Chapter 5: Global Economy Review

The connection made among nations when economies freely move goods, labor, and money across borders is called:

• Global Business

• International Business

• Globalization

The shared beliefs, customs, practices, and social behaviors of a particular group or nation is called:

• Beliefs

• Culture

• Values

Goods and services produced within a country's borders and sold in another country is called:

• Import

• Deficit

• Surplus

• Export

Goods, services, and capital brought into a country from outside its borders is called:

• Surplus

• Deficit

• Export

• Import

This exists when a country can produce goods and services more efficiently and at a lower cost than another country:

• Absolute Advantage

• Comparative Advantage

• Advantage

When a country specializes in producing a product at which it is relatively more efficient at is called:

• Absolute Advantage

• Comparative Advantage

• Advantage

When a country exports more than it imports it is called:

• Deficit

• Surplus

When a country imports more than it exports it is called:

• Surplus

• Deficit

The cost to convert one currency into another is called:

• Currency

• Customs

• Foreign Exchange Rate

A government order that prohibits trade with a foreign country is called:

• Trade Sanctions

• Tariff

• Embargo