1. __________ refers to the purchase, sale, or exchange of goods and services across national borders.

• A. Free trade

  
  

• B. International trade

  
  

• C. Protectionism

  
  

• D. Trade barrier

  
  

1. _________ refers to the restriction on the amount of a good that can enter or leave a country during a certain period of time.

• A. Tariff

  
  

• B. Quota

  
  

• C. Trade barrier

  
  

• D. Dumping

  
  

1. A tariff is a _________ (or tax) levied upon goods transported from one Customs area to another, for either protective or revenue purposes.

• A. Quota
  

• B. Subsidy
  

• C. Duty
  

• D. Embargo

  
  

1. What is the absolute advantage of a nation?

• A. The ability to produce a good more efficiently than any other nation.

  
  

• B. The ability to produce a good less efficiently than other nations but at a lower cost.

  
  

• C. A strategy to protect domestic industries from foreign competition.

  
  

• D. The restriction of trade between two countries.

  
  

1. An infant industry is a _________, which in its early stages experiences relative difficulty or is absolutely incapable of competing with established competitors abroad.

• A. Strategic sector
  

• B. Established business
  

• C. New industry
  

• D. Globalized company

  
  

1. A strategic industry is an industry which is _________ for the promotion or stabilization of the growth of the locality in which that industry is situated.

• A. Unnecessary
  

• B. Essential
  

• C. Unstable
  

• D. Global

  
  

1. Protectionism is the economic policy of restraining trade between nations, through methods such as _________ on imported goods.

• A. Tariffs
  

• B. Subsidies
  

• C. Export quotas
  

• D. Free market policies

  
  

1. A trade barrier is a government law, regulation, policy, or practice that either protects domestic products from foreign competition or artificially _________ exports of particular domestic products.

• A. Stimulates
  

• B. Restricts
  

• C. Discourages
  

• D. Eliminates

  
  

1. What is the main purpose of imposing tariffs?

• A. To make imports cheaper than domestic products

  
  

• B. To raise government revenue and protect local industries

  
  

• C. To encourage dumping of foreign goods

  
  

• D. To promote free trade globally

  
  

1. Which of the following is an example of a Trade Barrier?

• A. Free market policies

  
  

• B. Subsidizing local industries

  
  

• C. Import tariffs and quotas

  
  

• D. Encouraging foreign investment