Intro to Business Chapter 10 Review

The United States can provide for all of the wants of needs of its people, so we do not need to trade with other countries.

• True

• False

A tariff restricts goods that can be traded.

• True

• False

The buying and selling of goods and services to/from other countries is called trade.

• True

• False

A quota restricts the amount of money that can be charged for a good exported to another country.

• True

• False

The rate of exchange is the value of the money of one country expressed in terms of the money of another country.

• True

• False

Some countries choose to lower the value of their currency to bring more business to their country.

• True

• False

When the value of a country’s currency goes down, it has a favorable exchange rate.

• True

• False

When a country imports more than it exports, it has a trade surplus.

• True

• False

Global competition often leads to trade disputes between countries.

• True

• False

Protectionism puts limits on foreign trade to protect businesses at home.

• True

• False