Trade: Introduction

Open Ended

What is trade?

Open Ended

Why is free trade important for the production of everyday items like clothing?

Multiple Select

Which of the following are principles that WTO agreements are meant to uphold?

• Trade should be nondiscriminatory between foreign and domestic products and between different countries

• Trade should be unpredictable and secretive

• Trade should be more competitive

• Trade should be better for the environment

Multiple Choice

What is the main purpose of the World Trade Organization (WTO)?

• To regulate trade between countries and create global trade rules

• To set prices for all international goods

• To control the production of goods in each country

• To eliminate all forms of trade

Multiple Choice

After the United States signed the North American Free Trade Agreement in 1992, what happened to the tariff on Mexican brooms made of corn?

• It was increased to 50 percent

• It was slashed to 22 percent

• It was eliminated completely

• It was replaced with a quota immediately

Open Ended

What are some reasons countries might choose to implement trade barriers such as tariffs or quotas?

Open Ended

Explain how tariffs and quotas can impact international trade. Use examples from the slides to support your answer.

Open Ended

Explain how the U.S. government's intervention in the dairy industry in the 1970s affected both farmers and the market for dairy products.

Multiple Choice

Which of the following best describes the purpose of government subsidies?

• To support struggling domestic industries or stabilize prices

• To encourage citizens to save more money

• To increase foreign competition

• To reduce government spending

Multiple Select

Which of the following are reasons countries might manipulate their currency?

• To encourage exports by making domestic products cheaper

• To increase the value of imports

• To make foreign goods more expensive for domestic consumers

• To stabilize the domestic job market

Multiple Choice

Why might a government place export controls on certain products during a pandemic?

• To protect national interests and ensure adequate domestic supply

• To increase exports for economic growth

• To encourage foreign investment

• To reduce the price of exports

Open Ended

Discuss the intended and unintended consequences of sanctions, using the example of U.S. sanctions on Iran.

Open Ended

How does globalization influence the production and trade of everyday items such as clothing?

Open Ended

Why do countries often put up trade barriers, and what are some of the unintended consequences of these barriers according to the summary?