Chapter 3 Business Essentials Review

Which of the following would be an example of international business?

• A farmer in Kansas using equipment made in Ohio

• A restaurant in Kansas City serving Italian food

• A sales staff in Texas representing a foreign producer

• A retail store in New York selling craft items from local artists

Which of the following would be an example(s) of domestic business?

• A farmer in Kansas using equipment made in Ohio

• A retail store in Kansas City that sells products made in India

• A sales staff in Texas representing a foreign producer

• A retail store in New York selling craft items from local artists

When a country's imports exceed its exports, there is a trade

• surplus

• balance

• deficit

• exchange

When a country's exports exceed its imports, there is a trade

• surplus

• balance

• deficit

• exchange

The value of a country's currency is likely to decline as a result of

• higher inflation

• higher interest rates

• a trade surplus

• a favorable balance of payments

Infrastructure is a significant factor that affects the economic development of a country.

• True

• False

An informal trade barrier is created by government action.

• True

• False

A country that wishes to enhance international trade activities would most likely use

• a tariff

• a common market

• an embargo

• a quota

Religion is an element of the ____ component of the international business environment.

• geographic

• economic

• cultural

• political

Is foreign debt the amount of money that other countries owe the United States?

• Yes

• No