Ch 3 Business in the Global Economy

A company is planning to sell the rights to its brand name for use in other countries. This is an example of a(n)

• joint venture.

• trade agreement.

• franchise.

• licensing agreement.

The international organization that settles trade disagreements and enforces free-trade agreements is the

• WTO

• United Nations

• IMF

• World Bank

Who provides technical capital and technical help to private businesses in nations with limited resources?

• IDA

• IFC

• IMF

• WTO

Which of the following is NOT a franchise business?

• McDonald's

• Burger King

• Wendy's

• Garzelli's

The World Bank was created in order to provide loans to help rebuild after

• World War I

• Vietnam War

• World War II

• Cold War

When a country's imports exceed its exports, this is a trade

• deficit.

• exchange.

• surplus.

• balance.

The value of a country's currency is likely to decline as a result of

• lower interest rates

• a trade surplus

• a favorable balance of payments

• higher inflation

Which countries are NOT a part of the North American Free Trade Agreement (NAFTA)?

• Canada

• Mexico

• United States

• Panama

The amount a country owes to other countries is called

• national debt.

• foreign debt.

• trade deficit.

• balance of payments.

The three key effects on a country’s level of economic development are _________, technology & agricultural dependency

• location

• customs

• literacy level

• religion