Distribution and Logistics 2-4

Daniel and Ava are discussing international trade policies. What is Free Trade?

• Trade without taxes

• Trade between two countries with restrictions

• Trade with no barriers or restrictions

• Trade with high tariffs

Which of the following is a benefit of Free Trade?

• Decreased product availability

• Higher prices for consumers

• Access to a wider variety of goods

• Slower economic growth

A Free Trade Agreement (FTA) is designed to:

• Increase tariffs between countries

• Eliminate trade barriers between countries

• Promote trade wars between countries

• Protect domestic industries from competition

Which of the following is an example of a Free Trade Agreement?

• NAFTA

• NATO

• OPEC

• UNICEF

Which of these is a common concern about Free Trade?

• It leads to higher tariffs

• It can cause job losses in certain industries

• It restricts consumer choice

• It limits international competition

Free Trade can lead to:

• Increased tariffs

• Better diplomatic relations between countries

• Fewer job opportunities globally

• Higher consumer costs

Which economic theory supports the idea of Free Trade?

• Communism

• Protectionism

• Capitalism

• Isolationism

Free Trade encourages countries to:

• Produce all goods domestically

• Focus on goods where they have a comparative advantage

• Ban imports

• Increase export taxes

What is outsourcing?

• Buying goods from local markets

• Hiring workers from foreign countries

• Moving parts of a business process to another company or country

• Selling products online

A company may choose outsourcing to:

• Increase production costs

• Hire more local employees

• Reduce operational costs

• Comply with government regulations