WorksheetsPOB CHAPTER 3: BUSINESS IN THE GLOBAL ECONOMY
Total questions: 35
Worksheet time: 18mins
Name
Class
Date
1.
The United States conducts trade with over _____ countries.
a)
10
b)
50
c)
100
d)
180
2.
Which of the following countries has an absolute advantage in coffee production?
a)
the United States
b)
Saudi Arabia
c)
Brazil
d)
Ireland
3.
Goods and services sold to other countries are called _____.
a)
exports
b)
tariffs
c)
imports
d)
contraband
4.
About how many U. S. jobs depend on international business?
a)
1 out of 2
b)
1 out of 4
c)
1 out of 6
d)
1 out of 10
5.
The difference between a country's total exports and total imports is called the _____.
a)
foreign debt
b)
balance of trade
c)
trade surplus
d)
trade deficit
6.
The difference between the amount of money that comes into a country and the amount that goes out of it is called the _____.
a)
balance of payments
b)
balance of trade
c)
foreign debt
d)
all of the answers given are correct
7.
Suppose you want to make a currency exchange for 50 British pounds. You must exchange $87.50 U.S. dollars to get the 50 pounds. What is the value of 1 pound today, in relation to the U.S. dollar?
a)
$1.50
b)
$1.75
c)
$2.00
d)
$2.25
8.
Which of the following scenarios is likely to cause the value of a country's currency to rise?
a)
prolonged inflation
b)
sudden change in government
c)
increased demand for the nation's products and currency
d)
higher interest rates
9.
Which of the following is NOT a cultural/social factor that affects international business?
a)
language
b)
religion
c)
values
d)
climate
10.
The key effects on a country's level of eic d evelopment are _____.
a)
government system, political stability, and trade barriers
b)
literacy level, technology, and agricultural dependency
c)
religion, traditions, and customs
d)
location, climate, and natural resources
11.
A tax that a government places on certain imported products is called a(n) _____.
a)
quota
b)
embargo
c)
tariff
d)
divestiture
12.
A limit that a government places on the quantity of a product that may be exported or imported during a given period is called a
a)
tariff
b)
quota
c)
luxury tax
d)
trade surplus
13.
What is a free-trade zone?
a)
A selected area where products can be imported duty-free and then stored, assembled, or used in manufacturing.
b)
A selected area where importers and exporters can trade or exchange products without money changing hands.
c)
A specific point in the growth of a country's economy where trade with other nations becomes economically advantageous.
d)
A specific point in a product''s life cycle at which the government allows the manufacturer to freely sell the product in the global marketplace.
14.
Common market members _____.
a)
impose high tariffs on one another's products
b)
produce and sell exactly the same products.
c)
prohibit one another's workers from moving freely across borders.
d)
have a common external duty on products being imported from nonmember countries.
15.
A country in which an MNC places business activities is called the _____.
a)
home country
b)
host country
c)
economic community
d)
free-trade zone
16.
Selling the right to use some intangible property for a fee or royalty is called _____.
a)
a joint venture
b)
franchising
c)
a free-trade agreement
d)
licensing
17.
Which of the following is NOT a goal of the World Trade Organization?
a)
lowering tariffs
b)
strengthening import quotas
c)
helping poor countries with economic growth
d)
enforcing free-trade agreements between members
18.
Licensing
a)
is generally a very risky way for a company to expand into other countries.
b)
is generally a very risky way for a company to expand into other countries.
c)
has a low financial investment, so the potential financial return is often low.
d)
all of the answers given are correct
19.
This international trade organization was created in 1944 to provide loans for rebuilding after World War II.
a)
National Atlantic Treaty Organization
b)
International Monetary Fund
c)
European Union
d)
World Bank
20.
The situation in which a country specializes in the production of a good or service at which it is relative more efficient is called _____ advantage.
a)
absolute
b)
comparative
c)
disabled
d)
disabled
21.
A negative or _____ balance of payments occurs when a country sends out more money than it brings in.
a)
favorable
b)
unfavorable
c)
positive
d)
absolute
22.
The accepted behaviors, customs, and values of a society are referred to as _____.
a)
morals
b)
values
c)
economic
d)
culture
23.
A nation's transportation, communication, and utility systems is referred to as its _____.
a)
infrastructure
b)
balance of trade
c)
balance of payments
d)
trade deficit
24.
A trade _____ is a restriction to free trade.
a)
deficit
b)
surplus
c)
barrier
d)
balance
25.
When a government completely stops the import or export of a product, it is called a(n) _____.
a)
embargo
b)
quota
c)
tariff
d)
trade barrier
26.
A(n) _____ company is an organization that does business in several countries.
a)
international
b)
global
c)
infrastructure
d)
multinational
27.
A(n) _____ is the right to use a company name or business process in a specific way.
a)
license
b)
franchise
c)
copyright
d)
trademark
28.
_____ advantage exists when a country can produce a good or service at a lower cost than other countries.
a)
Absolute
b)
Balanced
c)
Comparative
d)
Direct
29.
A country can have an absolute advantage in only one area.
a)
True
b)
False
30.
Without foreign trade, all of the items you buy would cost less, because they would not need to be shipped here from other lands.
a)
True
b)
False
31.
Because of international trade, all nations of the world use the same banking system.
a)
True
b)
False
32.
Countries that devote most of their economies to agriculture usually provide more and better goods and services for their citizens.
a)
True
b)
False
33.
When a country has a favorable balance of payments, the value of its currency is usually constant or rising.
a)
True
b)
False
34.
The making, buying, and selling of goods and services within a country is called _____.
a)
international business
b)
world trade
c)
importing
d)
domestic business
35.
The _____ rate is the value of currency in one country compared with the value in another.
a)
interest
b)
exchange
c)
absolute
d)
comparative
100 %
