Quiz Over Business In The Global Economy

30 Questions | Total Attempts: 245

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Global Economy Quizzes & Trivia

Questions and Answers
  • 1. 
    Domestic business refers to business activities needed fro creating, shipping, and selling goods across national borders.
    • A. 

      True

    • B. 

      False

  • 2. 
    Without foreign trade, many things you buy would cost more or not be available.
    • A. 

      True

    • B. 

      False

  • 3. 
    If a country exports more than it imports , it has  a trade surplus.
    • A. 

      True

    • B. 

      False

  • 4. 
    The value of currency in one country compared with the value in another is called the interest rate.
    • A. 

      True

    • B. 

      False

  • 5. 
    An economy that is largely involved in agriculture is generally unable to provide its citizens with a large number of high quality products.
    • A. 

      True

    • B. 

      False

  • 6. 
    A countrys culture, traditions, and religion can sometimes act as informal trade barriers.
    • A. 

      True

    • B. 

      False

  • 7. 
    With a free trade zone, member countries agree to remove duties and trade barriers on products traded among them
    • A. 

      True

    • B. 

      False

  • 8. 
    MNC's  sometimes control a country's political power.
    • A. 

      True

    • B. 

      False

  • 9. 
    Franchising is selling the right to use a trademark or brand name for a fee or royalty.
    • A. 

      True

    • B. 

      False

  • 10. 
    One goal of the World Trade Organization is to eliminate import quotas
    • A. 

      True

    • B. 

      False

  • 11. 
    Which of the following 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 pineapple production

  • 12. 
    Which of the following products in NOT imported to the United States in any great quantity?
    • A. 

      Milk

    • B. 

      Oil

    • C. 

      Coffee

    • D. 

      Silk

  • 13. 
    The amount a country owes to other countries is
    • A. 

      National debt

    • B. 

      Foreign debt

    • C. 

      Trade deficit

    • D. 

      Balance of payments

  • 14. 
    Which fo the following would likely cause the value of the dollar to RISE?
    • A. 

      An increased US trade deficit

    • B. 

      Higher US interest rates

    • C. 

      Lower US inflation

    • D. 

      Saudi Arabia doubles the price of the oil it sells the US

  • 15. 
    Dainielle'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 interantional business environment is Danielle investigating?
    • A. 

      Geography

    • B. 

      Economic development

    • C. 

      Political and legal concerns

    • D. 

      Cultural influences

  • 16. 
    Infrastructure refers to a country's
    • A. 

      Educational system

    • B. 

      System of local government

    • C. 

      Transportation, communications, utility systems

    • D. 

      Legal system

  • 17. 
    Which of the following tends to discourage international trade?
    • A. 

      An embargo

    • B. 

      A free trade zone

    • C. 

      Free trade agreement

    • D. 

      A common market

  • 18. 
    Which of the following is an example of a global strategy?
    • A. 

      Pizza Hut restaurants in Japan sell pizza with squid toppings

    • B. 

      The formula for Coke is the same no matter where in the world its sold

    • C. 

      Advertising for womens underwear does not feature live models in Muslim countries to avoid offending religious sensibilities

    • D. 

      All of the above are global strategies

  • 19. 
    An agreement between two or more companies to share a business project is called
    • A. 

      Licensing

    • B. 

      Franchising

    • C. 

      Proprietorship

    • D. 

      Joint venture

  • 20. 
    This group helps maintain an orderly system of world exchange rates.
    • A. 

      International Monetary Fund - IMF

    • B. 

      World Trade Organizations -WTO

    • C. 

      World Bank

    • D. 

      European Union

  • 21. 
    Items bought from other countries
    • A. 

      Imports

    • B. 

      Exports

    • C. 

      Deports

    • D. 

      Quotas

  • 22. 
    A tax that a government places on certain imported products
    • A. 

      Quota

    • B. 

      Tariff

    • C. 

      Embargo

    • D. 

      Deficit

  • 23. 
    Occurs when a country sells more than it buys
    • A. 

      Trade deficit

    • B. 

      Trade surplus

    • C. 

      Embargo

    • D. 

      Interest rates

  • 24. 
    A limit on the quantity of a product that may be imported or exported
    • A. 

      Quota

    • B. 

      Tariff

    • C. 

      Commparative advantage

    • D. 

      Export

  • 25. 
    Exists when a country can produce a good or service at a lower cost than other countries.
    • A. 

      Absolute advantage

    • B. 

      Comparative advantage

    • C. 

      Quota

    • D. 

      Embargo

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