have a favorable trade position.
True
False
27
Suppose you want to exchange your 45 pounds for $92.50 US dollars. What is the value of 1 pound today in dollars?
$2.53
$2.06
$1.99
$1.50
28
Tariffs are taxes placed on certain imports. They are used to
enforce a quota
reduce the prices of steel
make a joint venture
protect domestic industry
29
Infrastructure is
all of these
railways
bridges
roads
30
Without foreign trade, all of the items you buy would cost less because they would not have shipping added in.
False
True
31
Which of the following countries has an absolute advantage in coffee production?
Saudi Arabia
Brazil
the United States
Ireland
32
About how many US jobs depend on international business?
1 of 6
1 of 4
1 of 2
1 of 10
33
The U.S. trades with over _____ countries.
10
50
180
100
34
Selling the right to use some intangible property for a fee or royalty is called
licensing
a free-trade agreement
a joint venture
franchising
35
What is a free-trade zone?
then stored, assembled, or used in manufacturing
both of these
none of these
a selected area where products can be imported duty-free
36
Most business activities occur within a country's own borders.
True
False
37
What is domestic business?
business within one's own country
none of these
business with other countries
imports
38
Which of the following is NOT a goal of the World Trade Organization?
lowering tariffs
helping poor countries with economic growth
strengthening import quotas
enforcing free-trade agreements between members
39
If there is political instability in a country, a business may
want to avoid doing business there
want to do business there
want to build bridges there
want to invade that country
40
Common market members
have a common external duty on products being import from nonmember countri
produce and sell exactly the same products
impose high tariffs on one another's products
prohibit one another's workers from moving freely across borders
41
Because of international trade, all nations of the world use the same banking system.
False
True
42
It is possible for the US to have a trade surplus with one country and a deficit with another country.
True
False
43
A country has imports of $100. It has exports of $400. What is its balance of trade?
positive
neutral
random
negative
44
Which of the following is NOT a cultural/social factor that affects international business?
language
religion
climate
values
45
When a country's imports exceed its exports, there is a trade
surplus
infrastructure
deficit
balance
46
A company is planning to sell the rights to its brand name for use in other countries is an example
joint venture
trade agreement
franchise
licensing agreement
47
A country has imports of $100. It has exports of $400. What is its balance of payments?
$400
$300
$500
-$300
48
Most business activities occur within a country's own borders.
True
False
