Theme 4 Test 3

What is International Trade

• Involves exporting and importing goods abroad.

• Involves exporting and importing goods within the UK

• Involves just importing goods from overseas

Watches made in Norway are worn by people in London.

• import

• export

Tires made in UK factories are used on cars in Germany.

• import

• export

Exports

• Goods produced in one country and sold in another

• Goods that are brought from producers overseas

Members agree to either reduce or eliminate trade barriers for a select number of goods or services, resulting in partial trade liberalisation. This is ......

• Preferential trade areas

• Free trade areas

• Customs unions

• Economic unions

Members agree to the removal of trade barriers as well as the freedom of movement of factors of production within the bloc.

• Customs unions

• Common markets

• Free trade areas

• Preferential trade areas

A free trade area is a group of countries that have removed most or all ........... and/or quotas

• Subsidies

• Embargo's

• Tariffs

• None of these

The EU is not a free trade area as such, but a .......................

• Common Market

• Customs Union

• Preferential Trade Area

• Economic Union

The members of a trading bloc make preferential ..................and sometimes political, arrangements to boost .................... within the member states.

• Economic

• Trade

• Business

• Legal

• Social

NAFTA is a ......

• Free Trade Area

• Preferential Trade Area

• Common Market

• Customs Union

• Economic Union