INTERNATIONAL TRADE

Which of the following is TRUE to define International Trade?

• Transaction made among different companies in a country

• Transaction made among different countries in the world

• Transaction made among different individual in a region

What is the formula for Net Export (NX)?

Absolute advantage is the ability to produce goods or services with fewer resources than other country.

• True

• False

Comparative advantage is the ability of one country to produce goods at a higher opportunity cost than other country.

• True

• False

1. One of the tools of protectionism is by implementing total ban on imports, which is also known as .......

1. One of the tools of protectionism is by limiting the amount of imported commodity, which is called as .......

Which of the following is NOT the tools of protectionism?

• Import license

• Tariff

• Opportunity cost

• Forex control

Which of the following is NOT the arguments for protectionism?

• 1. Protect infant & local industries

• Lower revenue through tariff

• Protect domestic employment

• 1. Prevent dumping