Video International Trade Explained Quiz

What is the purpose of the trade network?

• To maximize exports and minimize imports

• To create barriers to international trade

• To increase the country's supply of gold

• To import goods and services from foreign trading partners

What are services in the context of trade?

• Manufactured items or agricultural commodities

• Intangible goods such as advertising and telecommunication

• Goods sourced, assembled, packaged, and sold in different parts of the world

• Products that can be produced efficiently by a country

Why did most European countries prioritize self-sufficiency before the 19th century?

• To maximize exports and minimize imports

• To increase the country's supply of gold

• To discourage bringing in goods from abroad

• To be able to innovate and create new products

What is the concept of comparative advantage?

• The idea that countries should produce as much as possible on their own

• The idea that countries should trade with one another to be more successful

• The idea that countries should focus on making things they are comparatively good at

• The idea that a country's power should be judged by how much gold it can amass

What is Gross Domestic Product (GDP)?

• The sum of all the final goods and services a country produces in a year

• The total value of a country's gold reserves

• The measure of a country's ability to utilize its limited resources

• The metric used to determine a country's power

What determines what a country can produce efficiently and successfully?

• The country's human, physical, technological, and financial resources

• The country's ability to maximize exports and minimize imports

• The country's supply of gold

• The country's ability to innovate and create new products

Which country excels at exporting pineapples and coffee?

• Bangladesh

• South Korea

• Costa Rica

• Germany

What did the General Agreement on Tariffs and Trade (GATT) aim to do?

• Expand the definition of trade to include services

• Address the unique circumstances of developing countries

• Create rules governing intellectual property

• Lower trade barriers like tariffs and create rules for free trade

What does the World Trade Organization (WTO) do?

• All of the above

• Address unfair trade practices

• Hammer out the rules and regulations of international trade

• Eliminate obstacles to international trade

What is the nature of international trade?

• To adjust the economy around something a country can be comparatively good at

• To judge a country's power by how much gold it can amass

• To create barriers to international trade

• To maximize exports and minimize imports