International Trade Quiz 3

Which of the following is NOT an international trade barrier?

• Economic barriers

• Technological barriers

• Social and cultural barriers

• Domestic production barriers

Ethical, legal, and political barriers in international trade include:

• Differences in spoken and written language

• Lacking technological infrastructure

• International laws and changing political climates

• Economic development and exchange rates

Social and cultural barriers in international trade involve:

• Economic factors and infrastructure

• Differences in body language and personal space

• Technological infrastructure and advancements

• International laws and ethical values

How do technological barriers impact international trade?

• They create differences in spoken and written language

• They influence economic factors and exchange rates

• They affect a country's technological infrastructure and access to technology

• They change international laws and political climates

The impact of lacking technological infrastructure on international trade includes:

• Limited access to technology and communication

• Differences in body language and personal space

• Changes in ethical values and political climates

• Increased economic development and exchange rates

What is the definition of international business?

• The buying, selling, and trading of goods and services across national boundaries

• The transferring of manufacturing tasks to countries with lower costs

• A monopoly where a country is the only source of an item

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

Companies engage in international trade mainly to:

• Increase social and cultural exchange

• Overcome technological barriers

• Obtain raw materials and goods that are otherwise unavailable or cheaper

• Promote political stability and international relations

How do falling political barriers and new technology affect international trade?

• They create social and cultural differences

• They limit access to raw materials and goods

• They make it possible for more companies to sell products overseas

• They increase the cost of labor and supplies

Why do nations and businesses engage in international trade?

• To increase political barriers and limit technological advancements

• To avoid social and cultural exchange

• To obtain raw materials and goods and/or sell products overseas

• To create a trade deficit and decrease economic growth

What is outsourcing in international trade?

• The purchase of goods and services from foreign markets

• The sale of goods and services to foreign markets

• The transferring of manufacturing or other tasks to countries with lower costs

• A monopoly where a country is the only source of an item