BUS 313 Study Guide Question and
answer rated A+ 2026
Globalization - correct answer ✔process of interaction and integration among the people, companies,
and governments of different nations.
-a process driven by international trade and investment and aided by information technology.
-can only be stopped by disaster (ex: wars)
Factor Movement - correct answer ✔capital; labor between countries
Consumer Surplus - correct answer ✔difference between the total amount that consumers are willing
and able to pay for a good or service (indicated by the demand curve) and the total amount that they
actually do pay (i.e. the market price).
-consumer benefit; total WTP vs. Market Price, measure of welfare
Producer Surplus - correct answer ✔producer benefit; (total amount received - price accepted by
producer)
Tariff - correct answer ✔tax on imports used to restrict trade, as they increase the price of imported
goods and services, making them more expensive to consumers
Quota - correct answer ✔Quantitative limit on imports. Help regulate the volume of trade between
countries and help reduce imports, increase domestic production which restricts foreign competition
Competitive Devaluation - correct answer ✔International affairs where countries seek to gain a trade
advantage over other countries by causing the exchange rate of their currency to fall in relation to other
currencies
answer rated A+ 2026
Globalization - correct answer ✔process of interaction and integration among the people, companies,
and governments of different nations.
-a process driven by international trade and investment and aided by information technology.
-can only be stopped by disaster (ex: wars)
Factor Movement - correct answer ✔capital; labor between countries
Consumer Surplus - correct answer ✔difference between the total amount that consumers are willing
and able to pay for a good or service (indicated by the demand curve) and the total amount that they
actually do pay (i.e. the market price).
-consumer benefit; total WTP vs. Market Price, measure of welfare
Producer Surplus - correct answer ✔producer benefit; (total amount received - price accepted by
producer)
Tariff - correct answer ✔tax on imports used to restrict trade, as they increase the price of imported
goods and services, making them more expensive to consumers
Quota - correct answer ✔Quantitative limit on imports. Help regulate the volume of trade between
countries and help reduce imports, increase domestic production which restricts foreign competition
Competitive Devaluation - correct answer ✔International affairs where countries seek to gain a trade
advantage over other countries by causing the exchange rate of their currency to fall in relation to other
currencies
