 One goal of the World Trade Organization is to eliminate import quotas.
 True
 An agreement between two or more companies to share a business project is
called
 A) licensing
 B) franchising
 C) a proprietorship
 D) a joint venture
D
 Domestic business refers to business activities needed for creating, shipping, and
selling goods across national borders.
 False
 Which of the following would likely cause the value of the dollar to RISE?
 A) an increased U.S. trade deficit
 B) higher U.S. interest rates
 C) loser U.S. inflation
 D) Saudi Arabia doubles the price of the oil it sells the U.S.
C
 Franchising is selling the right to use a trademark or brand name for a fee or
royalty.
 False
 Which of the following situations represents an absolute advantage?
 A) Saudi Arabia in fresh fish production
 B) Honduras in banana production
 C) Canada in rice production
 D) Norway in orange and grapefruit production
B
 With a free-trade zone, member countries agree to remove duties and trade
barriers on products traded among them.
 False
 With foreign trade, many things you buy would cost more or not be available.
 True
 Which of the following tends to discourage international trade?
 A) an embargo
 B) a free-trade zone
 C) a common market
A
 MNC’s sometimes control a country’s political power.
 True
 The amount a country owes to other countries is called
 A) national debt
 B) foreign debt
 C) trade deficit
 D) balance of payments
B
 If a country exports more than it imports, it has a trade surplus.
 True
 Danielle’s company is expanding into Korea and has asked her to research the
language, customs, and values of the Korean people. Which aspect of the
international business environment is Danielle investigating?
 A) geography
 B) economic development
 C) political and legal concerns
 D) cultural influences
D
 A country’s culture, traditions, and religion can sometimes act as informal trade
barriers.
 True
 An economy that is largely involved in agriculture is generally unable to provide its
citizens with a large number of high-quality products.
 True
 Which of the following products is NOT imported to the United States in any great
quantity?
 A) Milk
 B) oil
 C) coffee
 D) silk
A
 The value of currency in one country compared with the value in another is called
the interest rate.
 False
 Infrastructure refers to a country’s
 A) educational system
 B) system of local government
 C) transportation, communication and utility systems
 D) legal system
C
 This group helps maintain an orderly system of world exchange rates.
 A) international monetary fund
 B) world trade organization
 C) world bank
 D) European union
A
 Which of the following is an example of global strategy?
 A) pizza hut restaurants in Japan sell pizzas with squid toppings because squid is a
popular Japanese food
 B) the formula for Coca-Cola is the same no matter where in the world it is sold
 C) advertising for women’s underwear does not feature live models in many
Muslim countries to avoid offending religious sensibilities
 D) all of the above are global strategies
C
 The difference between a country’s total imports is called a balance of _______,
 The three key effects on a country’s level of economic development are _____
_____, technology, and agricultural dependency.
 A(n) _____ company is an organization that does business in several countries.
 The difference between the amount of money that comes into a country and the
amount that goes out of it is called balance of _____.
 The three main factors that affect currency exchange rates among countries are the
country’s balance of payments, economic conditions, and _____ _____.