YS > Int Mkt > Ch3: Global Trade and Integration

Which of the following occurs when goods are transferred or shipped to a foreign country?

• exporting

• importing

• absolute advantage

• comparative advantage

• market liberalization

The theory of absolute advantage was proposed by ______.

• Adam Bracker

• Adam Wesley

• Adam Wiley

• Adam Smith

• Adam Riley

Trade leads to higher levels of innovation through ______.

• reduced costs

• increased efficiencies

• market development

• specialization

• division of labor

All of the following are presented in the lecture as benefits of free trade EXCEPT ______.

• Free trade restrains the power of the state and empowers individuals.

• Free trade brings people together across distance and cultures leading to peace.

• Free trade makes everyone wealthier.

• Free trade creates additional poverty.

• Free trade encourages basic human rights.

Specially designated areas within a country that have separate laws designed to encourage trade are ______.

• zones of indifference

• zones of marketability

• free trade areas

• restricted trade zones

• open trade zones

Which remove barriers to the movement of goods and services and members consent to a uniform tariff policy toward non-member countries?

• free trade areas

• custom union

• common market

• economic union

• political union

Which involves the use of a third party when entering a foreign country?

• importing

• downsizing

• offshoring

• dumping

• market differentiation

Which trade agreement includes the United States, Mexico, and Canada?

• North and South America Trade Alliance

• American Union

• CANMEXUS

• North American Free Trade Agreement

• Alliance of North American Enterprise

Protectionism is ______.

• a form of free trade in which a country maintains it sovereignty

• a method of developing advantageous trade relationships with other countries

• the use of currency exchange to maintain trading advantages

• protecting domestic businesses from exports by foreign firms through governmental policy

• protecting free trade by creating treaties

The desire to protect domestic businesses from the exports of foreign firms through governmental policy is ______.

• protectionism

• dumping

• market stabilization

• market liberalization

• border fixing