Question 1

Canada has a(n) ________in farming due to its fertile land, while South Korea has a(n) __________ in electronics manufacturing.
absolute advantage; absolute advantage
absolute advantage; comparative advantage
comparative advantage: absolute advantage
comparative advantage; comparative advantage
none of these

Accepted Answer

The answer of Canada has a(n) ________in farming due to...

Question 2

Which of the following items is least likely to impact a nation's balance of payments?
Gains or losses in exchanges of international currencies
An increase in the GDP
Money spent by tourists
Trade deficits or surpluses
Foreign aid programs

Accepted Answer

The answer of Which of the following items is least...

Question 3

The balance of trade that Canada has experienced has been
changing between favourable and unfavourable with about a seven year cycle.
unfavourable since Confederation.
favourable for most of the last thirty years.
unfavourable for the last thirty years.
favourable since Confederation.

Accepted Answer

The answer of The balance of trade that Canada has...

Question 4

Which of the following is correct with regard to the balance of trade and the balance of payments?
If a country has a favourable balance of trade, it will also have a favourable balance of payments.
The balance of payments is computed by dividing the value of a country's currency by the number of currency transactions that took place in the previous year.
A country that imports more than it exports has a favourable balance of trade.
Countries used to strive to have a favourable balance of trade, but governments no longer worry about that issue because of globalization.
Canada has generally had a favourable balance of trade during the last few decades.

Accepted Answer

The answer of Which of the following is correct with...

Question 5

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries. It has a
negative balance of payments.
comparative advantage.
positive balance of payments.
trade surplus.
trade deficit.

Accepted Answer

The answer of The Congo imported $150 billion worth of...

Question 6

As the value of a country's currency rises
domestic companies will have a harder time selling their products in foreign markets.
foreign companies will find it harder to sell their products in local markets.
imports and exports will remain relatively constant.
domestic companies will shift from the production of consumer goods to the production of industrial goods.
all of these will happen.

Accepted Answer

The answer of As the value of a country's currency...

Question 7

In the World Economic Forum's 2012‒13 global competitiveness ranking, Canada ranked
first.
second.
fourth.
sixth.
fourteenth.

Accepted Answer

The answer of In the World Economic Forum's 2012‒13 global...

Question 8

The balance of payments refers to
the relative difference between money flowing into and out of a country.
the difference in value between a country's total exports and its total imports.
the relative difference in value between a country's total exports and its total imports.
the difference between money flowing into and out of a country as a result of trade and other transactions.
the difference in exchange rates between two countries.

Accepted Answer

The answer of The balance of payments refers to
the relative...

Question 9

A nation's balance of trade is
the relative difference between money flowing into and out of a country.
the difference in value between a country's total exports and its total imports.
the relative difference in value between a country's total exports and its total imports.
the difference between money flowing into and out of a country.
the difference in exchange rates between two countries.

Accepted Answer

The answer of A nation's balance of trade is
the relative...

Question 10

The theory of national competitive advantage derives from all of the following conditions except
demand conditions.
supply conditions.
strategies, structures, and rivalries.
related and supporting industries.
factor conditions.

Accepted Answer

The answer of The theory of national competitive advantage derives...

Question 11

If the Canadian dollar becomes weak compared to the Japanese yen, which of the following is likely to occur?
Demand for goods would be unaffected by currency changes
Japanese products would become cheaper in Canada
It would take fewer dollars to buy the same number of yen
Canadian products would become less expensive in Japan
Japanese demand for goods from Canada would fall

Accepted Answer

The answer of If the Canadian dollar becomes weak compared...

Question 12

All of the following are included in the balance of payments except
money paid for imports.
money paid by domestic corporations for taxes.
money spent by tourists.
money spent on foreign aid.
money paid for exports.

Accepted Answer

The answer of All of the following are included in...

Question 13

Which of the following best explains why a nation like Canada or Japan would export a particular product or service?
That nation has multinational companies
That nation has an absolute advantage
That nation has a positive balance of trade
That nation has a negative balance of trade
All of these

Accepted Answer

The answer of Which of the following best explains why...

Question 14

If there is a favourable balance of payments, it means that
a country exports manufactured goods and imports raw materials.
a country imports more than it exports for each country with which it trades.
a country exports more than it imports for each country with which it trades.
the country has more money flowing into it than out as a result of trade and other transactions.
a country exports raw materials and imports manufactured goods.

