UNIT 1. Introduction to international trade

What is the difference between EXPORTS and IMPORTS?

• A) Exports and imports are synonym terms used for domestic trade operations.

• B) Exports are goods/services sold to a foreign country and imports goods/services acquired from a foreign country.

• C) Imports are goods/services sold, while exports are goods/services brougth in from a foreign country.

• D) Imports are only goods, while exports are only services.

Which are the main differences between DOMESTIC and INTERNATIONAL trade?

• A) Trade barriers, market reach and growth, cost.

• B) Trade barriers, intermediaries, language.

• C) Culture, logistic resources, profit margins.

• D) Means of transport, protectionism, geography.

2. What are BARRIERS in trade terms?

• A) Taxes imposed on domestic goods and services.

• B) Government subsidies industries.

• C) Agreements between countries to promote free trade.

• D) Government imposed restrictions on the flow of goods and services between countries.

How are all TRADE BARRIERS similar?

• A) They all are political.

• B) They all are natural, physical features of the Earth.

• C) They all aim at blocking trade in some way.

• D) They contribute to make trade smoother.

Which definition suits best for TARIFF?

• A) A limit on imported items.

• B) A tax on imported items.

• C) A tax on exported items

• D) None of the above.

Which definition suits best for QUOTA?

• A) A limit on imported items.

• B) A tax on imported items.

• C) A tax on import quantitites above the legal limit.

• D) Legal incentive for members of WTO to increase their exports of a particular product or service.

What do TARIFFS and QUOTAS have in common?

• A) Tariffs and quotas both tax imported goods.

• B) Tariffs and quotas are free trade measures against imports.

• C) Tariffs and quotas both limit imported goods.

• D) Tariffs and quotas are both protectionist measures against imports.

The Harmonized System Code is a...

• A) A national system of six-digit code to classify traded products worldwide based on the country of origin.

• B) International system of tariffs for imported products coming from a foreign country.

• C) An international standardized system of six-digit code to classify traded products worldwide based on the nature, type and purpose of the products.

• D) A European system code intended to determine the tariffs and quotas to be applied on imports from third countries.

What is DIRECT DISTRIBUTION in international trade?

• A) Selling products through wholesalers.

• B) Selling products directly to end customers.

• C) Using intermediaries to reach customers.

• D) Partnering with local retailers.

A manufacturer decides to use agents to get their product in the market. The producer is using...

• A) Direct distribution.

• B) No distribution.

• C) Intermediaries.

• D) Non of above is correct.