Econ Unit 5 Quiz: International Trade and Globalization

What does comparative advantage refer to in international trade?

• Ability of a country to produce all goods.

• Country's capability to produce at a higher cost.

• Capacity to produce goods at the lowest opportunity cost.

• A country's ability to restrict imports.

Which of the following is a trade barrier that imposes taxes or duties on imported goods?

• Quotas

• Free trade

• Protectionism

• Tariffs

How do exchange rates impact international trade?

• They have no influence on trade costs.

• They affect the cost of imports and exports.

• They solely regulate trade agreements.

• They restrict trade barriers.

What is the main benefit of international trade in terms of consumer choice?

• Reduced access to goods and services.

• Limited variety of products.

• Increased consumer choices and access to a variety of goods.

• Higher prices for goods.

Which term refers to a company operating in multiple countries?

• Globalization

• Multinational Corporation (MNC)

• Comparative Advantage

• Protectionism

Match the term with its corresponding definition:

• Outsourcing

• The ability of a country to produce goods or services at a lower opportunity cost than another country.

• Comparative Advantage

• Goods and services sent out of a country to another.

• Exports

• The difference between a country's exports and imports

• Trade Balance

• A company that operates in multiple countries

• Multinational Corporation (MNC)

• When a company contracts out certain tasks or operations to an external provider, often in a different country

International trade involves the exchange of ______, ______, and ______ across national borders.

Evaluate responses using AI:

OFF

​ (a)   determine the value of one currency in terms of another, influencing international trade.

• Globalization
• Comparative advantage
• Tariffs
• Exchange rates

Globalization refers to the increasing interconnectedness of ​ (a)   , ​ (b)   , and ​ (c)   worldwide.

• goods
• services
• capital
• exports
• tarifs
• economies

Taxes or duties imposed on imported goods, affecting trade costs

• Tariffs

• 
  Free Trade

• Exports

• 
  Imports