1. All of the following are benefits of international business except a) expanded business opportunities. b) increased sources of raw materials. c) decreased competition. d) improved political relationships. 2. Free trade among countries can be restricted by a) import taxes. b) trade barriers. c) import quotas. d) all of the above 3. Business activities that occur within one country are called a) foreign trade. b) domestic business. c) international business. d) free trade. 4. An example of exporting would be a) products made and sold in Japan. b) a European country's tax on products made in other countries. c) products that were made in Poland and bought by Polish consumers. d) products sold by a company in Italy for purchase by Australian consumers. 5. An example of a trade barrier would be a) efforts by a government to encourage exporting among businesses in its country. b) consumers who prefer to buy products from domestic companies rather than foreign companies. c) a limit on the number of foreign automobiles a country allows to be imported. d) a sales tax on products made and sold within a country. 6. A cultural factor affecting international business activities would be a) the availability of natural resources. b) government policies toward business. c) stability of the money supply. d) family relationships. 7. International business most commonly affects consumers by creating a) a greater variety of buying choices. b) fewer buying choices. c) a change in taxes. d) fewer stores to shop in. 8. Which of the following situations is likely to generate inflation at national or international levels? a) a rise in the prices of food and housing only b) an increase in national budget deficit and debt c) both of the above d) neither of the above Page 1 of 10Swinburne Higher Education Exam TP 3, 2014 INB10002 – Foundations of International Business 9. The consumer price index shows a) how many consumer products a particular foreign currency can purchase. b) price levels for various products and services. c) the total price of the goods and services produced by a country in a period of time. d) none of the above 10. The unemployment rate is an indicator of a country's economic situation because a) people not earning an income reduce the flow of money in circulation. b) fewer goods and services are produced when there is high unemployment. c) a high unemployment rate can cause other people to lose their jobs. d) all of the above 11.