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WorksheetsPrinciples of Business Chapter 3
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Today it is difficult to define economies in terms of national borders.
a)
True
b)
False
2.
A country can have an absolute advantage in only one area.
a)
True
b)
False
3.
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
4.
A nation with a trade surplus is said to have a favorable trade position.
a)
True
b)
False
5.
It is possible for the United States to have a trade surplus with one country and a trade deficit with another.
a)
True
b)
False
6.
Some countries limit the amount of money their citizens can take out of the country when they travel.
a)
True
b)
False
7.
Because of international trade, all nations of the world use the same banking system.
a)
True
b)
False
8.
When a country has a favorable balance of payments, the value of its currency is usually constant or rising.
a)
True
b)
False
9.
Countries that devote most of their economies to agriculture usually provide more and better goods and services for their citizens.
a)
True
b)
False
10.
A joint venture is an agreement among two or more countries to remove duties and trade barriers on products traded among them.
a)
True
b)
False
11.
The making, buying, and selling of goods and services within a country is called
a)
international business
b)
world trade
c)
imporing
d)
domestic business
12.
The United States conducts trade with more than ________ countries.
a)
10
b)
50
c)
100
d)
180
13.
Which of the following counties has an absolute advantage in coffee production?
a)
the United States
b)
Saudi Arabia
c)
Brazil
d)
Ireland
14.
Goods and services sold to other countries are called
a)
exports
b)
tariffs
c)
imports
d)
contraband
15.
A society's culture has a strong influence on business activities. Which of these is an example of a cultural influence?
a)
climate
b)
natural resources
c)
religion
d)
inflation
16.
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
17.
The difference between the amount of money that comes into a country and the amount that goes out is called the
a)
balance of payments
b)
balance of trade
c)
foreign debt
d)
all of these
18.
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
19.
Which of the following is NOT a cultural/social factor that affects international business?
a)
language
b)
religion
c)
values
d)
climate
20.
A country in which a multinational company conducts business activities is called the
a)
home country
b)
host country
c)
economic community
d)
free trade zone
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