BUS 201 - CHAPTER 5 QUESTIONS WITH ACCURATE
ANSWERS
Absolute Advantage correct answer The ability to produce something more
efficiently than any other country
Balance of Payments correct answer Flow of all money into or out of a country
Balance of Trade correct answer The economic value of all the products that a
country exports minus the economic value of all the products it imports
Branch Office correct answer A location that an exporting firm establishes in a
foreign country to sell its products more effectively
BRICS correct answer A term denoting a group of five important and powerful
emerging markets in the business world: Brazil, Russia, India, China, and South
Africa
Business-Practice Law correct answer Law or regulation governing business
practices in given countries
Cartel correct answer Any association of producers whose purpose is to control
supply of and prices for a given product
Comparative Advantage correct answer The ability to produce some products
more efficiently than others
, Deficit correct answer Situation in which a country's imports exceed its exports,
creating a negative balance of trade
Dumping correct answer Selling a product for less abroad than in the producing
nation
Embargo correct answer A government order forbidding exportation and/or
importation of a particular product
Euro correct answer A common currency shared among most of the members of
the European Union
European Union (EU) correct answer Agreement among major Western European
nations to eliminate or make uniform most trade barriers
affecting group members
Exchange Rates correct answer Rate at which the currency of one nation can be
exchanged for the currency of another nation
Export correct answer Product made or grown domestically but shipped and
sold abroad
Exporter correct answer Firm that distributes and sells products to one or more
foreign countries
ANSWERS
Absolute Advantage correct answer The ability to produce something more
efficiently than any other country
Balance of Payments correct answer Flow of all money into or out of a country
Balance of Trade correct answer The economic value of all the products that a
country exports minus the economic value of all the products it imports
Branch Office correct answer A location that an exporting firm establishes in a
foreign country to sell its products more effectively
BRICS correct answer A term denoting a group of five important and powerful
emerging markets in the business world: Brazil, Russia, India, China, and South
Africa
Business-Practice Law correct answer Law or regulation governing business
practices in given countries
Cartel correct answer Any association of producers whose purpose is to control
supply of and prices for a given product
Comparative Advantage correct answer The ability to produce some products
more efficiently than others
, Deficit correct answer Situation in which a country's imports exceed its exports,
creating a negative balance of trade
Dumping correct answer Selling a product for less abroad than in the producing
nation
Embargo correct answer A government order forbidding exportation and/or
importation of a particular product
Euro correct answer A common currency shared among most of the members of
the European Union
European Union (EU) correct answer Agreement among major Western European
nations to eliminate or make uniform most trade barriers
affecting group members
Exchange Rates correct answer Rate at which the currency of one nation can be
exchanged for the currency of another nation
Export correct answer Product made or grown domestically but shipped and
sold abroad
Exporter correct answer Firm that distributes and sells products to one or more
foreign countries
