Intro to Business Chapter 3

The value of currency in one country compared with the value of another is called interest rate

A country's culture, traditions, and religion can sometimes act as informal trade barriers

Items bought from other countries

Occurs when a country sells more than it buys

Which of the following is an example of a global strategy

Exists when a country can produce a good or service at a lower cost then other countries

Without foreign trade, many things you buy would cost more or not be available

Which situation shows absolute advantage

Occurs when a country buys more than it sells

The cost of using someone else's money

A tax a government places on certain imported products

Economies in agriculture cannot provide citizens with a large number of quality products

The amount a country owes to other countries is called

If a country exports more than it imports, it has a trade surplus

An agreement between two or more companies to share a business project is called

Infrastructure refers to a country's

What aspect of international business environments does language customs and values belong to?

Items sold to other countries

Which of the following tends to discourage international trade?

Completely prohibiting the import or export of a product

Domestic Business is business activities needed for creating shipping & selling across borders

A limit on the quantity of goods that may be imported or exported

Franchising is selling the right to use a trademark or brand name for a fee or royalty

This group helps maintain an orderly system of world exchange rates

MNC's sometimes control a country's political power

One goal of the World Trade Organization is to eliminate import quotas

Which of the following would likely cause the value of the dollar to RISE

Exists when a country specializes in the production of a good or service and is more efficient

Which of the following is NOT imported to the United States in any great quantity?

With a free-trade zone, member countries agree to remove duties and trade barriers on products