GWC N5 Economics Global Trade

What is one disadvantage of global trade for firms?

• Higher wages
• Less variety in raw materials
• Lower taxes
• Increased competition

How many of the top 25 trading partners of the UK are in the EU?

• 10
• 25
• 20
• 15

What is one disadvantage of trade barriers?

• Improved efficiency in production
• More variety in goods and services
• Higher prices for consumers
• Increased competition

What is one disadvantage of global trade for governments?

• Increased unemployment
• Augmentation of home supplies
• Decreased economic growth
• Higher taxes

How do tariffs work?

• By increasing competition
• By decreasing prices
• By increasing the cost of imported goods
• By promoting free trade

What is one advantage of global trade for individuals?

• Lower taxes
• More job opportunities
• Greater variety and choice in goods and services
• Higher wages

What is one type of trade barrier?

• Tariffs
• Competition
• Free trade
• Specialization

What is free trade?

• Trade with high tariffs
• Trade between neighboring countries
• Trade between countries with similar economies
• Trade without barriers such as tariffs

What are imports?

• Goods and services that are not allowed to enter a country
• Goods and services that are produced domestically
• Goods and services that leave a country for sale in another country
• Goods and services that enter into a country for sale

What is one advantage of trade barriers?

• Improved efficiency in production
• Lower prices for consumers
• Increased competition
• More variety in goods and services