How is a tariff best described?

• A tax on imports
• A violation of human rights
• Comparative Advantage
• Contributing to a favorable balance of trade

What is the principle of comparative advantage best described as governing?

• Developed countries
• Multinational conglomerates
• The WTO
• International trade

A nation may put a limit on the amount of foreign goods imported by placing a _____ on these goods.

• Export
• Quota
• Deficit
• Trade Surplus

The ability of a country to produce a product at a lower cost than another country is called...

• Free trade
• Comparative Advantage
• Balance of trade
• Import quota

NAFTA was made among...

• The U.S., Canada, and Mexico
• European Countries
• Developing Countries
• The U.S., Russia, and China

Why do some countries have trade barriers?

• To encourage trade
• To do away with quotas
• To become communist
• To protect their economies

The policy of _____ involves a nation guarding its own industries against outside competition.

• Internationalism
• Protectionism
• Globalization
• Sanctions

An important force that is driving globalization are multinationals, which are...

• UN peacekeeping forces
• Large firms that do business in many countries
• Organizations that promote conservation
• Made up of business leaders from developing countries

Which organization provides loans to developing countries for capital projects?

• The IMF
• The WTO
• The GATT
• The World Bank

What is globalization?

• Banana
• Orange
• Apple
• The increased integration of people from all around the world