3.1 & 3.2 POB

When a country can produce a good or service at a lower cost than other countries, it has an absolute advantage.

• True

• False

When a country's imports exceed its exports, there is a trade

• surplus.

  
  

• exchange.

  
  

• balance.

• deficit.

The value of a country's currency is likely to decline as a result of

• higher inflation.

  
  

• lower interest rates.

• political stability.

  
  

• favorable balance of payments.

  
  

Political and legal factors that affect international business activities include the type of government, the stability of the government, and government policies toward business.

• True

• Fasle

A limit that a government sets on the quantity of a product that may be imported or exported is called a(n)

• Tariff

• Embargo

• Quota

items bought from other countries.

• Imports

• Exports

• Quota

• Embargo

The value of a currency in one country compared with the value in another.

• Joint Ventures

• Balance of Payments

• Infrastructure

• Exchange Rate

An organization that does business in several countries.

• Trade Barriers

• Embargo

• Multinational Company

• Exchange Rate

Trading between countries

• Exchange rate
• Embargo
• International trade
• Voluntary trade

Products sold to other countries

• Currency
• Import
• Export
• International trade