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Question :

(TCO 3) An unfavorable balance of trade occurs when the value of: Student Answer: imports equals the value of exports CORRECT imports exceeds the value of exports cash inflows are equal to the value of cash outflows exports exceed the value of imports Instructor Explanation: Chapter 3 Page 64 Points Received: 1 of 1 Comments: 2. Question :

(TCO 3) The difference between money coming into a country (from exports) and mo ney leaving the country (for imports) plus money flows from other factors such a s tourism, foreign aid, and military expenditures is referred to as the: Student Answer: CORRECT balance of payments balance of trade balance of money flows exchange rate Instructor Explanation: Chapter 3 Page 64 Points Received: 1 of 1 Comments: 3. Question :

(TCO 3) The theory of comparative advantage exists because: Student Answer: there are too many products and services to choose from today customers are always comparing the quality of service fr om companies in the same industry CORRECT no nation can produce all the products its peopl e want and need free trade agreements became the trend during the past 1 5 years Instructor Explanation: Chapter 3 Page 61 Points Received: 1 of 1 Comments: 4. Question :

(TCO 3) An American firm recently criticized a Chinese steel producer for chargi ng a lower price for its products in the United States than it charges in China. If proven to be true, the Chinese firm has engaged in: Student Answer: industrial protectionism a low labor cost strategy CORRECT dumping exchange rate manipulation Instructor Explanation: Chapter 3 Page 65 Points Received: 1 of 1 Comments: 5. Question :

(TCO 1) Casey is typical of many U.S. businesspeople. Casey feels the U.S. cultu re defines the model for the rest of the world, and that the American way of doi ng things is the best. Casey is guilty of: Student Answer: ethnic plagiarism CORRECT ethnocentricity culture shoc

 

retailer. Question : (TCO 3) Hennessy Hardware.counter culture Instructor Explanation: Chapter 3 Page 72 Points Received: 1 of 1 Comments: 6. buys much of its inventory from Asia n countries.S. a U. Hennessy Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports Student Answer: CORRECT rose fell remained constant floated unpredictably Instructor Explanation: Chapter 3 Page 74 Points Received: 1 of 1 Comments: .

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