Global Trade Quiz

Why is global trade important to the United States, and how is it measured?

• It is not important and is not measured.

• It is important for cultural exchange and measured by population.

• It is important for economic growth and measured by trade balance.

• It is important for tourism and measured by visitor numbers.

Why do nations trade?

• To increase isolation.

• To access resources and markets.

• To reduce employment.

• To decrease economic growth.

What are the barriers to international trade?

• Language differences.

• Trade agreements.

• Tariffs and quotas.

• Cultural similarities.

How do governments and institutions foster world trade?

• By increasing tariffs.

• By creating trade barriers.

• By establishing trade agreements.

• By promoting isolationism.

What are international economic communities?

• Groups of isolated countries.

• Organizations that promote global trade.

• Local business clubs.

• National sports teams.

How do companies enter the global marketplace?

• By ignoring international markets.

• By exporting and forming partnerships.

• By focusing only on local markets.

• By reducing product quality.

What threats and opportunities exist in the global marketplace?

• Only threats exist.

• Only opportunities exist.

• Both threats and opportunities exist.

• Neither threats nor opportunities exist.

What are the advantages of multinational corporations?

• Limited market access.

• Increased costs.

• Access to global markets and resources.

• Decreased brand recognition.

What are the trends in the global marketplace?

• Decreasing globalization.

• Increasing isolationism.

• Growing digital trade and sustainability.

• Declining international cooperation.

What challenge do organizations face when entering new global markets according to the text?

• Identifying local competitors

• Reviewing potential new suppliers

• Reducing product prices

• Increasing advertising budgets