POB CHAPTER 3: BUSINESS IN THE GLOBAL ECONOMY

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

• international business
• world trade
• importing
• domestic business

Goods and services sold to other countries are called _____.

• exports
• tariffs
• imports
• contraband

The United States conducts trade with over _____ countries.

• 10
• 50
• 100
• 180

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

• the United States
• Saudi Arabia
• Brazil
• Ireland

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

• 1 out of 2
• 1 out of 4
• 1 out of 6
• 1 out of 10

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

• foreign debt
• balance of trade
• trade surplus
• trade deficit

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

• balance of payments
• balance of trade
• foreign debt
• all of the answers given are correct

Suppose you want to make a currency exchange for 50 British pounds.  You must exchange $87.50 U.S. dollars to get the 50 pounds.  What is the value of 1 pound today, in relation to the U.S. dollar?

• $1.50
• $1.75
• $2.00
• $2.25

Which of the following scenarios is likely to cause the value of a country's currency to rise?

• prolonged inflation
• sudden change in government
• increased demand for the nation's products and currency
• higher interest rates

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

• language
• religion
• values
• climate