Principles of Business 9e Chapter 3

Which of the following situations represents an absolute advantage?

• Saudi Arabia in fresh fish production

• Honduras in banana production

• Canada in rice production

• Norway in orange and grapefruit production

Which of the following products is NOT imported to the United States in any great quantity?

• milk

• oil

• coffee

• silk

The amount a country owes to other countries is called

• national debt

• foreign debt

• trade deficit

• balance of paymenta

Which of the following would likely cause the value of the dollar to RISE?

• an increased U.S. trade deficit

• higher U.S. interest rates

• lower U.S. inflation

• Saudi Arabia doubles the price of the oil it sells the United States

Danielle’s company is expanding into Korea and has asked her to research the language, customs, and values of the Korean people. Which aspect of the international business environment is Danielle investigating?

• geography

• economic development

• political and legal concerns

• cultural influences

Infrastructure refers to a country’s

• educational system

• system of local government

• transportation, communication, and utility systems

• legal system

Which of the following tends to discourage international trade?

• an embargo

• a free-trade zone

• a free-trade agreement

• a common market

Which of the following is an example of a global strategy?

• Pizza Hut restaurants in Japan sell pizzas with squid toppings because squid is a popular Japanese food.

• The formula for Coca-Cola is the same no matter where in the world it is sold.

• Advertising for women’s underwear does not feature live models in many Muslim countries to avoid offending religious sensibilities.

• All of the above are global strategies.

An agreement between two or more companies to share a business project is called

• licensing

• franchising

• a proprietorship

• a joint venture

This group helps maintain an orderly system of world exchange rates.

• International Monetary Fund

• World Trade Organization

• World Bank

• European Union