GSGG - Trade and the world economy

Which of the following is a reason why countries trade?

• To become more specialized and increase the amount of goods and services for the country’s citizens
• To limit the amount of goods and services available for the country’s citizens
• To decrease economic opportunities for their citizens
• To create trade disputes

What is the trade complementarity index?

• A trade index that looks at the interaction between two countries that provide goods and services or resources to meet the needs wants and demands of another country
• A tariff that is used to motivate companies to move back to domestic production
• An agreement that seeks to bring free trade between Mexico, Canada and the United States
• A decision of what to produce for whom to produce, and where to produce, all decided by the free market

What is comparative advantage?

• Every country’s business and labour are better at certain tasks compared to other people
• Every country’s business and labour are worse at certain tasks compared to other people
• Every country produces the same goods and services as every other country
• Every country has the same amount of natural resources and skills

What is a trade deficit?

• When a country purchases more goods from another country than it purchases from them
• When a country purchases more goods from another country than that country purchases from them
• When a country sells more goods to another country than it sells from them
• When a country sells more goods to another country than it purchases from them

What are tariffs?

• Taxes that are put on imports to make it more expensive to produce those products outside the country's boundaries
• Taxes that are put on exports to make it more expensive to produce those products within the country's boundaries
• Taxes that are put on both imports and exports
• Taxes that are put on products that are being sold within a country

Who pays the tariff on imports?

• Consumers or businesses
• The government
• The importing country
• The exporting country

What is a free market?

• An economy in which decisions of what to produce, for whom to produce, and where to produce are decided by the free market
• An economy in which decisions of what to produce, for whom to produce, and where to produce are decided by the government
• An economy that has no markets
• An economy that only produces what the government wants it to produce

What are neoliberal policies?

• Policies that work to try and make trade between different countries easier, reduce taxes and tariffs, and promote trade between countries
• Policies that work to restrict trade between different countries, increase taxes and tariffs, and discourage trade between countries
• Policies that work to make all economies command economies
• Policies that work to make all economies free market economies

What is NAFTA?

• An agreement that seeks to bring free trade between Mexico, Canada and the United States
• An agreement that seeks to restrict trade between Mexico, Canada and the United States
• An agreement that seeks to create a command economy in Mexico, Canada and the United States
• An agreement that seeks to make all economies free market economies

What is the World Trade Organisation (WTO)?

• An organisation that seeks to promote globalisation and free trade around the world
• An organisation that seeks to restrict trade around the world
• An organisation that seeks to create a command economy around the world
• An organisation that seeks to make all economies free market economies around the world