International Trade

1. Which of the following best defines international trade?

• B) Trade between two companies in the same country

• C) Trade of goods and services across international borders

• • D) Trade restricted to one continent

1. What is the primary benefit of international trade?

• Limited access to resources

• Access to a wider variety of goods and services

• Increased tariffs and trade barrier

• Decreased competition

1. Which of the following is a disadvantage of international trade?

• Trade deficits

• Access to technology

• Cultural exchange

• Economic growth

4. What does the balance of trade measure?

• A) The difference between a country's imports and exports

• B) The total value of goods produced in a country

• C) The total number of trade agreements signed by a country

• • D) The difference between a country's total debt and assets

4. Which organization is primarily responsible for regulating international trade?

• A) International Monetary Fund (IMF)

• B) World Trade Organization (WTO)

• C) United Nations (UN)

• D) World Bank

4. What is a tariff?

• A) A trade agreement between two countries

• • B) A tax imposed on imported goods

• • C) A quota on the number of goods exported

• D) A subsidy given to domestic producers

7. What is foreign direct investment (FDI)?

• A) Purchasing foreign goods for resale

• B) Investing in a foreign country by setting up operations or acquiring assets

• C) Licensing a foreign company to use intellectual property

• D) Exporting products to a foreign market

7. Which of the following is an example of licensing in international trade?

• Franchising a business model to a foreign company

• Establishing a joint venture with a foreign partner

• Allowing a foreign company to produce and sell products using your brand

7. What is franchising in the context of international trade?

• Importing raw materials for domestic production

• Investing in a foreign country's stock market

• Directly exporting products to another country

• Allowing a foreign company to use your business model and brand for a fee

7. What is an import?

• A good or service sold to another country

• A service provided to a foreign customer

• A good or service brought into a country from abroad