Intro to Business Unit 6 Chapter 10

Domestic trade is when the same country produces, purchase, and sell the item.

Which of the following is NOT true about why countries participate in world trade?

How is the country’s currency determine how much it is worth when dealing with exchange rate?

For the month of October, France imports $1,000 worth of rice from Asia, $400 worth of Coffee from Columbia, and $500 worth of corn from the United States. France exports $700 worth of clothing to the United States. They also exported $400 worth of seafood to Canada. What is the balance of trade for France in the month of October? (Hint: Give the term, not the amount)

The United States government does not want its people to depend too much on oil as a country. To limit this from happening the government only allows so much into a country therefore there is a consistent amount throughout the year.

Which of the following reasons is a reason why a country would want to share items that they produce with other countries?

A country would place an embargo on another country due to which of the following reason(s)?

Since the United States is at war with Iraq, the US is more careful on what they trade to them. US would place what on exports to Iraq that might harm the soldiers or the country in any way?

In order to make sure the price of tennis shoe does not fluctuate too much, the government will make sure that only a limited amount of tennis shoes come into the country. That way there will not be a surplus or deficit of tennis shoes and the price should stay fairly consistent due to the supply and demand not changing much.

The government puts limits on foreign trade to protect businesses at home.

The ability of a country or company to produce a particular good more efficiently than another country or company.

Focus on a particular activity, area, or product

Exchange of goods and services across international boundaries

Which of the following items does the US not import from the proper country?

The United States produces their own cotton for t-shirt companies at a rate of $5.00 a pound. A country in Europe can produce cotton for $2.00 a pound. By the time shipping has been added to the price, it comes to about $3.00 per pound. What should the US government the US company does not go out of business.

Business that is done in multiple countries is called domestic business.

Zach Morris has some Mexican Pesos left over from his spring break vacation. Where does Zach need to go to exchange the Mexican Pesos for the American dollar?

Which of the following choices is a product that the United States NOT commonly export to other countries?

AC goes to Mexico for a vacation, he converts his American dollars into Pesos. What conversion rate would AC get when he went to exchange his money?

A country can have a trade deficit with two other countries but their overall balance of trade can still be a trade surplus.

The exchange rate between two countries currencies changes everyday.

Exports are goods and services that the country brings into the country to sell to other random people.

Which of the following things does free trade NOT offer to individuals?

Since the 1970’s World Trade has increased dramatically. Which of the following is NOT something that helped increase the trade?