Unit 6:Globalization

The key reason why international trade has increased so rapidly is due to

• the rise of dictators.

• a change in consumer tastes.

• technological advancements and trade agreements.

• all of the above

The growing increase in international trade along with the development of technology has fostered

• many wars.

• an increase in world poverty.

• globalization.

• All of the above.

In most cases, what determines the goods and services a country decides to export?

• The World Trade Organization

• When a country has comparative advantage or an absolute advantage.

• Globalization.

• All of the above.

What is a benefit of international trade?

• It allows countries to more efficiently use their resources and leads to a higher standard of living.

• Companies gain access to more markets leading to more profits, which leads to reinvestment back home.

• Consumers gain access to a greater variety goods.

• All of the above.

Comparative advantage: Because each nation has limited natural resources, a country, must weigh it best options or __________when using natural resources to produce a particular good or service for export.

• opportunity costs.

• government structure.

• military strength

• All of the above.

The negative impact of international trade can be

• the displacement of workers.

• environmental damage.

• trade imbalances.

• All of the above.

With international trade, it is best for a country to have a

• trade deficit.

• trade surplus.

• a displacement of workers.

• None of the above.

The opposite of trade protectionism would be

• free trade.

• trade deficit.

• surplus trade.

• All of the above.

A trade barrier utilized by countries may be

• tariffs (taxes) on certain imports.

• placing quotas on certain imports.

• The outright restriction of certain imports.

• All of the above.

In order to promote trade, countries often

• restrict trade.

• create trade barriers.

• form trade agreements.

• All of the above.