Chapter 3 Study Guide Review

Which of the following would be an example of international business?

• A farmer in Iowa using U.S produced equipment

• A restaurant in Chicago offering Asian menu items.

• A sales staff in South Carolina representing a foreign producer.

• A retail store in Oregon selling craft items from local artists.

When a country's imports exceed its exports, this is a trade

• surplus

• exchange

• deficit

• balance

The value of a country's currency is likely to decline as a result of

• higher inflation

• a trade surplus

• lower interest rates

• a favorable balance of payments

Items bought from other countries are

• Imports

• Balance of trade

• Exports

• Exchange rate

Which type of business happens when buying and selling crosses borders

• Domestic business

• None ya business

• International business

Without foreign trade many of the things we buy would cost more or not be available

• True

• False

Goods and services sold to other countries are called

• Imports

• Balance of trade

• Exports

• Tariffs

The difference between a country's total exports and total imports is called

• Balance of Trade

• Balance of Payments

If a country exports more than it imports it has a

• trade surplus

• trade balance

• trade deficit

• trade wind

If a country imports more than it exports it has a

• Trade surplus

• Trade balance

• Trade deficit

• Trade wind