Ch. 10 Business Review

C. currency

7. Which is a way you pay for goods and services? A. trade B. exchange rate C. currency D. specialization

d. value

A balance of trade is the difference in __________________ between a country's imports and exports over a period of time. a. quantity b. scope c. quality d. value

d. specialization

When countries focus on a particular activity, area, or product it is called _______________. a. globalization b. nationalization c. isolation d. specialization

c. opposing

When talking about trade disputes, protectionism and free trade represent _____________ points of view. a. controversial b. identical c. opposing d. similar

D. Mexico - dolare

Which country is NOT matched with its standard currency? A. Japan - yen B. Canada - dollar C. India - rupee D. Mexico - dolare

C. Dominican Republic

Which is NOT a country involved in NAFTA? A. United States B. Mexico C. Dominican Republic D. Canada

B. trade barrier

A quota is an example of a(n)______________ . A. embargo B. trade barrier C. tariff D. trade alliance

imported

A quota limits the quantities of a product that can be ________________.

C. limits

Protectionism is the practice of the government putting ___________ on foreign trade to protect businesses at home. A. embargo B. trade barrier C. limits D. tariffs

A. If a country's currency is higher than another's, it has more buying power.

How can you compare exchange rates? A. If a country's currency is higher than another's, it has more buying power. B. If a country's currency is higher than another's, it has less buying power. C. It is impossible to compare the value of two different currencies. D. Look at the number amount to compare two currencies.

b. interconnected

The global economy is the ___________________ economies of the nations of the world. a. independent b. interconnected c. integrated d. internationalized

a. balance of trade

In July 2006, U.S. exports to Mexico were worth $15 million and imports were worth $10 million. During that month, the United States had an unfavorable ______________with Mexico. a. balance of trade b. export ratio c. economic balance d. import ratio

market

In a trade alliance, several countries merge their economies into one huge _____________.

Canada

NAFTA combines the economies of the United States, Mexico, and _____________.

exports

The goods and services that China sells to other countries are China's ___________.

globalization

The development of the global economy is often called what?

domestic

The production, purchase, and sale of goods and services within a country is called ___________ trade.

D. the difference in value of a country's imports and exports

What is a balance of trade? A. a trade surplus B. a trade deficit C. importing or exporting the services of professionals D. the difference in value of a country's imports and exports

the ability of a country to produce a particular good more efficiently than another country.

What is a comparative advantage?

a tariff

What is a tax placed on imports?

B. the exchange of goods and services between countries

What is international trade? A. the development of economies in the third world B. the exchange of goods and services between countries C. the placing by a company of offices and facilities in several countries D. the fluctuating exchange rate between currencies of different countries

A. free trade

What occurs when there are few or no limits on trade between countries. A. free trade B. globalization C. limited competition D. protectionism

a. international

What trade involves the exchange of goods and services between nations? a. international b. multinational c. lateral d. universal

d. surplus

When a country exports more than it imports, it has a trade _____________. a. balance b. excess c. deficit d. surplus

trade deficit

When a country imports more than it exports, it has a _____________.

A. The crop can be produced in your own country more cheaply.

Which is NOT a reason for importing an agricultural crop? A. The crop can be produced in your own country more cheaply. B. Your country does not have the right climate to grow the crop successfully. C. Shipping is no longer prohibitively expensive. D. A higher quality crop can be produced outside your country.

C. Specialization is bad for a country's economy or standard of living.

Which is NOT true about specialization? A. To specialize means to focus on one area, activity, or good. B. Countries that specialize trade their particular product for every other good. C. Specialization is bad for a country's economy or standard of living. D. Countries that specialize have a comparative advantage.

A. Foreign trade of any kind is prohibited.

Which is NOT true of countries with protectionist policies? A. Foreign trade of any kind is prohibited. B. National defense programs are more secure. C. Jobs at home are more secure. D. Domestic businesses are sheltered from unfair foreign competition.

B. Everyone agrees that making alliances is a positive thing.

Which is NOT true of forming trade alliances? A. Trade alliances stimulate growth. B. Everyone agrees that making alliances is a positive thing. C. Making alliances has significantly increased trade between nations. D. Alliances are made in order to eliminate trade barriers.

B. Competition forces businesses to become more efficient, innovative, and productive.

Which is a benefit of countries competing in the same market? A. Competition often leads to trade disputes. B. Competition forces businesses to become more efficient, innovative, and productive. C. Cheap labor overseas can threaten jobs at home. D. A country can become too dependent on another country for a certain product.

D. Foreign markets can threaten domestic markets.

Which is a disadvantage to free trade? A. Countries can raise their standard of living. B. Consumers have more choices. C. Cultural understanding and cooperation among countries improves. D. Foreign markets can threaten domestic markets.

d. NATO

Which is not an example of a trade alliance? a. ASEAN b. EU c. NAFTA d. NATO

A. Currency is bought and sold on the foreign exchange market.

Which is true of currency trading? A. Currency is bought and sold on the foreign exchange market. B. When a currency's value falls, it appreciates. C. Rates stay the same almost all the time. D. All currencies are about equal in value.

C. tariff

Which term refers to a tax placed on imported goods? A. quota B. barrier C. tariff D. embargo

an embargo

Which trade barrier is usually used for political or military reasons?

D. agricultural

Which types of products do other countries mostly buy from the U.S.? A. fuels B. clothes C. toys D. agricultural