International Trade Quiz

What is one reason for the significant growth in trade between nations in recent years?

• Decrease in the number of trading nations

• Increased domestic production in all countries

• Increasing number of countries becoming more open

• Decrease in international tourism

What tends to be the nature of the UK's trading balance?

• Surplus on both visible and invisible balance

• Deficit on visible balance and surplus on invisible balance

• Surplus on visible balance and deficit on invisible balance

• Deficit on both visible and invisible balance

What is the Maldives' largest industry?

• Oil production

• Tourism

• Fishing

• Agriculture

What percentage of the Maldives' foreign exchange receipts comes from tourism?

• 28%

• 60%

• Over 90%

• Less than 50%

What is Saudi Arabia's main trading partners mentioned in the text?

• China and Russia

• America and Japan

• UK and India

• Germany and Brazil

Why does international trade benefit the world?

• It restricts countries to their own resources

• It decreases living standards and income

• It raises living standards and results in higher levels of output and income

• It ensures all countries have the same climate

Why are many countries unable to produce certain goods domestically?

• Because they have advanced technology

• Because they have surplus trading balances

• Because they lack the natural resources for such production

• Because they prefer to import more

Why can obtaining goods that can be bought more cheaply from overseas be beneficial for some countries?

• It allows countries to focus on producing goods that are not in demand.

• It enables countries to buy goods at a higher price to support other economies.

• It helps countries to purchase goods more efficiently if they have cheaper resources or expertise.

• It forces countries to depend solely on international trade.

What is one of the reasons that international trade improves consumer choice?

• It limits the variety of products available in the market.

• It ensures that all products are identical regardless of their origin.

• It provides consumers with a wider choice of goods and services because countries buy and sell the same products.

• It restricts companies to sell their products only in the domestic market.

Why might a country benefit from selling unwanted commodities?

• It can dispose of excess resources that are not useful domestically.

• It can increase the price of these commodities by creating artificial scarcity.

• It can avoid international trade and focus on self-sufficiency.

• It can monopolize the market for those commodities.