BUS 110 - Chapter 3

Question 1

Until 2016, the United States had ____ against Cuba that prevented Americans from buying and bringing home Cuban cigars.

Accepted Answer

an embargo

Question 2

One positive effect of globalization on the economy is

Accepted Answer

it often means more free trade and economic growth.

Question 3

China has developed numerous efficiencies for producing consumer electrics like phones & laptops. This describes -

Accepted Answer

an absolute advantage.

Question 4

The European Union and Mercosur are ________ markets that have removed trade barriers with member countries.

Accepted Answer

common

Question 5

The value of China&#x27;s exports exceeds all other countries in the world, far exceeding its imports. China has

Accepted Answer

a favorable balance of trade.

Question 6

If a company in Italy wants to produce clothes with Mickey Mouse, it must get permission from Disney & pay a fee-This is

Accepted Answer

foreign licensing.

Question 7

Which organization would be best suited to assess the damage caused to a country by a tsunami or earthquake?

Accepted Answer

World Bank

Question 8

What outcome is a negative effect of globalization?

Accepted Answer

greater income and wealth disparity

Question 9

In which region are bribes illegal?

Accepted Answer

North America

Question 10

You have a company that makes high-end chocolates, and you want to begin selling to retailers in other countries.

Accepted Answer

direct exporting.

Question 11

The United States imports far more than it exports each year. The United States can best be described

Accepted Answer

as operating with an unfavorable balance of trade.

Question 12

Governments may seize either domestic or a foreign company&#x27;s property through ________ without paying the owner.

Accepted Answer

expropriation

Question 13

When a government decides it needs to protect its domestic industries against foreign competition, it is engaging in

Accepted Answer

trade protectionism.

Question 14

The ________ is the value of a country&#x27;s exports compared to the value of its imports over a particular period of time.

Accepted Answer

balance of trade

Question 15

The theory of __, countries specialize in goods that have a lower opportunity cost, is cited by supporters of free trade

Accepted Answer

comparative advantage

Question 16

The United States grows more soybeans than it consumes, so it sells the excess to other countries. This is -

Accepted Answer

exporting.

Question 17

Ann Arbor China Dolls makes well over half of their revenue by shipping their dolls to foreign countries. This is -

Accepted Answer

exporting.

Question 18

The U.S. can plant, grow, harvest, and sell corn more cheaply than any other country in the world.

Accepted Answer

We can safely say that the U.S. has a comparative advantage.

Question 19

What is an advantage of entering a foreign market through a joint venture?

Accepted Answer

local expertise

Question 20

India can operate numerous call centers compared to other countries due to low cost of labor & abundant labor force.

Accepted Answer

India can be described as having an absolute advantage.

Question 21

A(n) ________ is a complete ban on the import or export of certain products.

Accepted Answer

embargo

Question 22

When a country accepts goods as partial payment for its own goods, the country is engaging in

Accepted Answer

countertrading.

Question 23

The movement of goods and services among nations without political or economic restrictions is called

Accepted Answer

free trade.

Question 24

The USMCA is a trade agreement among

Accepted Answer

the United States, Canada, and Mexico.

Question 25

The United States is a democratic political system because

Accepted Answer

it relies on free elections and representative assemblies.

Question 26

What would best represent a positive effect of trade in the global economy?

Accepted Answer

increased diversity of people, products, services, and ideas

Question 27

The roads, utilities, schools, and hospitals in a community are part of the

Accepted Answer

infrastructure.

Question 28

When the value of a country&#x27;s total imports exceeds the value of its total exports, it has

Accepted Answer

a trade deficit.

Question 29

Which method of entering foreign markets has the lowest risk?

Accepted Answer

importing and exporting

Question 30

When a government wants to make the prices of its goods more competitive, it would implement

Accepted Answer

a protective tariff.

Question 31

Which best represents an example of nonverbal communication as it pertains to cross-cultural differences?

Accepted Answer

standing within a coworker’s personal space

Question 32

When one country can produce a product more cheaply or efficiently than any other country, it has a(n) ______ advantage.

Accepted Answer

absolute

Question 33

Another name for a joint venture is

Accepted Answer

a strategic alliance.

Question 34

The European Union was originally formed as the

Accepted Answer

European Coal and Steel Community.

Question 35

Which best represents a trait common in developing countries?

Accepted Answer

low average income

Question 36

If a country is led by a military junta, it would best be described as having a ________ political system.

Accepted Answer

totalitarian

Question 37

Although many countries in the world could produce pottery, if Mexico can produce it the most efficiently, then it has

Accepted Answer

a comparative advantage over other countries

Question 38

What is the rate at which one country&#x27;s money can be exchanged for the money of another country?

Accepted Answer

currency exchange rate

Question 39

The United States recently imposed a tax on coconuts in order to raise money to be used for government spending. This is

Accepted Answer

a revenue tariff.

Question 40

Which form of protectionism is designed to raise money for the government?

Accepted Answer

revenue tariffs

Question 41

________ countries receive a large amount of foreign investment and are home to most international organizations.

Accepted Answer

Developed

Question 42

________ is/are the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.

Accepted Answer

Culture

Question 43

Canada has become the home to several international organizations over the years. Canada can best be described as a(n) _

Accepted Answer

developed country.

Question 44

The United States wants to increase sales of compact cars in the country, so it bans all imports of foreign compact cars

Accepted Answer

an embargo.

Question 45

BigAir buys parts from a domestic company & sells its finished planes to Mexico. The company that makes the parts

Accepted Answer

engages in indirect exporting.

BUS 110 - Chapter 3

Questions 45

BUS 110 - Chapter 3

Questions 45