IBM_tutorial_6

What is international trade?

• Exchange of goods within a country

• Exchange of goods across borders

• Exchange of services within a region

• Exchange of goods between neighbors

Which of the following is NOT a benefit of international trade?

• Economic efficiency

• Decreased access to markets

• Specialization

• Growth in customer base

What does free trade imply?

• No barriers to trade

• High tariffs

• Limited import quotas

• Government subsidies for all industries

A common impact of free trade on domestic industries is:

• Increased government control

• Higher costs of goods

• Risk of unemployment

• Decreased foreign competition

Which organization aims to facilitate international trade by regulating trade agreements?

• NATO

• WTO

• UNICEF

• EU

What is a 'tariff'?

• Government loan to foreign companies

• Tax on imported goods

• Limit on exported goods

• Subsidy for local businesses

What are 'trade barriers'?

• Policies that promote free trade

• Restrictions that limit imports

• Rules to increase competition

• Investments in foreign companies

Which of the following can lead to a 'trade war'?

• Increased export quotas

• Retaliatory tariffs between countries

• Removal of trade barriers

• Increased product innovation

The main goal of the World Trade Organization (WTO) is to:

• Limit trade among nations

• Promote international trade and resolve disputes

• Establish currency exchange rates

• Control global labor markets

Which of the following is a role of the International Monetary Fund (IMF)?

• Monitoring labor laws

• Promoting global monetary cooperation

• Imposing tariffs

• Increasing trade barriers