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Intro to Business Unit 6 Chapter 10

Question 1 of 24

1

Domestic trade is when the same country produces, purchase, and sell the item.

Select one of the following:

  • True
  • False

Explanation

Question 2 of 24

1

Which of the following is NOT true about why countries participate in world trade?

Select one of the following:

  • a. countries take pride in buying their own items

  • b. a country does not have suitable climate to produce that item

  • c. other countries can produce the products cheaper

  • d. other countries cannot produce as good of products

Explanation

Question 3 of 24

1

How is the country’s currency determine how much it is worth when dealing with exchange rate?

Select one of the following:

  • Number of other countries that demand its products
    The overall demand of products from a certain country

  • c

Explanation

Question 4 of 24

1

For the month of October, France imports $1,000 worth of rice from Asia, $400 worth of Coffee from Columbia, and $500 worth of corn from the United States. France exports $700 worth of clothing to the United States. They also exported $400 worth of seafood to Canada. What is the balance of trade for France in the month of October? (Hint: Give the term, not the amount)

Select one of the following:

  • Trade Deficit

  • c

Explanation

Question 5 of 24

1

The United States government does not want its people to depend too much on oil as a country. To limit this from happening the government only allows so much into a country therefore there is a consistent amount throughout the year.

Select one of the following:

  • quota

  • tariff

  • embargo

  • c. limitation

Explanation

Question 6 of 24

1

Which of the following reasons is a reason why a country would want to share items that they produce with other countries?

Select one of the following:

  • a. countries can become too dependent on other countries

  • b. cheap labor in other countries can lower wages at home

  • c. to offset their trade deficit

  • d. protected from unfair foreign competition

Explanation

Question 7 of 24

1

A country would place an embargo on another country due to which of the following reason(s)?

Select one of the following:

  • a. political

  • b. both political and military

  • military

  • d. lack of finances

Explanation

Question 8 of 24

1

Since the United States is at war with Iraq, the US is more careful on what they trade to them. US would place what on exports to Iraq that might harm the soldiers or the country in any way?

Select one of the following:

  • a. none of the other answers are correct

  • embargo

  • quota

  • tariff

Explanation

Question 9 of 24

1

In order to make sure the price of tennis shoe does not fluctuate too much, the government will make sure that only a limited amount of tennis shoes come into the country. That way there will not be a surplus or deficit of tennis shoes and the price should stay fairly consistent due to the supply and demand not changing much.

Select one of the following:

  • a. none of the other answers are correct

  • b. tariff

  • embargo

  • quota

Explanation

Question 10 of 24

1

The government puts limits on foreign trade to protect businesses at home.

Select one of the following:

  • Specialize

  • Protectionism

  • Comparative Advantage

  • World Trade

Explanation

Question 11 of 24

1

The ability of a country or company to produce a particular good more efficiently than another country or company.

Select one of the following:

  • Specialize

  • Protectionism

  • Comparative Advantage

  • World Trade

Explanation

Question 12 of 24

1

Focus on a particular activity, area, or product

Select one of the following:

  • Specialize

  • Protectionism

  • Comparative Advantage

  • World Trade

Explanation

Question 13 of 24

1

Exchange of goods and services across international boundaries

Select one of the following:

  • Specialize

  • Protectionism

  • Comparative Advantage

  • World Trade

Explanation

Question 14 of 24

1

Which of the following items does the US not import from the proper country?

Select one of the following:

  • a. Coffee from Colombia

  • b. Bananas from Honduras

  • c. Sugar Cane from Hawaii

  • d. Cars from Japan

Explanation

Question 15 of 24

1

The United States produces their own cotton for t-shirt companies at a rate of $5.00 a pound. A country in Europe can produce cotton for $2.00 a pound. By the time shipping has been added to the price, it comes to about $3.00 per pound. What should the US government the US company does not go out of business.

Select one of the following:

  • a. stop producing it in the US

  • b. place an embargo

  • c. set a quota

  • d. place a tariff

Explanation

Question 16 of 24

1

Business that is done in multiple countries is called domestic business.

Select one of the following:

  • True
  • False

Explanation

Question 17 of 24

1

Zach Morris has some Mexican Pesos left over from his spring break vacation. Where does Zach need to go to exchange the Mexican Pesos for the American dollar?

Select one of the following:

  • a. an airport

  • b. foreign currency center

  • c. foreign exchange market

  • d. bank

Explanation

Question 18 of 24

1

Which of the following choices is a product that the United States NOT commonly export to other countries?

Select one of the following:

  • a. ESPN T.V. station

  • b. machinery

  • c. wheat

  • d. pepper

Explanation

Question 19 of 24

1

AC goes to Mexico for a vacation, he converts his American dollars into Pesos. What conversion rate would AC get when he went to exchange his money?

Select one of the following:

  • a. last week

  • b. the next business day

  • c. best rate within the last week

  • d. rate at the current time

Explanation

Question 20 of 24

1

A country can have a trade deficit with two other countries but their overall balance of trade can still be a trade surplus.

Select one of the following:

  • True
  • False

Explanation

Question 21 of 24

1

The exchange rate between two countries currencies changes everyday.

Select one of the following:

  • True
  • False

Explanation

Question 22 of 24

1

Exports are goods and services that the country brings into the country to sell to other random people.

Select one of the following:

  • True
  • False

Explanation

Question 23 of 24

1

Which of the following things does free trade NOT offer to individuals?

Select one of the following:

  • a. opens up new markets

  • b. new jobs

  • c. better quality of products

  • d. less variety

Explanation

Question 24 of 24

1

Since the 1970’s World Trade has increased dramatically. Which of the following is NOT something that helped increase the trade?

Select one of the following:

  • a. decrease in trade barriers

  • b. telecommunication

  • c. transportation

  • d. protectionism

Explanation

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