ITB Chapter 3 Exam with Accurate
Solutions
items brought from other countries - ANSWER-import
good and services sold to other countries - ANSWER-export
difference between a country's total imports and exports - ANSWER-balance of trade
difference between the amount of money that comes into a country and the amount that
goes out - ANSWER-balance of payments
value of a currency in one country compared with the value in another country -
ANSWER-exchange rate
the making, buying, and selling the goods within a country - ANSWER-domestic
business
business activities needed for creating, shipping, and selling goods and services across
national borders - ANSWER-international business
exists when a country can produce a good or service at a lower cost than other
countries - ANSWER-absolute advantage
a situation in which a country specializes in the production of a good or service -
ANSWER-comapartive advantage
a country exports more than it imports - ANSWER-trade surplus
a country imports more than it exports - ANSWER-trade deficit
nation receives more money than it pays out - ANSWER-positive balance of trade
a country spends more than it brings in - ANSWER-negative balance of trade
refers to a nation's transportation, communication, and utility systems - ANSWER-
infastructure
restrictions to free trade - ANSWER-trade barrier
Solutions
items brought from other countries - ANSWER-import
good and services sold to other countries - ANSWER-export
difference between a country's total imports and exports - ANSWER-balance of trade
difference between the amount of money that comes into a country and the amount that
goes out - ANSWER-balance of payments
value of a currency in one country compared with the value in another country -
ANSWER-exchange rate
the making, buying, and selling the goods within a country - ANSWER-domestic
business
business activities needed for creating, shipping, and selling goods and services across
national borders - ANSWER-international business
exists when a country can produce a good or service at a lower cost than other
countries - ANSWER-absolute advantage
a situation in which a country specializes in the production of a good or service -
ANSWER-comapartive advantage
a country exports more than it imports - ANSWER-trade surplus
a country imports more than it exports - ANSWER-trade deficit
nation receives more money than it pays out - ANSWER-positive balance of trade
a country spends more than it brings in - ANSWER-negative balance of trade
refers to a nation's transportation, communication, and utility systems - ANSWER-
infastructure
restrictions to free trade - ANSWER-trade barrier
