International Trade

Tax on imported goods is known as

• Quota

• Tariff

• Embargo

• Licensing

Physical control to ban the imports of certain goods because of economics, social and politics is known as

• Tariff

• Quota

• Embargo

• License

The followings are reasons for international trade EXCEPT

• Encourage opportunity in local direct investment

• Increase productivity

• Make the market more competitive

• Increased efficiency

Which of the following is not a non-tariff barrier?

• A. Subsidies

• B. Tariff

• C. Import Quota

• D. Permit and Licensing

What is product life cycle theory for international trade?

• A. trade between countries takes place because each country has different levels of resource intensity

• B. international trade takes place because countries are at different stages of production levels

• C. trade between countries is determined by the availability of related and supported industries

• D. trade between countries is determined by similar comparative advantage to exchange similar products

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

• A.

  Benefits local farmers and small businesses

• B. Opens up markets to a greater diversity of products

• C.

  Creates more competition for businesses

• D.

  Decreases labor

  costs for big business

Which of the following best describes the term balance of trade?

• A.

  A trade agreement between two countries

• B.

  Trade among countries is equally beneficial for

  all of the countries involved

• C.

  Countries are only allowed to import the same value of goods that they export

• D.

  The value of a country’s exports equals the country’s imports

Which two trades are intermediate between the producers and final comsumers?

• Import and export trade

• Wholesale and retail trade

The definition of TRADE is __________________.

• Importing goods
• to buy or sell goods or services
• Exporting goods

Why does the United States need to import products?

• The US does not import products
• Some are easier and cheaper to make in other countries
• The US makes all of its own products