PHS PBMF Chapter 3 Test 2020

An informal trade barrier is created by government actions

• True

• False

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

• 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

A country may set a quota to protect one of its industries from too much competition

• True

• False

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

• True

• False

The amount the country owes to other countries is called?

• trade surplus

• foreign debt

• trade deficit

• balance of payments

The culture, traditions, and religion of a country can create __________ trade barriers

• formal

• informal

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

• lower interest rates

• higher inflation

• trade surplus

• favorable balance of payments

Religion is an element of the _________ component of the international business environment

• Geographic

• Political

• Economic

• Cultural