International Business and Trade

What are international trade policies and agreements?

• Rules and regulations for international trade

• Guidelines for domestic industries

• Agreements for local market expansion

• Regulations for foreign investments

Why do governments establish international trade policies and agreements?

• To restrict domestic industries

• To protect domestic industries and promote exports

• To discourage exports

• To promote unfair competition

What is the primary purpose of these policies?

• To hinder international trade

• To limit competition in the international marketplace

• To ensure fair competition and promote exports

• To promote imports at the expense of exports

What is Import Trade?

• The purchase or buying of goods or services from a foreign country for consumption in the importing country.

• The sale of goods to a foreign country.

• The export of goods from one country to another.

• The re-export of goods from a third country.

What is Export Trade?

• The purchase or buying of goods or services from a foreign country for consumption in the importing country.

• The sale of goods to a foreign country.

• The export of goods from one country to another.

• The re-export of goods from a third country.

In Entrepot Trade, what is the purpose of importing goods?

• For consumption within the importing country.

• For sale in the importing country.

• For re-exporting to a third country.

• For storage in the importing country.

What principle guides a country's decision to specialize in certain goods for export?

• Law of Absolute Advantage

• Law of Supply and Demand

• Law of Diminishing Marginal Returns

• Law of Comparative Cost

Which of the following is NOT a goal of international trade policies procedures and agreements?

• Protecting domestic industries

• Promoting exports

• Regulating the exchange of goods and services between countries compared to inland trade?

• Encouraging unfair competition

What is one of the characteristics that distinguishes foreign trade from inland trade?

• The separation of buyers and producers from different countries

• The need for foreign currency

• The involvement of middlemen

• The absence of restrictions

What kind of currency is typically used in foreign trade transactions?

• Local currency of the exporting country

• Foreign currency

• Cryptocurrency

• Digital currency