Competing in the Global Marketplace

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(TCO 3) The value of goods imported into France exceeds the value of French exports. This indicates that France: (Points : 1) will experience an exchange rate decrease
utilizes high tariffs
will incur a budget deficit
has a balance of trade deficit

2. (TCO 3) Which of the following is included when calculating a country's balance of payments? (Points : 1) Foreign aid
Domestic unemployment
Domestic inflation rates
Foreign inflation rates

3. (TCO 3) Country A is an extremely efficient producer of tin. However, its climate and terrain make it difficult to produce corn. According to the theory of comparative advantage, Country A should: (Points : 1) produce both tin and corn in order to remain self-sufficient watch the global market to see which product is bringing the highest price import the resources needed to produce corn

concentrate its production on tin and buy corn from an efficient producer

4. (TCO 3) An American firm recently criticized a Chinese steel producer for charging a lower price for its products in the United States than it charges in China. If proven to be true, the Chinese firm has engaged in: (Points : 1) industrial protectionism

a low labor cost strategy
exchange rate manipulation

5. (TCO 1) Foreigners sometimes comment on the ethnocentric attitudes of U.S. businesspeople. This indicates that American businesspeople: (Points : 1) follow the philosophy of "when in Rome, do as the Romans do" quickly accept the suggestions and ideas of others

believe their culture is superior to all others
take pride in the many ethnic groups that make America a melting pot

6. (TCO 3) The European Union created a single monetary unit to replace the national currencies of twelve member nations. This common currency is known as the: (Points : 1) e-dollar
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