Global Trade and Economic Interactions Quiz

What is global trade?

• The exchange of goods and services within a single country

• The exchange of goods and services between individuals

• The exchange of goods and services between countries

• The act of buying goods online

What does economic interdependence mean?

• Countries rely solely on their own production and resources

• Countries depend on each other for resources, goods, and services

• A country's economy is dependent on its political system

• Economies operate independently of each other

How do currency exchange rates affect international trade?

• They have no effect on international trade

• They determine how much of one currency can be exchanged for another

• They only affect domestic trade

• They stabilize global economies automatically

Which of the following is an example of an international trade barrier?

• Free trade agreements

• Tariffs on imported goods

• Globalization

• Economic interdependence

How can international trade impact an economy?

• By increasing dependency on domestic goods only

• By limiting cultural exchange

• By boosting economic growth through access to foreign markets

• By making a country self-sufficient

What is a strategy for economic development?

• Decreasing trade with other countries

• Investing in education and infrastructure

• Increasing tariffs on all imported goods

• Avoiding the use of technology in production

Why is economic interdependence considered beneficial in global trade?

• It encourages countries to be self-sufficient

• It reduces the need for diplomatic relations

• It promotes specialization and efficiency in production

• It eliminates the need for currency exchange

What role do currency exchange rates play in economic development?

• They discourage international trade

• They have no impact on economic development

• They facilitate trade and investment between countries

• They only benefit wealthy countries

How do international trade barriers like tariffs and quotas affect global trade?

• They encourage free trade by removing restrictions

• They have no significant impact on trade

• They can protect domestic industries but may lead to trade disputes

• They increase the global exchange of goods and services

What is a key factor in determining a country's strategy for economic development?

• The country's climate

• The age of its population

• Its level of access to natural resources

• Its preference for isolationism