Trade and Globalization Quiz

What is the purpose of protectionist policies?

• To encourage free trade

• To restrict imports from other countries

• To promote exports

• To balance trade

What is the main advantage of free trade?

• Increased tariffs

• Restricted imports

• Increased competition and efficiency

• Decreased exports

What are secondary goods?

• Products from farming

• Items manufactured from primary products

• Services like banking

• Information technology services

What is the primary focus of the tertiary sector?

• Manufacturing goods

• Providing services

• Extracting raw materials

• Developing technology

Why might countries focus on comparative advantages?

• To reduce production and efficiency

• To maximize production and efficiency

• To eliminate international trade

• To increase trade barriers

What is the aim of quotas in trade policy?

• To increase the amount of imported goods

• To make it easier for domestic companies to compete

• To eliminate domestic competition

• To promote international trade

What is the purpose of trade agreements within trade blocs?

• To increase trade barriers

• To facilitate trade among member countries

• To eliminate domestic markets

• To promote tariffs

What is a disadvantage of international trade according to the document?

• It increases employment through the multiplier effect.

• It encourages innovation and design.

• Local producers may suffer if cheaper imports destroy their market.

• It lowers world prices.

What is one of the challenges faced by certain industries in global trade?

• Lack of competition from foreign firms.

• Excessive government support.

• Competition from more established foreign firms.

• Overproduction of goods.

What is one of the roles of the WTO besides establishing trade rules?

• Providing military support to member countries.

• Settling disagreements between member countries.

• Regulating global oil prices.

• Managing international tourism.