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Ch. 3 Test Review - International Business

Total questions: 16

Worksheet time: 8mins

Name
Class
Date
1.

Of all the factors that are important to doing business, geography is NOT important to doing business

a)

True

b)

False

2.

A trade deficit means....

a)

your country imports less than it exports

b)

your country exports less that it imports

c)

your country exports more than it imports

3.

Each of the following will have an important impact on a nation's economic conditions EXCEPT:

a)

the nation's capital resources

b)

the language spoken by its workers

c)

the literacy rates and training of its workers

d)

the types of technology used by its workers

4.

A nation's transportation, communication, and utility systems are part of its ____________.

a)

scientific resources

b)

natural resources

c)

infrastructure

d)

human resources

5.

Domestic business is defined as the making, buying, and selling of goods and services __________ a country.

a)

within

b)

outside

6.

Trade barriers can include _________, tariffs, and embargos.

a)

bans

b)

quotas

c)

limitations

7.

An embargo is which of the following?

a)

a ban on imported goods

b)

a limit on imported goods

c)

a tax on imported goods

8.

The value of a currency in one country compared with the value of another is called the....

a)

balance of payments

b)

exchange rate

c)

inflation rate

d)

currency

9.

Quotas may be set by a country to protect one of its industries from too much foreign competition.

a)

True

b)

False

10.

________ _______ exists when a country can produce a good or service at a lower cost than any other country. Think of South America and their coffee.

a)

comparative advantage

b)

absolute advantage

c)

partial advantage

d)

total advantage

11.

If the currency exchange rate is $1.25 = 1 Euro, how much will it cost in U.S. dollars to acquire 100 Euros?

a)

$1.25

b)

$1,250.00

c)

$125.00

d)

$12.50

12.

If the currency exchange rate between the U.S. dollar and the British pound were 1 pound to 1.5 U.S. dollars, how many dollars would 500 pounds buy?

a)

$333.33

b)

$500.00

c)

$750.00

d)

$1,500.00

13.

Which of the following is a case of international EXPORTS?

a)

The Velasco Co. of the U.S. ships 20 truckloads of seafood to Canada.

b)

The Lamando retail firm of France decides to expand to the U.K. and purchases a large plot of land.

c)

BBN Bank of Canada sends $30 million to its subsidiary in the Bahamas.

d)

all are examples

14.

A country's ________ ________ is defined as the difference between money that goes into and out of the country.

a)

balance of trade

b)

balance of payments

c)

balance of money

d)

balance of power

15.

Suppose that the exchange rate between the dollar and the peso changed from 6 pesos per dollar to 8 pesos per dollar. This change means that the.....

a)

peso appreciated in value

b)

peso depreciated in value

c)

dollar depreciated in value

16.

If the U.S. set a 12% tariff on imported automobiles, a Toyota that cost the equivalent of $13,000 in Japan would be priced at:

a)

$15,420 plus shipping in the U.S.

b)

$14,200 plus shipping in the U.S.

c)

$16,280 plus shipping in the U.S.

d)

$14,560 plus shipping in the U.S.