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 business? 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 of 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 companies? 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