Global Trade and Economics Quiz

What event in 1929 significantly impacted world trade?

• World War I

• Stock market crash

• Formation of GATT

• Establishment of WTO

Which agreement was formed to reduce tariffs after World War II?

• NAFTA

• GATT

• IMF

• APEC

By how much did world trade increase since 1950?

• 10-fold

• 15-fold

• 22-fold

• 30-fold

What is protectionism?

• Free trade between countries

• Barriers to protect domestic industries

• International cooperation

• Economic sanctions

Which organization succeeded GATT?

• IMF

• WTO

• World Bank

• UN

What is the primary aim of the World Trade Organization?

• Promote socialism

• Legislate trade disputes

• Monitor world peace

• Manage military conflicts

What does the balance of payments record?

• Government spending

• A nation's international transactions

• Domestic sales only

• Employment rates

Which account includes exports and imports?

• Reserves account

• Capital account

• Current account

• Savings account

What type of barrier limits the amount of goods that can be imported?

• Tariff

• Quota

• Subsidy

• Tax

What does a tariff do?

• Subsidizes domestic goods

• Reduces import prices

• Increases prices of imported goods

• Eliminates trade barriers