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BUS CH03-1

Total questions: 6

Worksheet time: 3mins

Name
Class
Date
1.

_______ is buying products from another country.

a)

Importing

b)

Outsourcing

c)

Retailing

d)

Exporting

2.

The theory of ____ states that a nation should produce and sell goods to other countries that it produces most efficiently and buy goods from other nations that they produce more efficiently.

a)

absolute advantage

b)

comparative advantage

c)

mercantilism

d)

bilateral advantage

3.

An unfavorable balance of trade occurs when the value of:

a)

Imports equal the value of exports

b)

Cash inflows are equal to the value of cash outflows

c)

Imports exceed the value of exports

d)

Exports exceed the value of imports

4.

The president of Auto Parts of America Corporation recently testified before Congress, urging them to limit the flow of imported automobile parts in the US. He contended that these imports were priced lower than foreign producers were charging for them in their own countries. He believes foreign producers were:

a)

exhibiting ethnocentricity

b)

promoting free trade

c)

exercising trade deficits

d)

dumping

5.

The largest importer in the global market today is:

a)

Germany

b)

The United States

c)

Russia

d)

Japan

6.

An important principle for firms desiring to export is:

a)

sell to countries with high standards of living.

b)

keep in mind that American methods are probably always best.

c)

find a need in the global market and fill it.

d)

if your product sells well in the US it will sell well globally.