Business Management- Chapter 9 Test Review

Foreign investment occurs when firms from one country build new plants in another country.

• True

• False

Goods and services that are sold to other countries are called exports.

• True

• False

A country earns revenue by imposing tariffs on foreign goods.

• True

• False

When dumping occurs, the price of the goods in a foreign market drops.

• True

• False

Tariffs have a tendency to lower the price of foreign products.

• True

• False

Nontariff barriers are designed to protect foreign producers.

• True

• False

Trading blocs have discouraged global trade and investment.

• True

• False

When sales at home begin to lag, American firms have shipped their products overseas.

• True

• False

When more money leaves a country that comes in, a balance of payments surplus occurs.

• True

• False

A country with a prolonged trade surplus may find it difficult to pay its bills.

• True

• False