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CHAPTER 3: GLOBAL BUSINESS Learn/RevIew&Practice/Apply It

Total questions: 19

Worksheet time: 49mins

Name
Class
Date
1.

When a country can produce a good or service at a lower cost than other countries, it has an absolute advantage.

a)

True

b)

False

2.

When a country's imports exceed its exports, there is a trade _______

a)

a. Surplus

b)

b. Exchange

c)

c. Balance

d)

d. Deficit

3.

The value of a country's currency is likely to decline as a result of

a)

a. Higher Inflation

b)

b. Lower Interest Rates

c)

c, Political Stability

d)

d. A Favorable Balance Of Payments

4.

Political and legal factors that affect international business that include the type of government, the stability of the government, and government policies toward business.

a)

True

b)

False

5.

An "Informal Trade Barrier" is created by government actions.

a)

True

b)

False

6.

A limit that a government sets on the quantity of a product that may be imported or exported is called a(n)

a)

a. Tariff

b)

b. Embargo

c)

c. Quota

d)

d. Infrastructure

7.

A country that wishes to enhance international trade activities would most likely use a(n)

a)

a. Tariff

b)

b. Embargo

c)

c. Quota

d)

d. Common Market

8.

Multinational companies usually consist of a Parent Company in a home country and divisions or separate companies in one or more other countries.

a)

True

b)

False

9.

A company is planning to sell the rights to its brand name for use in other countries without being actively involved. This is an example of

a)

a. A Joint Venture

b)

b. A Free-Trade Agreement

c)

c. Licensing

d)

d. A Franchise

10.

The international organization that settles trade disputes and enforces free-trade agreements is the

a)

International Money Fund (IMF)

b)

World Trade Organization

c)

World Bank

d)

European Union

11.

Match the following

a)

Exchange Rate

1.

Value of $ in one country versus another

b)

Trade Barriers

2.

Restrictions to Free Trade

c)

Balance of Payments

3.

Difference between$ "In&Out of country

d)

Balance of Trade

4.

Difference btwn Total exports & imports

12.

(a)   is a tax that a government places on certain imported products.

13.

An agreement between two or more companies to share a business project is called a _____ _______

(a)  

14.

An action imposed by a government to stop the export or import of a product completely is called

a(n) -------

(a)  

15.

(a)   is a government set limit on the quantity of a product that may be imported or exported within a given period.

16.

(a)   are goods and services sold to other countries.

17.

(a)   are goods and services bought from other countries..

18.

An organization that does business in several countries is called a _____________ _______

(a)  

19.

(a)   is a factor that supports international trade in industrialized countries, including a nation's transportation, communication, and utility systems.