WorksheetsCHAPTER 3 QUIZ: BUSINESS IN THE GLOBAL ECONOMY
Total questions: 20
Worksheet time: 24mins
The international business environment involves four main components: geography, cultural influences, economic development, and political and legal concerns.
True
False
The balance of payments is the value of currency in one country compared with the value of currency in another.
True
False
Franchising is selling the right to use a trademark or brand name for a fee or royalty.
True
False
Supply and demand has no effect on the foreign exchange rate.
True
False
The International Monetary Fund (IMF) helps to promote economic cooperation by maintaining an orderly system of world trade and exchange rates.
True
False
Governments may regulate international trade by imposing quotas, which are limits on the quantity of a product that may be imported or exported.
True
False
In a free-trade zone, member countries agree to remove duties and trade barriers on products traded among them.
True
False
A multinational company is owned by individuals residing in several different countries.
True
False
Infrastructure refers to a country's transportation, communication, and utility systems.
True
False
Free-trade zones, free-trade agreements, embargoes, and common markets tend to encourage international trade.
True
False
Which of the following can create an informal trade barrier?
culture
embargo
quota
tariff
A tariff
is a limit on the quantity of a product that may be imported or exported.
completely prohibits the import or export of a product.
is a tax that a government places on certain imported products.
is a tax that a government places on certain exported products.
Which of the following is NOT one of the three main factors that affect currency exchange rates among countries?
The political stability of the country.
The country's level of technology use.
The country's balance of payments.
The economic conditions within the country.
Which of the following is an example of a global strategy?
Pizza Hut restaurants in Japan sell pizzas with squid toppings because squid is a popular Japanese food.
The formula for Coca-Cola is the same no matter where in the world it is sold.
Advertising for women's underwear does not feature live models in many Muslim countries to avoid offending religious sensibilities.
Automobiles sold in Britain have the steering wheel on the right hand side.
An agreement between two or more companies to share a business project is called
licensing
franchising
proprietorship
joint venture
The _________________ settles trade disputes and enforces free-trade agreements between member countries.
A nation's _________________ is positive or favorable when it receives more money from trade in a year than it pays out.
When a country's _________________ is negative, it exports more than it imports.
When a(n) _________________ exists, a country specializes in the production of a good or service at which it is relatively more efficient.
When a (n) _________________ exists, a country can produce a particular good or service at a lower cost than other countries.
