International Trade

What is one major benefit of international trade?

• Increased economic efficiency and access to a variety of goods.

• Increased tariffs on imports.

• Reduced competition in local markets.

• Limited access to foreign goods.

How do tariffs affect the price of imported goods?

• Tariffs increase the price of imported goods.

• Tariffs have no effect on the price of imported goods.

• Tariffs decrease the price of imported goods.

• Tariffs only affect domestic goods, not imports.

What is globalisation in the context of trade?

• A strategy for increasing domestic production only.

• Globalisation in trade is the process of increasing economic integration and interdependence among countries through the exchange of goods and services.

• A process that isolates economies from each other.

• A method of reducing trade barriers between countries.

Name a common trade barrier that countries use.

• Tariffs

• Subsidies

• Embargoes

• Quotas

How does international trade contribute to economic growth?

• International trade contributes to economic growth by promoting specialisation, increasing productivity, expanding markets, and enhancing consumer choice.

• International trade restricts access to foreign goods and services.

• International trade decreases competition among businesses.

• International trade leads to job losses in local industries.

How can trade barriers impact consumers?

• Trade barriers can lower prices for consumers.

• Trade barriers can increase prices, limit choices, and reduce product quality for consumers.

• Trade barriers always improve product quality.

• Trade barriers expand the variety of products available.

What are some examples of non-tariff barriers?

• Trade agreements between countries

• Currency devaluation strategies

• Examples of non-tariff barriers include quotas, import licensing, standards and regulations, subsidies, and customs procedures.

• Tariffs on imported goods

How does globalisation influence local economies?

• Globalisation enhances trade, investment, and technology flow, impacting local job markets and business practices.

• Globalisation reduces the need for local businesses.

• Globalisation isolates local economies from global markets.

• Globalisation has no effect on local job opportunities.

What is the relationship between trade and employment?

• Employment rates are solely determined by government policies.

• Trade only affects employment in the agricultural sector.

• Trade influences employment by creating jobs in competitive sectors while potentially displacing jobs in less competitive industries.

• Trade has no impact on employment levels.

How do exchange rates affect international trade?

• Exchange rates only affect domestic prices, not international trade.

• Exchange rates affect international trade by influencing the prices of imports and exports, impacting competitiveness and trade balances.

• Exchange rates are determined solely by government policies, unrelated to market demand.

• Exchange rates have no impact on the volume of goods traded between countries.