Ch 3 - Foundations Review

Amount of money a country owes to other countries

• foreign debt
• foreign deficit
• foreign trade
• balance of payments

Value of a country's currency in comparison to another's

• balance of trade
• balance of payments
• exchange rate
• world trade

When a country sends out more money that it's bringing in.

• unfavorable balance of payments
• favorable balance of payments
• unfavorable balance of trade
• favorable balance of trade

International trade organization created in 1944 providing loans to rebuild after WWII

• World Trade Organization
• World Bank
• International Monetary Fund
• none of the above

Restriction of free trade

• unfavorable balance of trade
• foreign debt
• trade deficit
• trade barrier

T/F:  The world can be described as one giant economy

• true
• false

If the value of a country's currency is rising or constant, there is a:

• unfavorable balance of trade
• favorable balance of trade
• unfavorable balance of payments
• favorable balance of payments

T/F: A country can have a trade surplus with one country and trade deficit with another.

• true
• false

T/F: All nations of the world use the same banking system

• true
• false

Agreement among 2 or more countries to remove duties and trade barriers on products traded

• joint venture
• free-trade agreement
• comparative advantage
• absolute advantage