Principles of Business 9e Chapter 3

Front

Which of the following situations represents an absolute advantage? Saudi Arabia in fresh fish production, Honduras in banana production, Canada in rice production, Norway in orange and grapefruit production

Back

Honduras in banana production

Front

Which of the following products is NOT imported to the United States in any great quantity? milk , oil , coffee , silk

Back

milk

Front

The amount a country owes to other countries is called

Back

foreign debt

Front

Which of the following would likely cause the value of the dollar to RISE?
an increased U.S. trade deficit,
higher U.S. interest rates,
lower U.S. inflation,
Saudi Arabia doubles the price of the oil it sells the United States

Back

lower U.S. inflation

Front

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?

Back

cultural influences

Front

Infrastructure refers to a country’s transportation, communication, and utility systems

Back

transportation, communication, and utility systems

Front

Which of the following tends to discourage international trade? an embargo, a free-trade zone, a free-trade agreement, a common market

Back

an embargo

Front

Which of the following is an example of a global strategy? Options: Pizza Hut restaurants in Japan sell pizzas with squid toppings because squid is a popular Japanese food. The formula for Coca-Cola is the same no matter where in the world it is sold. Advertising for women’s underwear does not feature live models in many Muslim countries to avoid offending religious sensibilities. All of the above are global strategies.

Back

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

Front

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

Back

a joint venture

Front

This group helps maintain an orderly system of world exchange rates.

Back

International Monetary Fund