Marketing Test 2

What is the main function of the World Trade Organization (WTO)?

• Regulate international trade

• Provide loans to developing countries

• Control global oil prices

• Manage international tourism

What agreement is abbreviated as NAFTA?

• North American Free Trade Agreement

• North Atlantic Free Trade Agreement

• National Agricultural Free Trade Agreement

• Nordic Alliance Free Trade Agreement

Which organization is known as the EU?

• European Union

• Union of the East

• Economic Union

• Environmental Union

What is a "tariff"?

• A tax on imports or exports

• A subsidy for domestic producers

• A quota on foreign products

• A ban on certain products

What is the main objective of the North American Free Trade Agreement (NAFTA)?

• Eliminate trade barriers between member countries

• Increase tariffs on imported goods

• Restrict trade to agricultural products only

• Promote trade with non-member countries

Who controls the exchange of goods and services between businesses?

• Local businesses

• International businesses

• Governments of the world

• Individual consumers

Which country is mentioned as having an absolute advantage in silk production?

• India

• Japan

• China

• Thailand

Why might the large trade deficit of the United States seem surprising?

• The United States is the largest importer in the world

• The United States has no exports

• The United States is the largest exporter in the world

• The United States imports more than it exports

What is a negative consequence of a trade deficit mentioned in the text?

• Increase in national savings

• Increase in foreign aid

• Increase in unemployment

• Increase in domestic investment

Why might people lose their jobs in a country with a trade deficit?

• Due to an increase in domestic production

• Due to foreign competitors taking market share

• Due to an increase in public spending

• Due to a reduction in foreign investments