Business Essentials - Ch. 3 Review

Shipping resources from the U.S. to China is an example of a(n):

• Import

• Quota

• Export

• Tariff

True or False: International Business refers to business activities needed for creating, shipping, and selling goods/services across state borders.

• True

• False

___________ advantage exists when a country can produce a good or service at a lower cost than other countries

• Absolute

• Comparative

• Relative

• Complete

True or False: Domestic business is the making, buying, and selling of goods/services in the United States

• True

• False

The U.S. bringing in oil from Saudi Arabia is an example of a(n)

• Quota

• Embargo

• Export

• Import

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

• Balance of Payments

• Balance of Trade

• Trade Surplus

• Negative/Unfavorable balance

True or False: According to the chart, America's Balance of trade with Japan is a Trade Deficit

• True

• False

When a country is receiving more money in a year than it is paying out, it has a ______________ balance of payments (Choose all that apply)

• Favorable

• Unfavorable

• Positive

• Negative

The Brazilian real is worth 32 cents in United States dollars. This is an example of the what?

• Currency Transfer Rate

• Balance of Payments Rate

• Trading Rate

• Exchange Rate

Which of the following are factors that can affect currency exchange rates? (Choose all that apply)

• Balance of Payments

• Economic Conditions

• Business Acquisitions by the Govt.

• Political stability