| A | B |
|---|
| The six-step decision making process is only for making business decisions. | False |
| In this type of economy, individual companies and consumers make the decisions about what, how and for whom items will be produced. | market economy |
| The three types of resources used to produce goods are | natural resources, human resources, capital resources |
| In market economies, most economic decisions are made by the government. | False |
| When two countries are being compared, the one with the Higher total GDP typically has the stronger economy. | True |
| Gold and silver are examples of natural resources | True |
| Products that a seller sells in other countries are called | exports |
| Economics is the study of how | limited resources are used to satisfy unlimited wants and needs |
| The following items are three main influences on a country's economic development | Agricultural dependency, Literacy level and Technology |
| An example of global dependency is when items that consumers need and want are created in other countries | True |
| If consumers want more of a good than the amount supplied | The price will increase |
| Balance of trade is calculated by | subtracting total imports from total exports |
| A nation's transportation, communications, and utility systems are called | infrastructure |
| Name the benefits of global business | improved political relationships, expanded business opportunities and increased sources of raw materials |
| International business involves the buying and selling of products and services among countries. | True |
| South Africa has a large percentage of the world's diamond deposits. This is an example of | absolute advantage |
| Scarcity refers to not having enough resources to fulfill everyone's needs. | True |
| Name two of the basic causes of inflation | When the expenses of a business increase and when demand exceeds supply, prices go up |
| International Business | All business activities needed to create, ship, and sell goods and services across national borders |
| Trade Barrier | Restriction that reduces free trade among countries |
| Culture | The acceptable behaviors, custom, and values of a society |
| Inflation | An increase in the average price of goods and services in a country |
| Import | A product bought from businesses in other countries |
| Market Price | The point at which supply and demand cross |
| Privatization | The process of changing an industry from publicly to privately owned |
| Export | A product sold to consumers in other countries |
| Balance of Trade | The difference between a country's imports and exports |
| Foreign Debt | Amount a country owes to other countries |
| Foreign Exchange Rate | The value of one country's money in relation to the value of money in another country |
| Economics | The study of how people choose to use limited resources to satisfy their unlimited needs and wants |
| An example of international business is when a person living in Canada buys a product made in Germany. | True |
| International trade usually reduces the product choices available to consumers. | False |
| A less developed country (LDC) is | a country with little economic wealth |
| These indicators evaluate the economy progress of a country | Gross Domestic Product (GDP), Gross National Product (GNP) and Unemployment |
| Free trade among countries can be restricted by | import taxes, laws preventing entry, and import quotas |
| The first step in the decision-making process is to define the problem. | True |
| Historically, international business | probably occurred as long as 15,000 years ago |
