Business Principles Ch. 3 Test

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

• False

• True

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

• True

• False

If a country exports more than it imports, it has a trade surplus.

• True

• False

The value of currency in one country compared with the value in another is called the interest rate.

• True

• False

An economy that is largely involved in agriculture is generally unable to provide its citizens with a large number of high-quality products.

• True

• False

A country’s culture, traditions, and religion can sometimes act as informal trade barriers.

• True

• False

In a free-trade zone, member countries agree to remove duties and trade barriers on products traded among them.

• True

• False

Multinational companies sometimes control a country’s political power.

• True

• False

Franchising is selling the right to use a trademark or brand name for a fee or royalty.

• True

• False

One goal of the World Trade Organization is to eliminate import quotas.

• True

• False