Question 1 

One effect of the North American Free Trade Agreement (NAFTA) is:

Answer 

an increase in trade among the NAFTA member nations

an increase in the number of low-wage jobs in the United States

a decrease in trade among NAFTA member nations

an increase in trade restrictions among the member nations

Question 2 

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of ________.

Answer 

an exchange control

an import quota

a protective tariff

dumping

Question 3 

A trade deficit occurs when ________.

Answer 

imports are sold at low profits

foreign-aid payments exceed exports

imports exceed exports

there is a net flow of money into a country

Question 4 

Los Angeles-based PMI Telecom purchases cell phones manufactured in Asia and sells them in the United States. PMI is engaging in the international business activity known as ________.

Answer 

exporting

importing

countertrade

dumping

Question 5 

Dumping _________ domestic consumers and _________ domestic producers.

Answer 

harms, benefits

harms, harms

benefits, harms

benefits, benefits

Question 6 

A balance of payments deficit occurs when ________.

Answer 

the net inflow of money from abroad exceeds the net outflows of money to other countries

imports exceed exports

the net outflow of money from a country exceeds the net inflow of money from abroad

exports exceed imports

Question 7 

An absolute advantage occurs when a country can maintain ________.

Answer 

a monopoly by outlawing foreign imports

a monopoly by levying high taxes on imports

a monopoly by being the lowest-cost producer of a good or service

its advantage by producing a good or service more efficiently

Question 8 

During the past decade, which of the following countries has experienced the greatest annual rate of GDP growth?

Answer 

United States

China

Canada

Japan

Question 9 

A country with a balance of payments surplus means ________.

Answer 

monetary inflow exceeds monetary outflow

monetary outflow exceeds monetary inflow

imports exceed exports

exports exceed imports

Question 10 

The ________ industry represents the greatest percentage of minority-owned businesses.

Answer 

Finance

Service

Retail

transportation

Question 11 

If business owners in a partnership wish to limit liability, they have the option to ________.

Answer 

pledge funds

divide into sole proprietorships

set up a limited partnership

withhold funds

Question 12 

Many businesses fail during the early years because of ________.

Answer 

niche marketers

inadequate financing

unmotivated owners

poor planning

Question 13 

The majority of all U.S. firms employ:

Answer 

more than 5,000 employees

1,000 to 3,000 employees

3,000 to 5,000 employees

500 or fewer employees

Question 14 

If you are considering starting your own business, a key priority for you should be to:

Answer 

get a loan from your local bank

incorporate your business.

learn the basics of business.

apply for a Small Business Administration loan.

Question 15 

McDonalds offers a contractual business arrangement in various countries around the world. McDonalds is an example of a(n) international ____________.

Answer 

franchise

acquisition

Merger

not-for-profit corporation

QuestionBus 508 Chapter 6 Week 3 Quiz,Business & Finance,$15.00,

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