Global Business: Trade Terms

Match the following

• Things sent from America to other countries

• Imports

• Things brought into America from another country

• Exports

• A specific number limit on how much of a certain good can be imported

• Tariffs

• An extra tax which is placed on imports

• Quotas

• Trade without limits

• Free Trade

The US limits imports of Japanese cars to 100,000 cars per year. This is an example of a ​ (a)   .

The United States puts a 20% tax on the import of all Japanese cars. This is an example of a ​ (b)   .

• quota
• tariff
• free trade
• import
• export

Which of the following are true about quotas and tariffs (2 correct)

• They make foreign goods more expensive

• They help American companies

• They help American consumers

• They make foreign goods cheaper

Multinational Corporations prefer to produce goods in countries with a low standard of living and low wages

• True

• False

Which of the following is NOT a 'free trade' promoting organization?

• World Trade Organization

• North American Free Trade Organization (NAFTA)

• The International Monetary Fund (IMF) and the World Bank

• The Organization of the Petroleum Exporting Countries (OPEC)

The United States places a 20% tariff on all imported cars. Which of the following best describes the effect of this policy?

• It will help American workers and producers, but raise prices for American consumers

• It will harm American workers and producers, and raise prices for American consumers

• It will harm American workers and producers, and lower prices for American consumers

• None of these answers are correct

The United States signs a free trade agreement removing all trade restrictions. How will this likely affect the US economy?

• It will help American workers and producers, but raise prices for American consumers

• It will harm American workers and producers, and raise prices for American consumers

• It will harm American workers and producers, but lower prices for American consumers

• None of these answers are correct

when exports exceed imports

• customs

• Trade surplus

• Trade Deficit

• Free Trade

 a fall in the value of a currency in terms of its exchange rate versus other currencies.

• ad valorem

• Currency Depreciation

• c.&f.

• declrae

a country with a high GDP, high standard of living, and high

wages

• Developed Country

• Developing Country

• Emerging Country

• Economic Country