International Trade Quiz

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 these

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

• many wars

• an increase in world poverty

• globalization

• All of these

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 these

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 these

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

• opportunity costs

• government structure

• military strength

• All of these

The negative impact of international trade can be

• the displacement of workers

• environmental damage

• trade imbalances

• All of these

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 these

In order to promote trade, countries often

• restrict trade

• create trade barriers

• form trade agreements

• all of these