Chapter 3 Assessment Review

When a country can produce a good or service at a lower cost than other countries, they are said to have a (an)

• balance of trade

• absolute advantage

• balance of payments

• exchange rate

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

• True

• False

Without foreign trade, many things that you buy would cost more or possibly not be available at all.

• True

• False

Goods which are brought into a country are called

• imports

• exports

• balance of payments

• balance of trade

if a country exports more than in imports, it has a

• trade deficit

• trade surplus

• zero balance of payments

• none of the above

A country has an unfavorable balance of trade when it send out more money than it brings in.

• True

• False

If South Korea exports 28.6 billion dollars worth of goods and imports 39.2 billion dollars worth of goods, they have a trade surplus.

• True

• False

The value of a currency in one country compared with the value of another is called a (an)

• balance of trade

• balance of payment

• exchange rate

• trade surplus

Goods and services sold to other countries are called

• imports

• exports

• comparative advantage

Which of the following is NOT a factor that business must consider when doing business internationally.

• geographic

• cultural

• political

• percentage of elderly citizens

• economic