Personal Finance Check Points: 3-1 Chapter 3-1 Key Terms:

Personal Finance
Chapter 3-1
Key Terms:
1. imports 2. exports 3. balance of trade –
4. balance of payments –
5. exchange rate –
Check Points: 3-1
1. How does importing differ from exporting?
2. How does balance of trade differ from balance of payments?
3. What factors affect the value of a country's currency?
Assessment: 3-1
1. Which of the following would not be an example of international
a. A farmer in Iowa using U.S. produced equipment
b. A sales staff in South Carolina representing a foreign producer
c. A restaurant in Chicago offering Asian menu items
d. A retail store in Oregon selling craft items from local artists
2. When a country's imports exceed its exports, this is a trade
a. surplus
c. exchange
b. deficit
d. balanc3
3. The value of a country's currency is likely to decline as a result
a. higher inflation
b. lower interest rates
c. a trade surplus
d. a favorable balance of payments
key terms - chapter 3-2
1. infrastructure –
2. trade barrier –
3. quota –
4. tariff –
5. embargo
Checkpoints: 3-2
1. List the four main elements of the international business environment.
2. What are three formal trade barriers?
3. What actions could be taken to encourage international trade?
Assessment: 3-2
Key Concepts
1. Infrastructure is a significant factor that affects the economic
development of a country.
True or False (circle one)
2. An informal trade barrier is created by government actions.
True or False (circle one)
3. Religion is an element of the ______ component of the international
business environment.
a. geographic
b. economic
c. cultural
d. political
4. A country that wishes to enhance international trade activities
would most likely use
a. a tariff
b. a common marker
c. an embargo
d. a quota
key terms - chapter 3-3
1. multinational company (MNC) 2. joint venture Checkpoints: 3-3
1. What are two strategies commonly used by multinational
2. How does licensing differ from a tranchise?
3. How does the International Monetary Fund assist countries?
Assessment 3-3
Key Concepts
1. A company is planning to sell the rights to its brand name for use
in other countries. This is an example of a
a. joint venture
b. trade agreement
c. franchise
d. licensing agreement
2. The international organization that settles trade disagreements
and enforces free-trade agreements is the
a. WTO
c. IMF
b. United Nations
d. World Bank