Accepted Answer

The answer of If there is a favourable balance of...

Question 15

As the value of a country's currency falls, its balance of trade should
decline.
remain the same.
improve.
either increase or decrease.
none of these.

Accepted Answer

The answer of As the value of a country's currency...

Question 16

If Japan's total exports are $12 billion and total imports are $4 billion, then this is called
a trade deficit.
a positive balance of trade.
an absolute advantage.
a negative balance of payments.
negative capital mobility.

Accepted Answer

The answer of If Japan's total exports are $12 billion...

Question 17

The difference between absolute and comparative advantages is that absolute advantage is relative to ________, while comparative advantage is relative to ________.
other nations; activity inside the country
similar industries; dissimilar industries
similar products; dissimilar products
activity inside the country; other nations
dissimilar products; similar products

Accepted Answer

The answer of The difference between absolute and comparative advantages...

Question 18

According to the World Economic Forum's global competitiveness ranking, the top three countries in 2012‒13 were
China, India, and Ireland.
Finland, Switzerland, and Singapore.
the U.S., Canada, and Australia.
Ireland, Iceland, and Sweden.
China, Singapore, and Japan.

Accepted Answer

The answer of According to the World Economic Forum's global...

Question 19

Which of the following best explains why a nation exports specific products and services?
Whether the nation has international companies
Whether a nation has a trade surplus
Whether a nation has an absolute advantage
Whether a nation has a balance of trade
The level of the country's GNP

Accepted Answer

The answer of Which of the following best explains why...

Question 20

Which of the following is correct with regard to Canada's balance of trade?
Canada has had a favourable balance of trade for many years, with 2012 seeing the largest ever recorded.
The U.K. is Canada's largest trading partner.
Canada's generally favourable trade balance over the years has occurred because our unfavourable balance of trade with the U.S. is offset by our favourable balance of trade with most other countries.
Canada's unfavourable balance of trade in 2012 was due partly to the increase in the value of the U.S. dollar.
None of these are accurate.

Accepted Answer

The answer of Which of the following is correct with...

Quiz 5: The Global Context of Business

Canada has a(n) in farming due to its fertile land, while South Korea has a(n) __ in electronics manufacturing. absolute advantage; absolute advantage absolute advantage; comparative advantage comparative advantage: absolute advantage comparative advantage; comparative advantage none of these

Which of the following items is least likely to impact a nation's balance of payments? Gains or losses in exchanges of international currencies An increase in the GDP Money spent by tourists Trade deficits or surpluses Foreign aid programs

The balance of trade that Canada has experienced has been changing between favourable and unfavourable with about a seven year cycle. unfavourable since Confederation. favourable for most of the last thirty years. unfavourable for the last thirty years. favourable since Confederation.

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries. It has a negative balance of payments. comparative advantage. positive balance of payments. trade surplus. trade deficit.

In the World Economic Forum's 2012‒13 global competitiveness ranking, Canada ranked first. second. fourth. sixth. fourteenth.

The theory of national competitive advantage derives from all of the following conditions except demand conditions. supply conditions. strategies, structures, and rivalries. related and supporting industries. factor conditions.

All of the following are included in the balance of payments except money paid for imports. money paid by domestic corporations for taxes. money spent by tourists. money spent on foreign aid. money paid for exports.

Which of the following best explains why a nation like Canada or Japan would export a particular product or service? That nation has multinational companies That nation has an absolute advantage That nation has a positive balance of trade That nation has a negative balance of trade All of these

As the value of a country's currency falls, its balance of trade should decline. remain the same. improve. either increase or decrease. none of these.

If Japan's total exports are $12 billion and total imports are $4 billion, then this is called a trade deficit. a positive balance of trade. an absolute advantage. a negative balance of payments. negative capital mobility.

According to the World Economic Forum's global competitiveness ranking, the top three countries in 2012‒13 were China, India, and Ireland. Finland, Switzerland, and Singapore. the U.S., Canada, and Australia. Ireland, Iceland, and Sweden. China, Singapore, and Japan.

Which of the following best explains why a nation exports specific products and services? Whether the nation has international companies Whether a nation has a trade surplus Whether a nation has an absolute advantage Whether a nation has a balance of trade The level of the country's GNP