Business Fundamentals Chapter 3 Terms

What is the ability to produce a specific product more efficiently than any other nation called?

• Absolute advantage

• Comparative advantage

• Economic community

• Trade deficit

What do you call a negative balance of trade?

• Absolute advantage

• Comparative advantage

• Economic community

• Trade deficit

The ability to produce a specific product more efficiently than any other product.

• Absolute advantage

• Comparative advantage

• Economic community

• Trade deficit

What is the total value of a nation’s exports minus the total value of its imports over a specified period of time?

• Currency devaluation

• Balance of trade

• Import quota

• Tariff

What term describes the reduction of the value of a nation’s currency relative to the currencies of other countries?

• Currency devaluation

• Embargo

• Dumping

• Licensing

What is the exportation of large quantities of a product at a price lower than that of the same product in the home market called?

• Exporting

• Dumping

• Importing

• Tariff

What is an organization of nations formed to promote the free movement of resources and products among its members called?

• Economic community

• World Bank

• Strategic alliance

• Multilateral development bank

What is a complete halt to trading with a particular nation or of a particular product called?

• Currency devaluation

• Tariff

• Import quota

• Embargo

What is selling and shipping raw materials or products to other nations known as?

• Importing

• Exporting

• Licensing

• Dumping

What is the General Agreement on Tariffs and Trade (GATT)?

• An international organization dedicated to reducing or eliminating tariffs and other barriers to world trade

• A cooperative banking institution with 189 member countries

• A tax levied on a particular foreign product entering a country

• A partnership formed to create competitive advantage on a worldwide basis