Ch. 5 Review

Goods, services, and capital brought into a country from outside its borders is called:

• Deficit

• Surplus

• Export

• Import

If you have a negative balance of trade (exports vs. imports) it means:

• There is more money coming in than going out

• There is more money going out than coming in

A limit on the amount of product imported into a country during a specific amount of time is called:

• trade barriers

• quota

• trade sanctions

A government order that prohibits trade with a foreign country is called:

• Embargo

• Tarrif

• Quota

Goods, services, and capital produced in a country and sold outside of its borders is called:

• Deficit

• Export

• Import

• Surplus

When a country exports more than it imports it is called:

• Surplus

• Deficit

Embargoes that affect only certain goods are called:

• Trade barrier

• Tariff

• Trade Sanctions

A business that offers the right to sell a company's goods or services in a specific area is called:

• Licensing

• Franchise

• Multinational Corporation

• Joint Venture

This exists when a country can produce goods and services more efficiently and at a lower cost than another country is called:

• Advantage

• Absolute Advantage

• Comparative Advantage

The cost to convert one currency into another is called:

• Customs

• Foreign Exchange Rate

• Currency