Term
Cook-Out is a North Carolina based fast food restaurant that operates mainly in the southeast United States. Which of the following economic terms describes this type of business transaction?
a. Consumer Trade
b. Marketing
c. Domestic Business
d. International Business |
|
Definition
|
|
Term
McDonald's is a United States based fast food restaurant that operates in more than 50 countries. Which of the following economic terms describes this type of business transaction?
a. Consumer Trade
b. Marketing
c. Domestic Business
d. International Business |
|
Definition
| d. International Business |
|
|
Term
Linux Textiles is a New Jersey based company that produces commercial grade fabric for car manufacturing. Ferrari buys leather from Linux Textiles because the American company produces the fabric for a drastically lower price than the textile companies in Italy. Which economic term explains the advantage that Linux Textiles has over the Italian textile companies?
a. Comparative advantage
b. Domestic business
c. Balance of Trade
d. Absolute advantage |
|
Definition
|
|
Term
Microsoft is the world's largest producer of computer software. More Microsoft products are bought worldwide each year than any other software company. Which economic term explains the advantage that Microsoft has over the computer software industry?
a. Comparative advantage
b. Domestic business
c. Balance of Trade
d. Absolute advantage |
|
Definition
|
|
Term
Starbucks uses mountain grown coffee beans produced solely in Brazil to make their coffee. Which economic term explains how Starbucks receives the coffee beans from Brazil?
a. Import
b. Export
c. International business
d. Domestic business |
|
Definition
|
|
Term
The United States' economy relies heavily on the buying power of other countries. If other countries are experiencing economic difficulties it affects the stability of our economy. Which term explains the economic relationship that the US has with the global market?
a. Domestic trade
b. Exports
c. Exchange rates
d. Foreign Trade |
|
Definition
|
|
Term
Hawaii is the largest producer of pineapple worldwide. In order to offset their dependence on importing, Hawaii relies heavily on which of the following economic terms?
a. Domestic trade
b. Exports
c. Exchange rates
d. Foreign Trade |
|
Definition
|
|
Term
A Japanese company imported 2,000 pounds of oranges from Florida. However, after a sudden economic downturn the Japanese company was unable to pay for the oranges that had been delivered. Which economic term describes the debt that the Japanese company has incurred.
a. Foreign debt
b. Domestic debt
c. International debt
d. Consumer debt |
|
Definition
|
|
Term
Which economic term explains the difference between a country's total exports and trades?
a. Exports
b. Debt
c. Balance of Trade
d. Balance of Payments |
|
Definition
|
|
Term
Last year, Japan sold 165,000 vehicles to the American market and only purchased 54,000 vehicles from the American market. Which economic term explains the difference between Japan's imports and exports?
a. Balance of Trade
b. Trade Surplus
c. Balance of Payments
d. Trade Deficit |
|
Definition
|
|
Term
Last Year, New Zealand spent $42.8 million importing goods and services and only made $21.6 million from exports. Which economic term explains the difference between New Zealand's imports and exports?
a. Balance of Trade
b. Trade Surplus
c. Balance of Payments
d. Trade Deficit |
|
Definition
|
|
Term
Which economic term explains the difference between the money that a country pays for imports and collects from exports?
a. Balance of Trade
b. Trade Surplus
c. Balance of Payments
d. Trade Deficit |
|
Definition
|
|
Term
Which economic term explains the use of various banking systems and money around the world?
a. International policies
b. Domestic policies
c. International currencies
d. Domestic currencies |
|
Definition
| c. International currencies |
|
|
Term
Which economic term allows business to be conducted internationally despite differences in banking systems and currency?
a. Exchange Rate
b. Domestic Rate
c. International Rate
d. Currency Rate |
|
Definition
|
|
Term
Which of the following factors affects currency values based on a country's favorable balance?
a. Balance of Payments
b. Economic Conditions
c. Political Stability
d. Exchange Rate |
|
Definition
|
|
Term
Belize is experiencing an economic recession. As a result, interest rates are rapidly increasing. The inflation in Belize is contributing to which currency value factor?
a. Balance of Payments
b. Economic Conditions
c. Political Stability
d. Exchange Rate |
|
Definition
|
|
Term
Greece is spending more money this year on imports than it is collecting on exports. This unfavorable balance is contributing to which currency value factor?
