International Trade Quiz

What is the main purpose of mercantilism?

• Maximize exports and minimize imports

• Encourage international trade

• Increase the country's GDP

• Promote self-sufficiency

What is the concept of comparative advantage in international trade?

• Countries should focus on producing everything they need domestically

• Countries should only export goods they can produce efficiently

• Specialization leads to innovation and new product creation

• Countries should prioritize gold accumulation

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

• To eliminate all international trade barriers

• To regulate intellectual property rights in trade

• To resolve trade disputes and enforce trade rules

• To maximize exports for all member countries

What was the goal of the General Agreement on Tariffs and Trade (GATT)?

• To encourage self-sufficiency in member countries

• To restrict international trade to a few countries

• To lower trade barriers and promote free trade

• To increase tariffs on imports

What is the purpose of NAFTA?

• To limit trade between North American countries

• To increase tariffs on imports from Mexico and Canada

• To facilitate more trade among the United States, Mexico, and Canada

• To promote self-sufficiency in North America

What is the measure of a country's ability to utilize its resources efficiently?

• Total Imports

• Gross National Product (GNP)

• Gross Domestic Product (GDP)

• Total Exports

What is the impact of international trade on the global economy?

• Leads to global instability

• Increases access to cheaper and better goods and services

• Reduces job opportunities worldwide

• Creates more barriers to trade

What is the challenge for policymakers in international trade?

• To increase tariffs on all imports

• To eliminate all trade agreements

• To assist those disadvantaged by trade with support and new job training

• To prioritize gold accumulation

What is the role of bilateral and regional trade agreements?

• To address specific trade needs and strategies

• To promote self-sufficiency in member countries

• To restrict trade between countries

• To eliminate all international trade barriers

What has been the trend in world trade volume from 1990 to 2015?

• Doubled

• Decreased by half

• Remained constant

• Increased more than fivefold