International Business Quiz

The two principles that define buying and selling among companies in different countries are _______ and _______.

• Absolute Advantage, Comparative Advantage

• Supply and Demand

• Monopoly and Oligopoly

• Inflation and Deflation

Which principle describes a situation in which a country specializes in the production of the good or service with a lower opportunity cost?

• Absolute Advantage

• Comparative Advantage

• Competitive Advantage

• Cost Leadership

Goods and services brought into a country from somewhere else.

• Exports

• Trade Surplus

• Import

• Trade War

Define Balance of Trade

• The difference in value between a country's imports and exports

• The total value of goods and services produced in a country

• The amount of foreign currency held by a country's central bank

• The rate at which one currency is exchanged for another

When a country exports more than it imports they have a ?

• Balance of Trade

• Trade Deficit

• Trade Surplus

• Trade Barrier

Define the Balance of Payments.

• A list of all imports and exports of a country.

• A summary of a country's financial position at a specific point in time.

• A detailed report of a country's annual budget and expenditures.

• The difference between the amount of money that comes into a country and the amount that goes out.

Foreign Exchange Rate is defined as:

• The price of one currency in terms of another currency

• The interest rate charged by banks on loans

• The rate at which goods are exchanged in a barter system

• The percentage of tax levied on imported goods

Which of the following factors do NOT affect currency values?

• Balance of Payments

• Economic Conditions

• Political stability

• Geographical location

Define Commodity.

• A basic good used in commerce that is interchangeable with other goods of the same type.

• A luxury item that is unique and not interchangeable.

• A service provided by a company.

• A digital product sold online.

What are the 4 elements of the international business environment?

• Social, Legal, Environmental, Competative

• Geography, Cultural, Economic, Political

• Financial, Ethical, Demographic, Regulatory

• Geographical, Historical, Educational, Infrastructural