Intro to Business - Chapter 3

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

• International Business

• World Trade

• Importing

• Domestic Business

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

• The United States

• Saudi Arabia

• Brazil

• Ireland

Goods and services sold to other countries are called:

• Exports

• Tariffs

• Imports

• Contraband

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

• Foreign Debt

• Balance of Trade

• Trade Surplus

• Trade Deficit

Difference between the amount of money that comes into a country and the amount that goes out:

• Balance of Payments

• Balance of Trade

• Foreign Debt

• All of the Above

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

The key factors that affect a country's level of economic development are:

• Government system, political stability, and trade barriers

• Literacy level, technology, and agricultural dependency

• Religion, traditions, and customs

• Location, climate, and natural resources

A tax that a government places on certain imported products is called a(n):

• Quota

• Embargo

• Tariff

• Divestiture

A limit that a government places on the quantity of a product that may be exported or imported:

• Tariff

• Quota

• Luxury Tax

• Trade Surplus