Principles of Business - Chapter 3

Question 1

Licensing

Accepted Answer

low financial investment so potential return is often low

Question 2

Countries that devote most of their economies to agriculture usually provide better goods& Svcs

Accepted Answer

False

Question 3

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

Accepted Answer

Debt

Question 4

It is possible for the U.S. to have trade surplus with 1 country & a trade deficit with another

Accepted Answer

True

Question 5

A country can have an absolute advantage in only 1 area.

Accepted Answer

False

Question 6

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

Accepted Answer

licensing

Question 7

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

Accepted Answer

tariff

Question 8

A limit a gov't places on quantity of a product that may be exported or imported during a time.

Accepted Answer

quota

Question 9

When a gov't completely stops the import or export of a product, it is called

Accepted Answer

Embargo

Question 10

Common Market members

Accepted Answer

common external duty on product being importd from countries

Question 11

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

Accepted Answer

Host Country

Question 12

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

Accepted Answer

strengthening import quotas

Question 13

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

Accepted Answer

climate

Question 14

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

Accepted Answer

Domestic Business

Question 15

Accepted behaviors, customs & values of a society are referred as

Accepted Answer

Culture

Question 16

Situation when a company specializes in the production of good/service which is more efficient

Accepted Answer

Comparative Advantage

Question 17

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

Accepted Answer

True

Question 18

Some countries limit the amount of money that citizens can take out country when traveling.

Accepted Answer

True

Question 19

The difference between the amount of money that comes into a country & the amount that goes out

Accepted Answer

Balance of Payments

Question 20

The U.S. conducts trade with more than ______ countries.

Accepted Answer

180

Question 21

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

Accepted Answer

Franchise

Question 22

About how many U.S. jobs depend on international business?

Accepted Answer

1 out of 6

Question 23

Items bought from other countries are called

Accepted Answer

imports

Question 24

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 & currency

Question 25

Which of the following countries has an absolute advantage to coffee production?

Accepted Answer

Brazil

Question 26

_________ rates are the cost of using someone else's money.

Accepted Answer

Interest

Question 27

Key factors that affect a country's level of economic development are

Accepted Answer

literacy level, technology & agricultural dependency

Question 28

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

Accepted Answer

True

Question 29

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

Accepted Answer

False

Question 30

Goods and services sold to other countries are called

Accepted Answer

Exports

Question 31

International trade organization was created in 1944 to provide loan for rebuilding after WWll

Accepted Answer

World Bank

Question 32

Without foreign trade, all of the items you buy would cost less b/c no shipping from other land

Accepted Answer

False

Principles of Business - Chapter 3

Questions 32

Principles of Business - Chapter 3

Questions 32