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Principles of Business, Finance & Marketing- Chapter 3 Review Flashcards | StudBud
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Principles of Business, Finance & Marketing- Chapter 3 Review
Principles of Business, Finance & Marketing- Chapter 3 Review
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Austin High School Fort Bend Independent School District
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Licensing
all of the above.
is generally a very risky way for a company to expand into other countries.
usually involves selling a product or service.
Has low investment, resulting in low potential returns.
2
A nation with a trade surplus is said to have a favorable trade position.
False
True
3
A government limit on the quantity of a product exported or imported is called a
luxury tax.
quota.
tariff.
trade surplus.
4
Some countries limit the amount of money their citizens can take out of the country when they travel.
True
False
5
Common market members
Impose a common external duty on imports from non-member countries.
produce and sell exactly the same products.
prohibit one another’s workers from moving freely across borders.
impose high tariffs on one another’s products.
6
When a country has a favorable balance of payments, the value of its currency is usually constant or rising.
True
False
7
Without foreign trade, items would cost less because they wouldn't need to be imported.
False
True
8
Which of the following scenarios is likely to cause the value of a country's currency to rise?
prolonged inflation.
sudden change in government.
increased demand for the nation's products and currency.
higher interests rates.
9
Because of international trade, all nations of the world use the same banking system.
True
False
10
The Name of This Course is Called
Principles of Agriculture.
Principles of Franchising.
Principles of Business.
Principles of Economics.
11
A joint venture is an agreement between countries to remove trade barriers and duties on exchanged products.
False
True
12
A country in which a multinational company conducts business activities is called the
economic community.
host country.
home country.
free-trade zone.
13
The United States conducts trade with more than ____ countries.
10
50
100
180
14
The difference between a country's total exports and total imports is called the
foreign debt.
all of the above are correct.
balance of payments.
balance of trade.
15
It is possible for the United States to have a trade surplus with one country and a trade deficit with another.
False
True
16
About how many U.S. jobs depend on international business?
1 out of 6
1 out of 10
1 out of 4
1 out of 2
17
Which of the following is NOT a goal of the World Trade Organization?
lowering tariffs.
helping poor countries with economic growth.
enforcing free-trade agreements between members.
strengthening import quotas.
18
What is the value of 1 pound in U.S. dollars if 50 pounds costs $87.50?
$2.25
$2.00
$1.75
$1.50
19
A tax that a government places on certain imported products is called a (n)
embargo
divestiture
tariff
quota
20
What is a free-trade zone?
A stage in economic growth where international trade is advantageous.
A duty-free area for product import, storage, and assembly.
An area for trading products without monetary exchange.
A point in a product's life cycle when the government permits global sales.
21
Selling the right to use some intangible property for a fee or royalty is called
franchising.
licensing.
a free trade agreement.
a joint venture.
22
Today it is difficult to define economies in terms of national borders.
False
True
23
This international trade organization was created in 1944 to provide loans for rebuilding after World War II.
World Bank.
International Monetary Fund.
European Union.
North Atlantic Treaty Organization.
24
A country can have an absolute advantage in only one area.
True
False
25
Countries focused on agriculture typically offer better goods and services to their citizens.
True
False
26
The key factors that affect a country's level of economic development are
democrats and republicans.
government system, political instability, and trade barrriers.
literacy level, technology, and agricultural dependency.
religion, traditions, and customs.
27
Goods and services sold to other countries are called
imports
contraband
exports
tariffs
28
Which of the following counties has an absolute advantage in coffee production?
Colombia
Ethiopia
Mexico
Brazil
29
Which of the following is NOT a cultural / social factor that affects international business?
climate.
religion.
language.
values.
30
The making, buying, and selling of goods and services within a country is called
d. world trade.
b. domestic business.
a. international business.
c. importing.
