Quiz Over Business In The Global Economy
- 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
Back to top