1. A budget surplus, when a nation spends less than it takes in from taxes, is the opposite of a(n)
a. stagnant income.
b. budget deficit.
c. economic expansion.
d. balance of trade.
e. economic contraction
2. Unethical behavior in business can be reduced if management does all of the following except
a. establish clear policies on unethical behavior.
b. limit opportunities for unethical behavior.
c. establish formal rules and procedures.
d. punish unethical behavior firmly.
e. depend totally on employees' personal ethics.
3. When a Chicago-based company buys coffee from Colombia, it
a. is importing the coffee.
b. is exporting the coffee.
c. has an absolute advantage.
d. is decreasing the trade deficit.
e. is making a big mistake
4. Licensing is a way of entering the international marketplace without spending large amounts of money abroad.
a. TRUE
b. FALSE
5. Maquiladoras are possible under the Asia-Pacific Economic Cooperation.
a. TRUE
b. FALSE
6. Protective tariffs raise the price of foreign goods to allow competition with more expensive domestic goods.
a. TRUE
b. FALSE
7. When a country devalues its currency, this encourages the sale of its
a. imports.
b. domestic goods to foreign countries.
c. international goods.
d. international services.
e. debts.
8. Trading companies offer all of the following services except
a. consulting.
b. advertising.
c. manufacturing.
d. warehousing.
e. foreign exchange
9. .Until recently, the United States could produce oil-drilling equipment more efficiently than other countries, and, in a sense, monopolized the industry. In the market for oil-drilling equipment the United States had a(n)
a. positive advantage.
b. comparative advantage.
c. negative advantage.
d. absolute advantage.
e. marginal advantage.
10. All multinationals are American firms.
a. TRUE
b. FALSE
11. An absolute advantage exists when a country has a monopoly on a natural resource.
a. TRUE
b. FALSE
12. The World Bank and other multilateral development banks are the largest sources of advice and assistance for developing nations.
a. TRUE
b. FALSE
13. Which of the following is not necessary for an MIS to be effective?
a. Ability to collect data
b. Ability to store and update data
c. Ability to process information
d. Ability to present information
e. Ability to enhance information
14. Which of the following forms of business organization restricts the number and type of shareholder?
a. Sole proprietorship
b. Co-op
c. Limited liability company
d. S-corporation
e. Partnership
15. Technological advances have resulted in fewer opportunities for small businesses abroad.
a. TRUE
b. FALSE