Business & Tech Chp 3

Front

Absolute advantage exists when a country is able to produce a good or a service

Back

at a lower cost than other countries.

Front

A nation has a trade surplus if

Back

the value of its exports is greater than the value of its imports.

Front

A high rate of inflation in a country tends to increase demand for that nation's currency.

Back

False

Front

A nation with a favorable balance of payments sends more money to other nations than it receives from them.

Back

False

Front

The United States imports a large share of the natural resources used by its industries. True or False?

Back

True

Front

In international business transactions, businesses should consider the exchange rate, which is the value of one currency compared with

Back

the value of currency from a different nation.

Front

Common markets are groups of nations that eliminate trade barriers and encourage investment in each other's countries. True or False?

Back

True

Front

__________ is making, buying, and selling goods and services within a country.

Back

Domestic Business

Front

Quotas may be set by a country to protect one of its industries from too much foreign competition.

Back

True

Front

Comparative advantage is a situation in which a nation produces products that it:

Back

is able to produce at which it is relatively more efficient.