Bus. Mgt. Chapter 3

Exists when a country can produce a good or service at lower cost than other countries

• Absolute Advantage

• Comparative Advantage

• Negative Advantage

• Positive Advantage

Situation in which a country specializes in the production of a good or service

• Trade Surplus

• Absolute Advantage

• Comparative Advantage

• Positive Advantage

Goods and services sold or sent out to other countries are which of the following?

• Imports

• International Trade

• Exports

• Trade Deficit

A favorable balance of trade is which of the following?

• Imports > Exports

• Exports > Imports

An unfavorable balance of trade is which of the following?

• Imports > Exports

• Exports > Imports

One financial thing a business person has to be aware of as goods are exchanged is...

• Foreign Exchange Rate

• Trade Surplus

• CPI

• Balance of Payments

Political Instability has which effect on a country's currency?

• Strengthens

• Weakens

• No Effect

• All of the provided answers

Climate is categorized into which of the following business environment elements?

• Geographic

• Economic

• Cultural

• Political & Legal Factors

Language is categorized into which of the following business environment elements?

• Geographic

• Economic

• Cultural

• Political & Legal Factors

Religion is categorized into which of the following business environment elements?

• Geographic

• Economic

• Cultural

• Political & Legal Factors