Economics - International Trade

What is the annual difference between a country's exports and imports called?

• Net exports

• Trade deficit

• Trade surplus

• Balance of payments

Which country is the world's largest importer?

• United States

• China

• Canada

• Mexico

What is the main purpose of the World Trade Organization (WTO)?

• To increase protectionism

• To protect the environment and workers

• To favor rich countries

• To eradicate protectionism

What is the effect of a depreciating dollar on US imports and exports?

• Both imports and exports fall

• Imports fall and exports rise

• Both imports and exports rise

• Imports rise and exports fall

What is the main reason for the United States running a trade deficit?

• High savings rate

• High demand for foreign goods

• Low demand for foreign goods

• Low savings rate

What is the purpose of the financial account in the balance of payments?

• To record the flow of money and goods

• To record the sale and purchase of goods and services

• To record investment income

• To record international transactions

What is the main criticism of the North American Free Trade Agreement (NAFTA)?

• It increased protectionism

• It favored rich countries

• It had a net negative impact on all three countries

• It decreased the number of manufacturing jobs

What is the effect of an appreciating dollar on US imports and exports?

• Both imports and exports rise

• Both imports and exports fall

• Imports rise and exports fall

• Imports fall and exports rise

What is the main purpose of the World Trade Organization (WTO)?

• To favor rich countries

• To eradicate protectionism

• To protect the environment and workers

• To increase protectionism

What is the effect of a depreciating dollar on US imports and exports?

• Imports rise and exports fall

• Imports fall and exports rise

• Both imports and exports fall

• Both imports and exports rise