3. Business in the Global Economy Prep

What is comparative advantage largely responsible for?

• International trade

• Negotiated

• Businesses

• Determines

Economic benefits of comparative advantage?

• Trade promotion and international cooperation activities of Trade bodies

• Between countries should open trade and exchange of goods for better development together.

• Providing excellent chances for the textile industry to grow aggressively in the international market

• Free trade agreements are constantly being negotiated

If I am better at all types of production, I have the ______ in all forms of production.

• Comparative advantage
• Specialization
• Absolute advantage
• developed nation

A trade agreement between 27 countries of with the same currency and open trade between those nations.

• NAFTA
• EU
• WTO
• ABC

A trade agreement between Canada, Mexico, and the US

• NAFTA
• EU
• WTO
• ABC

All of the following are terms used to describe limitations on trade except?

• Trade Barriers
• Sanctions
• Trade restrictions
• EU

This trade barrier limits the number of products that can be brought into a country.

• Tariff
• Quota
• Embargo
• Subsidy

This is a tax on imports that is used to increase price of foreign products and raise government revenue. 

• tariff
• quota
• subsidy
• embargo

This is the most restrictive of the trade restrictions a nation can use to close off all importation of a product.

• tariff
• quota
• subsidy
• embargo

If nations limit trade in of clothing who will benefit?

• Domestic Consumers of clothing
• Domestic producers of clothing
• Foreign Producers of clothing 
• department stores who sell clothing