Intro to Business Ch. 3

Question 1

Without foreign trade, everything you buy would cost less, because they would not need to be shipped here from elsewhere

Accepted Answer

False

Question 2

50 British pounds = $87.50 U.S. dollars to get the 50 pounds. What is the value of 1 pound in relation to the US dollar?

Accepted Answer

$1.75

Question 3

A joint venture is an agreement among two or more countries to remove duties and trade barriers on products traded

Accepted Answer

False

Question 4

A country in which a multinational company conducts business activities is called the

Accepted Answer

host country

Question 5

This international trade organization was created in 1944 to provide loans for rebuilding after World War II

Accepted Answer

World Bank

Question 6

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

Accepted Answer

True

Question 7

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

Accepted Answer

False

Question 8

If a nation imports more than it exports, it has a trade ____________________.

Accepted Answer

deficit

Question 9

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

Accepted Answer

Brazil

Question 10

Goods and services sold to other countries are called

Accepted Answer

exports

Question 11

A nation’s transportation, communication, and utility systems is referred to as its ____________________.

Accepted Answer

infrastructure

Question 12

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 13

The United States conducts trade with more than ____________________ countries.

Accepted Answer

180

Question 14

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

Accepted Answer

embargo

Question 15

International business is frequently referred to as world or ____________________ trade

Accepted Answer

foreign

Question 16

What is a free-trade zone?

Accepted Answer

products can be imported duty-free and then stored, assembled, or used

Question 17

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

Accepted Answer

balance of payments.

Question 18

When a country has a favorable balance of payments, the value of its currency is usually constant or rising

Accepted Answer

True

Question 19

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

Accepted Answer

strengthening import quotas

Question 20

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

Accepted Answer

domestic business

Question 21

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

Accepted Answer

licensing.

Question 22

A limit that a government places on the quantity of a product that may be exported or imported during a given period is

Accepted Answer

quota

Question 23

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

Accepted Answer

franchise

Question 24

A trade ____________________ is a restriction to free trade.

Accepted Answer

barrier

Question 25

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

Accepted Answer

exchange

Question 26

a country specializes in the production of a good or service at which it is relatively more efficient is called _____

Accepted Answer

comparative advantage

Question 27

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

Accepted Answer

tariff

Question 28

Licensing

Accepted Answer

has a low financial investment so the financial return is often low.

Question 29

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

Accepted Answer

False

Question 30

The key factors that affect a country’s level of economic development are

Accepted Answer

literacy level, technology, and agricultural dependency.

Question 31

Countries that devote most of their economies to agriculture usually provide more goods and services for their citizens.

Accepted Answer

False

Question 32

A society's culture has a strong influence on business activities. Which of these is an example of a cultural influence?

Accepted Answer

religion

Question 33

Items bought from other countries are called ____________________.

Accepted Answer

imports

Question 34

Today it is difficult to define economies in terms of national borders

Accepted Answer

True

Question 35

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

Accepted Answer

debt

Question 36

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

Accepted Answer

unfavorable

Question 37

It is possible for the United States to have a trade surplus with one country and a trade deficit with another

Accepted Answer

True

Question 38

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

Accepted Answer

climate

Question 39

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

Accepted Answer

culture

Question 40

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

Accepted Answer

balance of trade.

Question 41

____________________ rates are the cost of using someone else’s money

Accepted Answer

interest

Question 42

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

Accepted Answer

multinational

Question 43

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

Accepted Answer

True

Question 44

Common market members

Accepted Answer

a common external duty on products being imported from nonmember countries

Intro to Business Ch. 3

Questions 44

Intro to Business Ch. 3

Questions 44