International Quiz 2023

What is an exchange rate?

• The rate at which goods are exchanged between two countries

• The price of one nation's currency in terms of another's

• How many US dollars you can exchange for RMB at Travelex

• The price of goods in terms of a foreign currency

Why do changing exchange rates help one country and hurt the other?

• One side loses purchasing power and the other gains it

• Takes money away from one side and gives it to the other

• Causes war between the two countries

• One country's government introduces tariffs to protect local industries

If the US $ were to appreciate in relation to the Euro, what effect would this have?

• European consumers would have more purchasing power in US

• US consumers can buy more European goods and services for fewer $$

• US consumers can buy more English goods and services for fewer $$

• European tourists to the US will spend less$$

If the Mexican Peso depreciates in relation to the Chinese Yuan, how is Mexico affected?

• Mexico has less purchasing power in Chinese currency

• Mexico benefits from increased purchasing power

• Mexico would have more Chinese investors

• They would be invaded by China

When the US$ depreciates compared to another currency

• Exporters from the US can make more money because the goods were cheaper

• increase the foreign price of US exports.

• reduce the price of US imports.

• reduce US inflation

A new tax is added to pharmaceutical imports from the United Kingdom.

• tariff

• quota

• embargo

Germany places a block on all imports from Sri Lanka

• tariff

• quota

• embargo

France imposes a limit on Avocado imports from Mexico.

• tariff

• quota

• embargo

A tariff is a ______

• tax placed on imported goods
• a limit placed on imported goods
• a stop of all trade 

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported goods and encourage people to buy local
• to raise the price of imported goods to help other countries make more money
• to be mean!