BUSN100 Unit Test 3 Global Business
Environment Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. Which statement best describes globalization in the business
environment?
A. The elimination of all national governments from economic activity
B. The restriction of business operations to domestic markets
C. The increasing integration and interdependence of economies,
markets, and businesses worldwide
D. The replacement of private businesses with international
organizations
Answer: C. The increasing integration and interdependence of
economies, markets, and businesses worldwide
Rationale: Globalization involves growing connections among
countries through trade, investment, technology, communication, and
movement of resources. Businesses increasingly operate within
markets influenced by events and decisions occurring in other
countries. Globalization does not eliminate national governments or
require businesses to operate internationally.
2. Which factor has contributed most directly to the growth of global
business?
,A. Advances in transportation and communication technology
B. Decreased access to international information
C. Increased restrictions on international trade
D. Elimination of cultural differences
Answer: A. Advances in transportation and communication technology
Rationale: Modern transportation and communication technologies
have reduced the time and cost required to move goods, information,
money, and services across borders. The internet, digital platforms,
containerized shipping, and improved air transportation have made
international business more practical and efficient.
3. What is an import?
A. A product produced domestically and sold abroad
B. A foreign investment made by a domestic company
C. A service provided by a domestic employee
D. A good or service purchased from another country
Answer: D. A good or service purchased from another country
Rationale: An import is a good or service purchased from a foreign
country and brought into the purchasing country's economy. For
example, if a company in the United States purchases machinery
manufactured in Germany, the machinery is an import for the United
States.
4. What is an export?
A. A foreign product purchased by domestic consumers
B. A good or service produced domestically and sold to buyers in
another country
C. A tax placed on foreign goods
D. A restriction on international investment
,Answer: B. A good or service produced domestically and sold to buyers
in another country
Rationale: An export is a domestically produced good or service sold to
customers in another country. Exports generate international sales
revenue and can contribute to economic growth, employment, and
foreign exchange earnings.
5. Which term refers to the difference between a country's total
exports and total imports of goods?
A. Balance of trade
B. Exchange rate
C. Gross domestic product
D. Purchasing power parity
Answer: A. Balance of trade
Rationale: The balance of trade measures the difference between the
value of goods a country exports and the value of goods it imports. A
trade surplus occurs when exports exceed imports, while a trade deficit
occurs when imports exceed exports.
6. What is a trade surplus?
A. When imports exceed exports
B. When a country stops international trade
C. When the value of exports exceeds the value of imports
D. When a country eliminates tariffs
Answer: C. When the value of exports exceeds the value of imports
Rationale: A trade surplus occurs when a country's exports are greater
in value than its imports over a specified period. The opposite
condition is a trade deficit. Trade balances can change because of
, exchange rates, consumer demand, production costs, economic
conditions, and government policies.
7. What is a trade deficit?
A. When the value of imports exceeds the value of exports
B. When exports and imports have exactly equal values
C. When a country exports no services
D. When foreign companies cannot enter a market
Answer: A. When the value of imports exceeds the value of exports
Rationale: A trade deficit occurs when a country purchases more goods
from foreign producers than it sells in goods to foreign buyers. A
deficit does not automatically mean an economy is unhealthy because
international investment, services, capital flows, and other economic
factors also influence economic performance.
8. Which organization was established to promote international trade
by providing rules for trade among member economies?
A. International Monetary Fund
B. World Bank
C. United Nations
D. World Trade Organization
Answer: D. World Trade Organization
Rationale: The World Trade Organization, or WTO, provides a
framework of international trade rules and serves as a forum for
negotiating trade agreements and resolving certain trade disputes. Its
activities focus primarily on international trade rather than
development financing or monetary policy.
9. What is a tariff?
Environment Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which statement best describes globalization in the business
environment?
A. The elimination of all national governments from economic activity
B. The restriction of business operations to domestic markets
C. The increasing integration and interdependence of economies,
markets, and businesses worldwide
D. The replacement of private businesses with international
organizations
Answer: C. The increasing integration and interdependence of
economies, markets, and businesses worldwide
Rationale: Globalization involves growing connections among
countries through trade, investment, technology, communication, and
movement of resources. Businesses increasingly operate within
markets influenced by events and decisions occurring in other
countries. Globalization does not eliminate national governments or
require businesses to operate internationally.
2. Which factor has contributed most directly to the growth of global
business?
,A. Advances in transportation and communication technology
B. Decreased access to international information
C. Increased restrictions on international trade
D. Elimination of cultural differences
Answer: A. Advances in transportation and communication technology
Rationale: Modern transportation and communication technologies
have reduced the time and cost required to move goods, information,
money, and services across borders. The internet, digital platforms,
containerized shipping, and improved air transportation have made
international business more practical and efficient.
3. What is an import?
A. A product produced domestically and sold abroad
B. A foreign investment made by a domestic company
C. A service provided by a domestic employee
D. A good or service purchased from another country
Answer: D. A good or service purchased from another country
Rationale: An import is a good or service purchased from a foreign
country and brought into the purchasing country's economy. For
example, if a company in the United States purchases machinery
manufactured in Germany, the machinery is an import for the United
States.
4. What is an export?
A. A foreign product purchased by domestic consumers
B. A good or service produced domestically and sold to buyers in
another country
C. A tax placed on foreign goods
D. A restriction on international investment
,Answer: B. A good or service produced domestically and sold to buyers
in another country
Rationale: An export is a domestically produced good or service sold to
customers in another country. Exports generate international sales
revenue and can contribute to economic growth, employment, and
foreign exchange earnings.
5. Which term refers to the difference between a country's total
exports and total imports of goods?
A. Balance of trade
B. Exchange rate
C. Gross domestic product
D. Purchasing power parity
Answer: A. Balance of trade
Rationale: The balance of trade measures the difference between the
value of goods a country exports and the value of goods it imports. A
trade surplus occurs when exports exceed imports, while a trade deficit
occurs when imports exceed exports.
6. What is a trade surplus?
A. When imports exceed exports
B. When a country stops international trade
C. When the value of exports exceeds the value of imports
D. When a country eliminates tariffs
Answer: C. When the value of exports exceeds the value of imports
Rationale: A trade surplus occurs when a country's exports are greater
in value than its imports over a specified period. The opposite
condition is a trade deficit. Trade balances can change because of
, exchange rates, consumer demand, production costs, economic
conditions, and government policies.
7. What is a trade deficit?
A. When the value of imports exceeds the value of exports
B. When exports and imports have exactly equal values
C. When a country exports no services
D. When foreign companies cannot enter a market
Answer: A. When the value of imports exceeds the value of exports
Rationale: A trade deficit occurs when a country purchases more goods
from foreign producers than it sells in goods to foreign buyers. A
deficit does not automatically mean an economy is unhealthy because
international investment, services, capital flows, and other economic
factors also influence economic performance.
8. Which organization was established to promote international trade
by providing rules for trade among member economies?
A. International Monetary Fund
B. World Bank
C. United Nations
D. World Trade Organization
Answer: D. World Trade Organization
Rationale: The World Trade Organization, or WTO, provides a
framework of international trade rules and serves as a forum for
negotiating trade agreements and resolving certain trade disputes. Its
activities focus primarily on international trade rather than
development financing or monetary policy.
9. What is a tariff?
