Chapter 3 Test Review

The making, buying, and selling of goods and services within a country is called:

• International business

• World trade

• Importing

• Domestic business

The United States conducts trade with more than ______ countries:

• 10

• 50

• 100

• 180

Which of the following countries has an absolute advantage in coffee production?

• The United States

• Saudi Arabia

• Brazil

• Ireland

Goods and services sold to other countries are called:

• Exports

• Tariffs

• Imports

• Contraband

About how many U.S. jobs depend on international business?

• 1 out of 2

• 1 out of 4

• 1 out of 6

• 1 out of 10

The difference between a country’s total exports and total imports is called the:

• Foreign debt

• Balance of trade

• Trade surplus

• Trade deficit

The difference between the amount of money that comes into a country and the amount that goes out is called:

• Foreign debt

• Balance of payments

• Trade surplus

• Trade deficit

Which of the following scenarios is likely to cause the value of a country’s currency to rise?

• Prolonged inflation

• Sudden change in government

• Increased demand for the nation’s products and currency

• Higher interest rates

Which of the following is NOT a cultural/social factor that affects international business?

• Language

• Religion

• Values

• Climate

The key factors that affect a country’s level of economic development are:

• Government system, political stability, and trade barriers

• Literacy level, technology, and agricultural dependency

• Religion, traditions, and customs

• Location, climate, and natural resources