Chapter 3 Review (Multiple Choice)

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of: A. embargo B. tariff C. import D. export E. countertrade

D

The ____ is defined as the difference in value of a country's exports and imports over a period of time. A. balance of trade B. federal deficit C. federal surplus D. balance of exchange E. balance of payments

A

____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada. A. imports B. tangibles C. tariffs D. exports E. countertrades

A

A company that has a global vision: A. recognizes and reacts to international business opportunities B. is interested in nothing more complicated than exporting C. follows its competition into foreign markets D. has a very nationalistic view of the world E. does not see competition from foreign marketers as a threat

A

How has terrorism affected global trade? A. Terrorism has curtailed the liberal inflows of skilled and blue-collar workers. B. Terrorism has led to tighter emigration policies. C. Terrorism has resulted in merchandise be moved more quickly across nations. D. Companies are stocking less inventory than ever before. E. Terrorism has not affected global trade.

A

The Blue Bird Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of: A. intangibles B. tariffs C. countertrades D. exports E. imports

E

____ are goods and services that are made in one country and sold to other countries. A. Tangibles B. Imports C. Tariffs D. Countertrades E. Exports

E

Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n) ____, and for Canadians, the timber is a(n) ____. A. import; countertrade B. import; export C. export; exchange D. export; import E. countertrade; exchange

B

A country that exports more goods than it imports is said to have a(n): A. favorable balance of payment B. negative trade deficit C. favorable balance of trade D. unfavorable balance of trade E. positive trade deficit

C

The U.S. has one of the very few areas in the world where kaolin can be minded. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.- produced kaolin is sold all over the world. Kaolin is a(n) ____ for the countries that purchase it. A. embargo B. tariff C. import D. export E. countertrade

C

The United States buys copper from Chile's Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n): A. embargo B. tariff C. import D. export E. countertrade

C