Intro to Business Chapter 2 Summative Retake

When a government puts a limit on imports it is called a

• quota

• embargo

• tariff

Which of the following scenarios is likely to cause the value of a country's currency to rise

• prolonged inflation

• higher interest rate

• sudden change in government

• increased demand for the nation's products and currency

No countries limit the amount of money their citizens can take out of the country when they travel

• TRUE

• FALSE

A country in which a multinational company is based is

called the

• host

• home

• headquarters

• economic hub

Foreign _________________ is the amount a country owes to other countries

Licensing

• has a high financial investment, so the potential financial return is often high

• typically has a low financial return and investment

• typically is risky for a company

• has a low financial investment, so the potential financial return is often high

The United States conducts trade with more than ___________ countries

• 10

• 160

• 100

• 250

The cost for borrowing money is called

Items other countries by for the US are called

What country has an absolute advantage in coffee

• Saudi Arabia

• Ecuador

• Brazil

• Mexico