International Trade and Globalization

Fixed and floating are both types of what?

• Exchange Rates
• Trade Barriers
• Opportunity Costs
• Trade Deficits

_____ are taxes on _____.

• Quotas, exports
• Quotas, imports
• Tariffs, exports
• Tariffs, imports

According to economists, international trade among countries ___.

• increases the chance of conflict because of competition
• increases the chance of conflict because of economic rivalry
• decreases the chance of conflict because of economic advantages
• decreases the chance of conflict because of floating exchange

What does a protective tariff seek to protect?

• Protectionists
• Free Trade
• Revenue
• Domestic Industries

Which of the following is most directly affected by an embargo established by the United States?

• U.S. tariffs
• U.S. exports
• U.S. imports
• U.S. free traders

Why do nations trade?

• so they can specialize
• because they believe that the products they receive are worth more than the products they give up
• because they need to acquire certain raw materials
• all are correct

Exchange rates among the currencies of the world change _____.

• Constantly
• Rarely
• Annually
• Slowly

Country A can produce more coal than Country B. An economist would say that Country A has ______ over country B.

• an export advantage
• a comparative advantage
• an absolute advantage
• a production possibility advantage

What would a free-trader most likely support?

• the infant industries argument
• a revenue tariff
• NAFTA
• an embargo

Which of the following statements best describes trade between two nations?

• It is mutually beneficial
• It is legally required
• It avoids specialization
• It involves low cost for both nations