a. Balance of Payments
b. Economic Conditions
c. Political Stability
d. Exchange Rate |
|
Definition
|
|
Term
19. The process for trading the value of one currency for another occurs in which economic market?
a. Domestic Stock Market
b. Domestic Exchange Market
c. Foreign Stock Market
d. Foreign Exchange Market |
|
Definition
| d. Foreign Exchange Market |
|
|
Term
20. Which of the following would be an example of conducting business in the global marketplace?
a. A farmer in Idaho uses equipment made in Kansas to harvest his crops.
b. A restaurant in Chicago serves Asian food on their new menu.
c. A New York marketing firm represents an electronics company from Hong Kong.
d. An art gallery in Charlotte displays and sells art created by local artists. |
|
Definition
| c. A New York marketing firm represents an electronics company from Hong Kong. |
|
|
Term
1. Which economic principle is influenced by a country’s location, climate, terrain, seaports, and natural resources?
a. International Business
b. Business Activity
c. Economic Development
d. Infrastructure |
|
Definition
|
|
Term
2. Which economic principle is affected by a country’s language, religion, values, customs, and social relationships?
a. International Business
b. Business Activity
c. Economic Development
d. Infrastructure |
|
Definition
| a. International Business |
|
|
Term
3. All of the following factors are a vital part of a country’s economic development EXCEPT:
a. Literacy Level
b. Technology
c. Politics
d. Agricultural Dependency |
|
Definition
|
|
Term
4. Which economic term refers to a country’s transportation, communication, and utility systems?
a. International Business
b. Business Activity
c. Economic Development
d. Infrastructure |
|
Definition
|
|
Term
5. Which economic term restricts a country’s free trade?
a. Trade Barrier
b. Free-Trade Agreement
c. Trade Free Zone
d. Trade Advantage |
|
Definition
|
|
Term
6. Which economic term is not considered to be a trade barrier?
a. Free-Trade Agreement
b. Quota
c. Tariff
d. Embargo |
|
Definition
|
|
Term
7. Which economic term explains the limit that a government places on imports and exports?
a. Exchange Rate
b. Quota
c. Tariff
d. Embargo |
|
Definition
|
|
Term
8. Establishing a quota protects a country from which of the following factors?
a. Economic Recession
b. Limited Competition
c. Price Fixing
d. Excess Foreign Competition |
|
Definition
| d. Exchange Foreign Competition |
|
|
Term
9. Which economic term will allow a government to increase income from foreign trade?
a. Trade Tax
b. Quota
c. Tariff
d. Embargo |
|
Definition
|
|
Term
10. Which of the following is a DISADVANTAGE of high tariffs?
a. Increased Supply
b. Decreased Demand
c. Decreased Supply
d. Increased Demand |
|
Definition
|
|
Term
11. Many people believe that tariffs are used in to protect local jobs from which of the following factors?
a. Foreign Competition
b. Outsourcing
c. Unemployment
d. Salaries Reductions |
|
Definition
|
|
Term
12. Which economic term eliminates the importing and exporting of a particular good or service?
a. Free-Trade Agreement
b. Tariff
c. Quota
d. Embargo |
|
Definition
|
|
Term
13. An embargo is created after the efforts of which two trade actions have failed?
a. Trade Barriers and Quotas
b. Quotas and Tariffs
c. Tariffs and Trade Barriers
d. Embargos and Quotas |
|
Definition
|
|
Term
14. A country can encourage foreign trade by increasing which of the following economic terms?
a. Exports
b. Imports
c. Embargos
d. Quotas |
|
Definition
|
|
Term
15. Increasing the level of importing can decrease which of the following factors?
a. Employment
b. Trade Agreements
c. Political Stability
d. Foreign Trade |
|
Definition
|
|
Term
16. Which economic term provides an area where products can be imported duty-free, stored, assembled, and manufactured?
a. Common Market
b. International Market
c. Free-Trade Agreement
d. Free-Trade Zone |
|
Definition
|
|
Term
17. Which economic principle removes duties on trade barriers and the products that countries trade amongst themselves?
a. Common Market
b. International Market
c. Free-Trade Agreement
d. Free-Trade Zone |
|
Definition
|
|
Term
18. Which of the following countries is not including in the North American Free Trade Agreement?
a. Brazil
b. United States
c. Canada
d. Mexico |
|
Definition
|
|
Term
19. Also called an economic community, which economic term refers to a market that allows countries to invest in each other’s companies by eliminating duties and trade barriers?
