Chapter 9 Test- Business Mangement

Front

Foreign investment occurs when firms of one country build new plants in another country.

Back

true

Front

Goods and services that are sold to other countries are called exports.

Back

true

Front

A country earns revenue by imposing tariffs on foreign goods.

Back

true

Front

When dumping occurs, the price of the goods in a foreign market drops.

Back

true

Front

Tariffs have a tendency to lower the price of foreign products.

Back

false

Front

Nontariff barriers are designed to protect foreign producers.

Back

false

Front

Culture affects how people communicate in a country.

Back

true

Front

When the cost of making goods is lower in foreign countries than at home, it becomes cost effective for companies to buy goods made abroad.

Back

true

Front

Trading blocs have discouraged global trade and investment.

Back

false

Front

The WTO creates and enforces rules governing trade within the United States.

Back

false