WorksheetsChapter 3.1 and 3.2 Study Guide 4/5/22
Total questions: 20
Worksheet time: 12mins
Define Absolute Advantage.
Exists when a country can produce a good/service at a lower cost than other countries.
Any location where goods can be shipped, handled, manufactured, reconfigured, and re-exported without the involvement of customs agencies.
Occurs if a country´s imports are more than its exports; unfavorable.
The value of a currency in one country is compared with the value in another.
What does Absolute Advantage result from?
Results from the abundance of natural resources/raw materials.
Results from the supply of minerals and human resources.
Results from the increase in exports.
Results from the Value Of Currency decreasing.
What are 2 examples of Absolute Advantage?
Coffee from South American Countries
Oil from Saudi Arabia
Tea from the United States
Coal from Mexico
Define Balance Of Payments.
The difference between the amount of money that comes into a country and the amount that goes out of it.
An organization of countries who have agreed to trade freely with each other and make common decisions about industry and agriculture.
Government policies that place restrictions on international trade.
Occurs if a country´s imports are more than its exports; unfavorable.
What happens when the Balance Of Payments is at a positive/favorable balance?
A nation receives more money in a year than it pays out.
A nation receives less money in a year than it pays out.
A nation does not recieve any money
A nation gets double the money they normally receive.
True/False: Is the Balance of Payments one of the three main factors that affect currency?
True
True
False
False
When does Currency typically go up?
When there is a favorable balance of payments and demand increases.
When the balance of payments is Unfavorable.
When Balance Of Payments crashs down.
When the Balance Of Payments gets taken by another foreign country.
Define Balance Of Trade.
The difference between a country’s total exports and total imports.
Government policies that place restrictions on international trade.
An indirect barrier to trade.
The basic physical systems of a business, region, or nation.
Define Common Markets.
An organization of countries who have agreed to trade freely with each other and make common decisions about industry and agriculture.
The surroundings in which international companies run their businesses.
The basic physical systems of a business, region, or nation.
A tax imposed by one country on the goods and services imported from another country.
What do Common Markets allow companies to do?
Allows companies to invest freely in each member’s country.
Allows companies to steal businesses from other countries.
Allows companies to not pay taxes for their country.
Allows companies to purchase every stock in the business.
What do Common Markets allow workers to do?
Allows workers to move freely across borders.
Does not allow workers to move accross borders.
Allows workers to let other people from another country to pass across borders illegally.
Allows workers to steal businesses on the market.
What are 2 examples of Common Markets?
The European Union (EU)
The Latin American Integration Association (LAIA)
The United States Of America (USA)
The United Kingdom (UK)
True/False: Common Markets are not an action to encourage international trade.
False
False
True
True
Define Compartive Advantage.
A situation in which a country specializes in the production of a good/service at which it is relatively more efficient.
The value of a currency in one country compared with the value in another.
An indirect barrier to trade.
The basic physical systems of a business, region, or nation.
Define Exchange Rate.
The value of a currency in one country compared with the value in another.
A situation in which a country specializes in the production of a good/service at which it is relatively more efficient.
Government policies that place restrictions on international trade.
Exists when a country can produce a good/service at a lower cost than other countries.
True/False: Is Exchange Rate one of the Elements of the International Business Environment in the category of Economics?
True
True
False
False
True/False: The International Monetary Fund does not maintain an orderly system of world trade and exchange rates.
False
False
True
True
Define Formal Trade Barriers.
Government policies that place restrictions on international trade.
The basic physical systems of a business, region, or nation.
Occurs if a country´s imports are more than its exports; unfavorable.
A situation in which a country specializes in the production of a good/service at which it is relatively more efficient.
What are three formal trade barriers?
Quotas, Tariffs, and, Embargoes.
Stocks, Trivers, and, Standers.
Trade zones, Exports, and, Imports.
Taxes, Demands, and, Supplies.
Define Free Trade Agreement.
When Member countries agree to remove duties and trade barriers on products traded among them
An indirect barrier to trade.
The basic physical systems of a business, region, or nation.
The difference between the amount of money that comes into a country and the amount that goes out of it.