a. Common Market
b. International Market
c. Domestic Stock Market
d. Foreign Trade Market |
|
Definition
|
|
Term
20. Which of the following is NOT an example of a common market?
a. European Union
b. Latin American Integration Association
c. Southern Africa Trade Union
d. North American Free Trade Agreement |
|
Definition
| d. North American Free Trade Agreement |
|
|
Term
1. Which economic tern describes an organization that does business in several countries?
a. International Company
b. Multinational Company
c. Foreign Company
d. Joint Venture Company |
|
Definition
|
|
Term
2. Toyota has their headquarters in Tokyo, Japan. Toyota also has assembly factories in Australia and the United States. Which term describes the country in which the headquarters of Toyota is located?
a. Host Country
b. Home Country
c. Foreign Country
d. Domestic Country |
|
Definition
|
|
Term
3. Toyota has their headquarters in Tokyo, Japan. Toyota also has assembly factories in Australia and the United States. Which term describes the countries that allow Toyota to own and operate factories within their borders?
a. Domestic Country
b. Foreign Country
c. Home Country
d. Host Country |
|
Definition
|
|
Term
4. Coca-Cola promotes the same products using the same advertisements in every country that they conduct business. Which multinational strategy does Coca-Cola use to sell their products worldwide?
a. Multinational Strategy
b. International Strategy
c. Domestic Strategy
d. Global Strategy |
|
Definition
|
|
Term
5. Ralph Lauren sells his clothing apparel worldwide. He sells different designs and develops different advertisements to various countries depending on the customs and habits of that market. Which multinational strategy does Ralph Lauren use to sell his products worldwide?
a. Multinational Strategy
b. International Strategy
c. Domestic Strategy
d. Global Strategy |
|
Definition
| a. Multinational Strategy |
|
|
Term
6. Microsoft has decided to sell the rights to install their Windows 7 operating system on the iPad to the Apple Corporation for a fee of $2.83 million. Which term explains the sale of rights to Apple?
a. Franchising
b. Trade off
c. Licensing
d. Copyright |
|
Definition
|
|
Term
7. Taco Bell has given a successful restaurateur the opportunity to own and operate a new store in Hillsborough, North Carolina. Which term explains the opportunity to own and operate a business using the names and procedures of an established company?
a. Franchising
b. Trade off
c. Licensing
d. Copyright |
|
Definition
|
|
Term
8. Which economic term describes the compensation that a parent company receives for franchising and licensing?
a. Taxes
b. Income
c. Royalties
d. Interest |
|
Definition
|
|
Term
9. Which of the following companies is most likely to franchise their company?
a. Microsoft
b. Ferrari
c. Nike
d. McDonald's |
|
Definition
|
|
Term
10. Sprint and Verizon have decided to combine their resources to provide their customers with the fastest wireless service available in the United States. Which economic term describes the relationship between the two wireless companies?
a. Partnership
b. Joint Venture
c. Joint Company
d. Corporation |
|
Definition
|
|
Term
11. All of the following are benefits of a joint venture EXCEPT:
a. Sharing of Raw Materials
b. Split Cost
c. Employee Excess
d. Lack of Wages |
|
Definition
| a. Sharing of Raw Materials |
|
|
Term
12. Which international trade organization has over 150 member countries and settles international trade disputes and enforces trade agreements?
a. North American Free Trade Agreement
b. European Union
c. Latin American Integration Association
d. World Trade Organization |
|
Definition
| d. World Trade Organization |
|
|
Term
13. Which international trade organization helps promote economic cooperation?
a. North American Free Trade Agreement
b. International Monetary Fund
c. Latin American Integration Association
d. World Trade Organization |
|
Definition
| b. International Monetary Fund |
|
|
Term
14. Which international trade organization was established in 1944 to provide loans for rebuilding after World War II?
a. World Bank
b. International Development Association
c. World Trade Organization
d. International Monetary Fund |
|
Definition
|
|
Term
15. Which international trade organization provides funds for investment in developing nations?
a. World Bank
b. International Finance Corporation
c. World Trade Organization
d. International Monetary Fund |
|
Definition
| a. International Finance Corporation |
|
|
