BUS-115 Introduction to BusinessQuiz 2Pick the ONE best answer for each of the following 10-questions.Mark your answer clearly on the Scantron answer sheet1. When South America produces coffee and exports it to the rest of the world, what advantage does it have?a. Absolute advantage b. Comparative advantagec. Economic advantaged. Trade deficite. Postitive balance of trade. 2. An unfavorable trade balance is calleda. a balance of trade.b. a trade deficit. c. dumping.d. a balance of payments.e. currency devaluation. 3. If the United States exports $100 worth of diamonds to the Kingdom of Mocha and imports $80 worth of bows and arrows, it has a(n)a. unfavorable balance of trade.b. trade deficit.c. trade surplus.d. negative cash flow. e. export slide. 4. A tax levied on a foreign product entering this country is called a(n)a. tariff.b. quota. c. Export control.d. embargo.e. export. Page 1 of 35. Which of the following is NOT a reason why a country might want to restrict its trade with other countries?a. to retaliate for another nation’s trade restrictions.b. to protect new or weak industries.c. to protect national security.d. To encourage competition for local manufacturerse. to protect the health of citizens.6. The phrase ‘the world is flat’ is best explained by which of the following statements:a. A rapid build-up of greenhouse gases has increased atmospheric pressure near the equator causing the earth to slightly flatten there which has resulted in increased rates of earthquakes and tsunamis.b. Global warming is negatively affecting economic growth in the northern latitudes (similar to the effect of trying to drive a car that has a flat tire).c. The convergence of several technological and political forces producing a global web-enabled economy that allows multiple forms of collaboration without regard to geography or distance.d. Microsoft’s world-wide software dominance (Windows) has been virtually flattened by the recent introduction of Netscape’s Linux (as one expert noted, ‘Netscape flattened Microsoft’s world-wide dominance like a ton of bricks’).e. None of the above (dude, the world is round, not flat…).Page 2 of 37. "India appears well positioned to compete in the 21st century global economy." Which of the following statements is NOT a reason?a. India has many educated people who also speak English. b. India's day is exactly opposite the U.S.'s (over-night out-sourcing).c. India has an abundance of fiber optic cable which allows low cost transmission of data.d. India has the most people in the world 8. Which of the following is NOT a reason for Netscape being one of the 10- flatteners?a. Netscape invented the Internet for the defense department (a project to protect the U.S.’s communication system in the event of nuclear war).b. Netscape made the Internet much easier to use with its web browser.c. Netscape used a series of open protocols so that no one company (example: Microsoft) could own the Net.d. Netscape set off the dot.com bubble.9. According to Robyn Meredith (author of The Elephant and the Dragon), a. New York is central to the worldwide supply chainb. Bentonville, Arkansas is central to the worldwide supply chainc. Tokyo is central to the worldwide supply chain.d. Hong Kong is central to the worldwide supply chain.e. Singapore is central to the worldwide supply chain.10. Which of the following statements is FALSE?a. Globalization is largely responsible for increased worldwide CO2 and pollution.b. Globalization is responsible for the loss of manufacturing jobs in developed countries.c. Globalization has led to rapid population increase in the cities of developing countries.d. China is the elephant and India is the dragon.e. After decades of slow growth, India is finally following China’s example and modernizing its economy.Page 3 of