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WorksheetsChapter 3
Total questions: 22
Worksheet time: 7mins
Domestic business is the making, buying, and selling of goods and services within a country.
True
False
(a) business refers to business activities needed for creating, shipping, and selling goods and services across national borders.
A(n) _____ advantage is a situation in which a country specializes in the production of a good or service at which it is relatively more efficient.
comparative
infinite
absolute
colossal
A(n) _____ advantage exists when a country can produce a good or service at a lower cost than other countries.
comparative
infinite
absolute
colossal
(a) are items bought from other countries
(a) are goods and services sold to other countries.
A trade deficit is when a country exports more than it imports.
True
False
A trade surplus is when a country exports more than it imports.
True
False
A positive balance of payments occurs when a nation receives more money in a year than it pays out.
True
False
A negative balance of payments occurs when a nation sends out more money than it brings in.
True
False
The (a) rate is the value of a currency in one country compared with the value in another.
There are 3 main factors that affect currency exchange rates among countries. Which of the following is not one of the 3?
Political stability
Balance of payments
Geography
Economic conditions
Geography, cultural influences, economic development, and political/legal concerns are the main factors to consider when doing business in other countries.
True
False
A tariff is a tax that a government places on certain imported products.
True
False
A(n) (a) happens when a government sets a limit on the quantity of a product that may be imported or exported within a given period.
Embargoes are imposed for many reasons including (there is more than one answer):
protecting their own industries from international competition.
to express approval of the actions or policies of another country.
preventing sensitive products from falling into the hands of unfriendly groups or nations.
to encourage trade among nations.
The free-trade agreement between the United States, Canada, and Mexico is called (a) .
A multinational company (MNC) is an organization that does business in several states.
True
False
When a corporation has a global strategy, it uses the same product and marketing strategy worldwide.
True
False
A benefit to a MNC is that goods are often at higher prices than goods made domestically.
True
False
A drawback to a MNC is that it might influence or control the political power of the country.
True
False
The key function of the World Bank is to maintain an orderly system of world trade and exchange rates.
True
False
