2nd quarter test review

The making, buying, and selling of goods and services within a country is called

• International business

• World trade

• Importing

• Domestic business

The United States conducts trade with more than ___ countries

• 10

• 50

• 100

• 180

Which of the following countries has an absolute advantage in coffee

• United States

• Saudi Arabia

• Brazil

• Ireland

Which of the following scenarios is likely to cause the value of a country’s currency to rise?

• Prolonged inflation

• Sudden change in government

• Increased demand for the nations products and currency

• Higher interest rates

Which of the following is NOT a cultural/social factor that affects international business?

• Language

• Religion

• Values

• Climate

The key factors that affect a country’s level of economic development are

• Government system, political stability, and trade barriers

• Literacy level, technology, and agricultural dependency

• Religion, traditions, and customs

• Location, climate, and natural resources

A tax that a government places on certain imported products is called a

• Quota

• Embargo

• Tariff

• Divestiture

A limit that a government places on the quantity of a product that may be exported or imported during a given period is called a

• Tariff

• Quota

• Luxury tax

• Trade surplus

A country in which multinational company conducts business activities is called the

• Home country

• Host country

• Economic community

• Free trade zone

Selling the right to use some intangible property for a fee or royalty is called

• A joint venture

• Franchising

• A free trade agreement

• Licensing