Chapter 3 Quiz

The _____ is an international bank that normally provides short-term loans to countries that are unable to meet their budgetary expenses.

International Monetary Fund

The _____ created the world's largest free-trade zone.

NAFTA (North American Free Trade Agreement)

Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):

comparative advantage

A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.

culture

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):

direct foreign investment

_____ are goods and services that are made in one country and sold to other countries.

exports

The _____ created the world's largest free-trade The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:

Imports

A(n) _____ is a tax levied by a nation on imported goods.

tariff

The most fundamental reason for the growth in world trade is probably due to:

the need for businesses to expand their markets

_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered.

multinational corporations