Global Trade Quiz

What is the term used to describe the system of markets and trade that connects countries globally?

• Balance of trade

• Foreign exchange

• Global economy

• Import/export ratio

Which development has significantly contributed to the growth of international trade?

• Increased use of cell phones

• Rising demand for bulk commodities

• Proliferation of container ports serving large ships

• Increase in passenger jets carrying wealthy tourists

Which of the following is considered an export for the U.S.?

• A U.S. business traveler stays at a hotel in Australia.

• A French movie attracts large crowds at U.S. theaters.

• A Dutch family hosts a high school student from the United States.

• A German student pays tuition to attend college in the United States.

What is the most common motive for a country to implement an embargo?

• Economic influence

• Protective tariff

• Quota

• Voluntary restraint

Which policy do the majority of economists support?

• Free trade

• Import quotas

• Trade embargoes

• Trade restrictions

What was a primary goal of establishing the European Union and the World Trade Organization?

• To ensure fair wages

• To regulate investment

• To reduce trade barriers

• To protect national security

What primarily determines the floating rates of foreign exchange?

• The black market

• Government decree

• Supply and demand

• Multinational treaties

How does the United States typically borrow dollars from foreign investors?

• Printing dollars abroad

• Negotiating agreements

• Lending money in return

• Selling government bonds

What is the primary reason the United States borrows from foreign investors?

• To gain influence overseas.

• To help the dollar appreciate.

• To help the terms of NAFTA.

• To finance a trade deficit.

Which concept explains why a country would both import and export a particular type of good?

• Comparative advantage

• Import quotas

• Product differentiation

• Voluntary export restraints