Name: Email Address: BUS-115 Introduction to BusinessChapter 3 – Exploring Global Business25-pointsTrue/False & Multiple-Choice Questions – 20-pointsSelect the ONE best answer. Mark your answers below (True=A, False=B): 1. A B C D E2. A B C D E3. A B C D E4. A B C D E5. A B C D E6. A B C D E7. A B C D E8. A B C D E9. A B C D E10. A B C D E11. A B C D E12. A B C D E13. A B C D E14. A B C D E15. A B C D E16. A B C D E17. A B C D E18. A B C D E19. A B C D E20. A B C D E1. True or False? The ability to produce a specific product more efficiently than any other nation is called comparative advantage.2. True or False? International business consists of all business activities that involve exchanges across national boundaries.3. True or False? The balance of trade is the total value of a country’s exports less thetotal value of its imports over some period of time.Page 1 of 54. True or False? An argument for trade restriction is that it protects national security.5. True or False? The General Agreement on Tariffs and Trade is an international organization whose goal is to reduce or eliminate tariffs and other barriers to world trade.6. True or False? An absolute advantage is the ability to produce a specific product more efficiently than any other products.7. True or False? The balance of payments is the total value of a country’s exports less the total value of its imports.8. True or False? Exporting is purchasing raw materials or products in other nations and bringing them into one’s own country.9. True or False? An argument against trade restrictions is that they limit consumers’ choices.10.True or False? Licensing is a contractual agreement in which one firm permits another to produce and market its product and to use its brand name in return for aroyalty or other compensation.11.The selling and shipping of raw materials or products to other nations is calleda. importing.b. exporting.c. balance of trade.d. balance of payments.e. dumping.12.A type of trade restriction that limits the amount of a particular good that may be imported into a country during a given period of time isa. a tariff.b. an import quota.c. an embargo.d. foreign-exchange control.e. currency devaluation.13.An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies isa. European Free Trade Organization.b. a. a global community.c. an economic community.d. an international economic organization.e. a strategic alliance of nations.Page 2 of 514.A firm that operates on a worldwide scale is calleda. a multinational enterprise.b. a multilateral development.c. the Export-Import Bank of the United States.d. the International Monetary Fund.e. a strategic alliance.15.Which of the following arranges the sale of products to foreign intermediaries for a commission or fee?a. Export/import merchantb. Export/import agentc. Sales office or branchesd. Joint venturee. Franchisor16.A reduction of the value of a nation’s currency relative to the currencies of other countries is calleda. an embargo.b. foreign-exchange control.c. currency devaluation.d. a quota.e. currency appreciation.17.Which of the following extends and guarantees credit to overseas buyers of American goods and services, guarantees short-term financing for export, and discounts negotiable instruments that arise from export transactions?a. Eximbankb. International Monetary Fundc. Multilateral development banksd. Bank of Washington, D.C.e. National Trade Data BankPage 3 of 518.An argument against trade restriction isa. to retaliate for another nation’s trade restrictions.b. to protect new or weak industries.c. to protect national security.d. misallocation of international resources.e. to protect the health of citizens.19.An international bank that makes short-term loans to countries experiencing balanceof payment deficits is thea. Eximbank.b. International Monetary Fund.c. Export-Import Bank of the United States.d. multilateral development bank.e. World Bank.20.A partnership with a foreign country that can provide immediate market knowledge and access, reduced risk, and control over product attributes is a(n)a. multinational enterprise.b. economic community.c. joint venture.d. syndicate.e. counter trade.Turn the page…Page 4 of 5Discussion Question – 5-points1. What reasons generally are given for imposig trade restrictions?a. b. c. d. e. f. g. What are the general effects of import restrictions on trade? Page 5 of