Comprehensive Quiz #2 – Flashcards

An unfavorable balance of trade occurs when A. exports equal imports. B. the total outflow of money is greater than the total inflow of money. C. the total outflow of money is less than the total inflow of money. D. imports are greater than exports. E. exports are greater than imports.

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n) A. international alliance. B. economic community. C. free-trade association. D. common market. E. None of these answers is correct.

When a business has plants located in several foreign countries, it is called a A. countertrade. B. joint venture. C. trading company. D. multinational company. E. licensing firm.

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This is known as A. manufacturing in foreign countries. B. direct investment. C. exporting. D. licensing. E. None of these answers is correct.

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n) A. trade embargo. B. import deficit. C. import tariff. D. import quota. E. import duty.

Despite trade restrictions, international business is A. growing. B. slowing down. C. moving slowly. D. decreasing. E. struggling for survival.

When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n) A. duty. B. devaluation. C. embargo. D. tariff. E. quota.

Which of the following is not a characteristic of an international direct investment in a "totally owned" facility? A. Low financial risk. B. High degree of control. C. Requires direct international investment. D. Utilizes subsidiaries. E. All of the above are characteristics.

The United States buys automobiles from Japan and Germany and petroleum products from many OPEC nations. The United States thus engages in A. tariffing. B. dumping. C. importing. D. deficit trading. E. exporting.

The United Kingdom sells industrial supplies and materials to many nations around the world. The United Kingdom thus engages in A. deficit trading. B. importing. C. exporting. D. tariffing. E. dumping.

The total dollar value of all goods and services produced by all people within the boundaries of a country is called A. standard of living. B. gross national product. C. gross domestic product. D. balance of trade. E. trade surplus.