Exploring Global Politics and Trade

What is a global trade agreement?

• A treaty between countries that sets trade rules and reduces barriers.

• A law that regulates domestic businesses only.

• An agreement that focuses solely on environmental issues.

• A document that outlines military alliances between countries.

Which Indian leader was at the forefront of global diplomacy during the 2024 G20 Summit?

• Narendra Modi

• S. Jaishankar

• Amit Shah

• Nirmala Sitharaman

How do trade agreements affect developing countries?

• Trade agreements can both benefit and challenge developing countries by providing market access while exposing them to competition.

• Developing countries are always better off without trade agreements.

• Trade agreements eliminate all forms of competition for developing countries.

• Trade agreements only harm developing countries without any benefits.

What is the purpose of the World Trade Organization (WTO)?

• To enforce trade tariffs on all countries.

• To establish a global currency system.

• To provide loans to developing nations.

• To regulate international trade and promote free trade among nations.

Explain the concept of comparative advantage in trade.

• Comparative advantage means producing everything in larger quantities.

• It refers to the ability to trade without any costs involved.

• Comparative advantage is about having the best technology for all goods.

• Comparative advantage allows for increased overall efficiency and trade benefits by specializing in goods with lower opportunity costs.

What are tariffs and how do they impact global trade?

• Tariffs are subsidies for exports that lower prices for consumers.

• Tariffs are fees paid by consumers for online purchases.

• Tariffs are taxes on imports that impact global trade by increasing costs for consumers and protecting domestic industries.

• Tariffs are regulations that promote free trade between countries.

Who is the current President of the United States (as of December 2024)?

• Joe Biden

• Donald Trump

• Kamala Harris

• Bernie Sanders

What role do international financial institutions play in development?

• International financial institutions provide funding, technical assistance, and policy advice to support economic development and reduce poverty.

• They focus solely on military funding.

• They only provide loans to wealthy countries.

• They are responsible for setting global tax rates.

How does globalization influence local economies?

• Local economies only suffer from globalization.

• Globalization eliminates all local competition.

• Globalization can boost local economies through trade, investment, and technology, but may also increase competition for local businesses.

• Globalization has no effect on local economies.

What are the potential downsides of free trade?

• Boost to local businesses

• Job losses in certain industries, harm to local businesses, environmental degradation, and increased income inequality.

• Improvement in environmental standards

• Increased job security in all sectors