intro to business(retake) Chapter 3

Which of the following tends to discourage international trade?

Embargo

The amount a country owes to other countries is called

Foreign Debt

company is an organization that does business in several countries. 

Multi national

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

Balance of Payment

Which of the following situations represents an absolute advantage?

Honduras in banana production

An economy that is largely involved in agriculture is generally unable to provide its citizens with a large number of high-quality products. 

True

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

True

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

True

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

Milk

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

True

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

False

Imports

Items bought from other countries.

Tarrif

A tax that a government places on certain imported products.

trade deficit

Occurs when a country buys more than it sells.

Quota

A limit on the quantity of a product that may be imported or exported.

Absolute Advantage

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

Interest Rate

The cost of using someone else's money.

Embargo

completely prohibiting the import or export of a product.

Exports

items sold to other countries.

comparative advantage

exists when a country specializes in the production of a good or service at which it is relatively more efficient.

Trade Surplus

Occurs when a country sells more than it buys.

The three main factors that affect currency exchange rates among countries are the country's balance of payments, economic conditions, and

Political Stability

MNC's sometimes control a country's political power.

True

Domestic business refers ro business activities needed for creating, shipping, and selling goods across national borders.

False

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

True

The three key effects on a country's level of economic development are technology, and agricultural dependence, and …

Literacy Level

Infrastructure refers to a country's 

transportation, communication, and utility systems

Which of the following is an example of  global strategy?

The formula for Coca-Cola is the same no matter where in the world it is sold.

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

a joint venture

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

False

This group helps maintain an orderly system of world exchange rates

International Monetary Fund

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

lower U.S. inflation

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

Balance of trade

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

False

Danielle's company is expanding into Korea and has asked her to research the language, customs, and values of the Korean people. Which aspect of the international business environment is Danielle investigating?

cultural influences