Marketing Chapter 4

There are five main types of trade barriers.

• True
• False

The difference in value between exports and imports of a nation is called international trade.

• True
• False

Protectionism is the opposite of free trade.

• True
• False

NAFTA is an international trade agreement among the U.S., Canada, and Mexico.

• True
• False

Inflation refers to a period of economic slowdown.

• True
• False

If a U.S. company imports wine from Italy, it can pay the Italian exporter in U.S. dollars.

• True
• False

When a country imports more than it exports, it has a trade surplus.

• True
• False

In 1989 the U.S. stopped importing grapes from Chile for one week after inspectors found poisoned fruit in one shipment. What is such an action called?

• trade quota
• trade embargo
• trade tariff
• trade surplus

What is the agency that was creted to police the General Agreement on Tariffs and Trade (GATT)?

• U.S. Customs Service
• World Trade Organization
• Federal Trade Commission
• United Nations Trade Group

What did the U.S. government use to produce revenue before it imposed income taxes on its labor force?

• quota
• exports
• embargoes
• tariffs