Intro to Business Chapter 10 Review

Which of the following is NOT a type of trade barrier?

• quota

• embargo

• tariff

• tourism

How can countries sell what they produce best so that they can buy the products they need from other countries?

• by specializing

• by using human resources only

• by importing more

• by diversifying

When the value of a country's currency goes up compared to another country's, it has this.

• unfavorable exchange rate

• balance of trade

• favorable exchange rate

• embargo

Why would a country choose to lower the value of its currency?

• to import more goods

• to balance trade

• to compete unfairly

• to bring in more business

Between 1980 and 2000, the United States ran up a trade deficit of about $330 billion because of this.

• unfair foreign trade practices

• competition from other countries

• free trade

• protectionism

A country can have an unfavorable balance of trade with one country and a favorable balance of trade with another.

• True

• False

The United States is so rich in resources, it doesn't need to trade with other countries.

• True

• False

If no one wants to buy products from a country, the value of its currency decreases.

• True

• False

Imports are goods and services that one country sells to another country.

• True

• False

Quotas and tariffs are type of trade barriers.

• True

• False