International Trade pt. 2

1. Toyotas are made in Mexico and then shipped to the USA. Toyotas are an to Mexico and an to the United States.

• Export, Export

• Export, Import

• Import, Export

• Import, Import

If a country’s currency changes value based on the supply and demand for that currency (example: the US Dollar), what type of exchange rate does it have?

• Hooking exchange rate

• Floating exchange rate

• Grounded exchange rate

• Fixed exchange rate

Which is not a barrier to trade?

• NAFTA

• QUOTA

• TARIFF

• EMBARGO

Which is an economic and trade agreement between European countries?

• NAFTA

• EU

• ASEAN

• WTO

__________ has decreased over the last 100 years because a Hersey’s chocolate bar used to cost $.05 and now costs $1.00.

• Inflation

• Purchasing Power

• Exchange Rate

• International Trade

The US government requires that all imported toys have no lead paint on them. This is an example of what?

• Embargos

• Tariffs

• Standards

• Subsidies

Which of the following would encourage customers to buy American-made products?

• Tariffs

• All of these answer choices

• Quotas

• Subsidies

What is the "balance of trade"?

• The rate that a country trades with another country

• The rate at which a country produces its own products

• The rate at which a country exchanges money

• The value of a country's currency compared to others

Which would be an example of a "subsidy"?

• The US government gives money to Ford to fund research

• The US government bans all Cuban cigars.

• The US government requires Chinese cars to have seat belts.

• The US government places a 10% tax on all Japanese imports.

The value that one currency has compared to another currency is called exchange rate

• True
• False