International Trade Economics Assessment

What is a primary advantage of international trade?

• Reduced competition in domestic markets

• Access to a wider variety of goods and services

• Elimination of all trade barriers

• Increased unemployment rates

Which of the following is a significant trade barrier?

• Export subsidies

• Free trade agreements

• Tariffs and quotas

• Trade surpluses

The concept of "comparative advantage" in international trade means:

• Having the most advanced technology

• Being able to produce everything independently

• Having the lowest absolute production costs

• Producing goods at a lower opportunity cost

What is a potential disadvantage of international trade for developing nations?

• Dependency on foreign goods

• Increased technological access

• Greater market opportunities

• Cultural exchange benefits

Which economic concept describes the difference between a country's exports and imports?

• Trade deficit

• Gross domestic product

• Exchange rate

• Market equilibrium

What is "dumping" in international trade?

• Environmentally harmful waste disposal

• Selling products below cost in foreign markets

• Overproducing goods

• Rejecting imported goods

A key benefit of joining the World Trade Organization (WTO) is:

• Complete economic independence

• Protection from all foreign competition

• Access to dispute resolution mechanisms

• Guaranteed trade surpluses

Which factor can lead to trade tensions between nations?

• Intellectual property rights violations

• Increased cultural understanding

• Economic cooperation

• Market liberalization

The term "protectionism" refers to:

• Environmental protection laws

• Consumer safety regulations

• Economic security measures

• Government restrictions on international trade

What is a common effect of currency devaluation?

• Decreased export competitiveness

• Higher domestic inflation

• Increased export opportunities

• Reduced foreign investment