Question

which of the following would likely cause the value of the dollar to rise? *
o an increased u.s. trade deficit
o higher u.s. interest rates
o lower u.s. inflation
o saudi arabia doubles the price of the oil it sells the u.s.

danielles company is expanding into korea and has asked her to research the language, customs, and values of the korean people. which aspect of the international business environment is danielle investigating?
o geography
o economic development
o political and legal concerns
o cultural influences

infrastructure refers to a countrys . *
o educational system
o system of local government
o transportation, communication, and utility systems
o legal system

Explanation:

1. First question:

• An increased U.S. trade deficit means the U.S. is importing more than exporting. This usually puts downward pressure on the dollar as more dollars are supplied in the foreign - exchange market to pay for imports.
• Higher U.S. interest rates attract foreign investors. They need to buy dollars to invest in U.S. assets, increasing the demand for dollars and causing its value to rise.
• Lower U.S. inflation makes U.S. goods relatively more competitive in the long - run, but the direct impact on the dollar's value is more complex and not as straightforward as interest rates.
• Saudi Arabia doubling the price of oil sold to the U.S. would likely increase the U.S. trade deficit (as more dollars are used to buy oil) and put downward pressure on the dollar.

1. Second question:

• Language, customs, and values are all part of a culture. So, when Danielle is researching these aspects, she is investigating cultural influences. Geography would involve physical location, climate, etc. Economic development would relate to GDP, income levels, etc. Political and legal concerns would involve laws, government policies, etc.

1. Third question:

• Infrastructure is defined as a country's transportation (roads, railways, ports), communication (telecommunication networks), and utility systems (power grids, water supply systems). An educational system is part of human capital development. A system of local government is a political structure. A legal system is part of the governance and regulatory framework.

Answer:

1. B. higher U.S. interest rates
2. D. cultural influences
3. C. transportation, communication, and utility systems