Chap 6 & 7 - Global Business Quiz

Below are all characteristics of money EXCEPT:

• Durable

• Accepted

• Abundant Supply

• Limited Supply

A country has a favorable balance of payments if the total flow of money going out of a country is greater than the total flow of money coming into the country.

• True

• False

Of the following business transactions, the only one that describes an importing activity is

• none of the above

• a restaurant food supplier in Japan ships sushi ingredients to a restaurant in Turkey

• a wholesaler in Brazil packs goods for shipment to Liberia.

• a retailer in Sweden receives goods from Mexico to sell in a chain of stores

A country with exports of $6 million and imports of $10 million has a

• trade surplus

• favorable balance of payments

• trade deficit

• unfavorable balance of payments

A company that arranges to ship goods to customers in other countries is a [blank]. Choose one option for each blank section.

• Import Specialist

• Freight Forwarder

• Logistics Manager

The exchange rate for a stable country with open exchange

• changes somewhat from day to day

• remains the same unless there is a political change

• none of the above

• is always based on the U.S. dollar

The World Bank has the major function of providing economic assistance to less-developed countries.

• True

• False

When money is being deposited for future use, it is being used as a

• medium of exchange

• store of value

• measure of value

• payment on account

The value of a country's currency would be increased by

• an unfavorable balance of trade

• higher interest rates

• lower inflation

• political instability

________ is the riskiest of the options to pay in an international finance transaction and is often required by first time buyers.

• cash in advance
• consignment

• letters of credit