Quiz on International Business

What is international business primarily concerned with?

• Only the import of goods

• Trade of goods and services across national borders

• Local business operations

• Only the export of goods

Which of the following is NOT a benefit of international business?

• Stabilizes seasonal market fluctuations

• Reduces global market share

• Increases sales and profits

• Enhances domestic competitiveness

What is a tariff?

• A type of trade agreement

• A subsidy for domestic producers

• A tax on imported goods

• A limit on the amount of goods that can be imported

What is the purpose of a quota?

• To provide grants to domestic producers

• To increase the price of imported goods

• To eliminate all imports

• To lower the cost of production

Which of the following describes an embargo?

• A limit on imports

• A complete halt of trade with a country

• A subsidy for foreign goods

• A tax on exports

What is one reason countries block trade?

• To lower prices for consumers

• To increase competition

• To promote free trade

• To protect domestic industries

What does 'productive efficiency' refer to?

• The ability to produce goods at a lower cost

• The speed of production

• The number of goods produced

• The quality of goods produced

What is a revenue tariff designed to do?

• Limit imports

• Encourage exports

• Raise money for the government

• Protect domestic industries

Which of the following is a barrier to free trade?

• Technological advancements

• Globalization

• Subsidies

• Free trade agreements

What is one of the macro-scale factors driving globalization?

• Decreased technology use

• Reduced international cooperation

• Elimination of trade barriers

• Increased tariffs