Introduction to Business | Chapter 3 | openstax Flashcards
The United States buys copper from Chile’s Escondido copper mine. The copper is used to make wiring for the U.S. telecommunications industry and for many other purposes. For the U.S., the copper is an example of a(n):
Import
Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.
Import; export
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
Import
The _____ is defined as the difference in value of a country’s exports and imports over a period of time.
Balance of trade
A country that exports more goods than it imports is said to have a(n):
Favorable balance of trade
A country that imports more goods than it exports is said to have a(n):
Unfavorable balance of trade
In 2018, Austria exported $122.5 billion and imported products valued at $118.8 billion. Austria had a(n):
Favorable balance of trade
In 2018, Country A exported $84.9 billion and imported products valued at $74.69 billion. The difference between the dollar value of its exports and imports represents a:
Trade surplus
In 2018, Rwanda exported $98 million and imported products valued at $243 million. Rwanda has a(n):
Unfavorable balance of trade
In 2018, Country A exported $1.237 billion and imported products valued at $5.552 billion. The difference between the dollar value of its exports and imports represents a:
Trade deficit
In 2018, if the country of Serbia had imports of $10.58 billion and had an unfavorable balance of trade. This means that Serbia had:
Less than $10.58 billion in exports
In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:
More than $78.02 billion in exports
The difference between a country’s total payments to other countries and its total receipts from other countries is called its:
Balance of payments
Since the balance of payments is the summary of a country’s financial transactions with another country, a discussion of a nation’s balance of payments will need to include a discussion of:
A. Its government loans
B. Its imports and exports
C. All of the above
D. Its gifts and foreign aid
E. Its long-term overseas business investments
All of the above
Imagine you are trying to gather the information needed to calculate the balance of payments for an Eastern European country. To do your calculations, you would need to have information on all of the following EXCEPT:
A. Foreign aid the country receives
B. Tourist spending in the country
C. Military expenditures it makes in other countries
D. Its corporate tax rates
E. Its imports and exports
Its corporate tax rates