Unit 5 International Trade/Ga Ports/Exchange

What is a trade barrier?

• A restriction on the import or export of goods

• A form of economic aid

• A type of currency exchange

• A financial incentive for exporting goods

What is comparative advantage?

• The ability to produce more of a good with the same resources

• The ability to produce a good at a lower opportunity cost

• The ability to produce a good using fewer resources

• The ability to produce multiple goods efficiently

What is the relationship between comparative advantage and international trade?

• Countries with a comparative advantage import less

• Countries with a comparative advantage export more

• Comparative advantage discourages international trade

• Comparative advantage is unrelated to trade

Why might consumer experience higher prices due to trade barriers?

• Increased global demand

• Reduced supply of imported goods

• Government subsidies on imports

• Increased domestic competition

How do tariffs affect consumers in the short term?

• Decrease prices of imported goods

• Increase prices of imported goods

• Increase variety of goods available

• Decrease domestic employment

What is one potential benefit of trade barriers for domestic producers?

• Increased competition from foreign markets

• Reduced production costs

• Protection from foreign competition

• Decreased market share

How can a nation benefit from specializing in goods with a comparative advantage?

• By increasing import tariffs

• By reducing production efficiency

• By trading for goods it produces less efficiently

• By producing all goods domestically

What is the effect of trade barriers on global trade relationships?

• Strengthen alliances

• Increase international cooperation

• Strain relationships and lead to trade disputes

• Reduce political tensions

What role do quotas play in international trade?

• They encourage unlimited imports

• They set a limit on the amount of a good that can be imported

• They reduce domestic production

• They increase foreign competition

How can international trade lead to economic growth?

• By reducing market competition

• By increasing access to resources and technology

• By restricting entry to foreign markets

• By decreasing consumer choices