Chapter 3

Domestic business refers to business activities needed for creating, shipping, and selling goods across national borders

• True

• False

Without foreign trade, many things you buy would cost more or not be available

• True

• False

If a country exports more than it imports, it has a trade surplus

• True

• False

The value of the currency in one country compared with the value in another is called interest rate

• True

• False

An economy that is largely involved in agriculture is generally unable to provide its citizens with a large number of high-quality products

• True

• False

With a free-trade zone, member countries agree to remove duties and trade barriers on products trade among them

• True

• False

A country's culture, traditions, and religion can sometimes act as informal trade barriers

• True

• False

multinational companies sometimes control a country's political power

• True

• False

Franchising is selling the right to use a trademark or brand name for a fee or royalty

• True

• False

One goal of the World Trade Organization is to eliminate import quotas

• True

• False