Ch. 3 Review

True or False? Foreign debt is the amount of money that other countries owe the U.S.

• True

• False

True or False? If a country imports more than it exports, then it is experiencing a trade deficit.

• True

• False

True or False? A country's infrastructure refers to it's climate and natural resources.

• True

• False

True or False? Tariffs are used to restrict free trade.

• True

• False

True or False? The North American Free Trade Agreement includes Canada, the U.S., and Japan.

• True

• False

True or False? Licensing has a low financial investment.

• True

• False

Goods and services sold to other countries best describes ___________.

• Imports

• Exports

• Trade surplus

• Trade deficit

The difference between a country's total exports and total imports is called _____________.

• Balance of trade

• Balance of payments

• Trade surplus

• Trade deficit

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

• A farmer from Idaho using U.S. produced equipment

• A sales staff in Hawaii representing a foreign producer

• A restaurant in Foley offering Asian menu items

• A retail store in Oregon selling craft items

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

• surplus

• deficit

• exchange

• balance