Globalization Test Review

____________ are taxes on _________________

• quotas, exports

• quotas, imports

• tariffs, exports

• tariffs, imports

Why do nations trade?

• so they can specialize

• because they believe that the products they receive are worth more than the products they give up

• because they need to acquire certain raw materials

• all of these

which of the following statements best describes trade between two nations?

• it is mutually beneficial

• it is legally required

• it avoids specialization

• it involves low cost for both nations

The practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally is known as

• free trade

• quotas

• tariffs

• outsourcing

NAFTA was signed into law by President _______ in ______

• Clinton, 1990

• Clinton, 1993

• Reagan, 1980

• Reagan, 1993