1. An example of domestic business is when a person living in Canada buys a product made in Germany.
ANS: F PTS: 1
2. Products sold by companies in the United States to customers in India are exports.
ANS: T PTS: 1
3. International trade usually reduces the product choices available to consumers.
ANS: F PTS: 1
4. When consumers in the United States buy products made in Poland, they are buying imported goods.
ANS: T PTS: 1
5. Religious beliefs are not likely to influence international business activities.
ANS: F PTS: 1
6. Import taxes are a form of trade barrier.
ANS: T PTS: 1
7. Expanded international business activities make different types of jobs available for workers.
ANS: T PTS: 1
8. International business makes it possible for a company to increase sales by selling to customers in
other countries.
ANS: T PTS: 1
9. Individuals, businesses, and countries all face the basic economic problem of limited resources to
satisfy needs and wants.
ANS: T PTS: 1
10. International business can help to improve political relations among countries.
ANS: T PTS: 1
11. International business started when many transportation and communication inventions occurred in the
1800s.
ANS: F PTS: 1
12. Culture refers to the type of government of a country.
, ANS: F PTS: 1
13. Family relationships and religious activities influence the culture of a society.
ANS: T PTS: 1
14. The availability of natural resources affects the economic conditions of a country.
ANS: T PTS: 1
15. As a country expands its international trade activities, the choice of goods available to consumers in
that country usually decreases.
ANS: F PTS: 1
MULTIPLE CHOICE
1. A global dependency exists when
a. massive crop failures require buying food from another country.
b. a country buys tools from another country because it does not have the technology to
make the tools.
c. doctors travel to another country to provide healthcare because there is a shortage of
medically-trained professionals in that country.
d. all of the above
ANS: D PTS: 1
2. Historically, international business
a. is a relatively new concept made possible by communications technology.
b. probably occurred as long as 15,000 years ago.
c. declined when European countries created colonies on other continents.
d. none of the above
ANS: B PTS: 1
3. All of the following are benefits of international business except
a. expanded business opportunities. c. decreased competition.
b. increased sources of raw materials. d. improved political relationships.
ANS: C PTS: 1
4. Free trade among countries can be restricted by
a. import taxes. c. import quotas.
b. trade barriers. d. all of the above
ANS: D PTS: 1
5. An example of a cultural factor that can affect international business is
a. the weather is too hot for selling ice cream products without refrigeration units.
b. consumer protection laws require expensive packaging.
c. the major religion prohibits the use of alcohol in any food products.
d. none of the above
ANS: C PTS: 1
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