ML FBLA Exploring Economics - International Trade

What is international trade?

• Trading goods and services within a country

• The exchange of goods and services between countries

• Buying and selling stocks in other countries

• The trade of natural resources within a region

What is the main benefit of international trade?

• Countries can avoid paying taxes

• Countries can specialize in producing goods they are best at

• Countries can limit the goods they produce

• Countries can avoid importing products

Which of the following is an example of an export?

• Buying a car from another country

• Selling a phone to another country

• Receiving a shipment of coffee beans from another country

• Trading currency between countries

What is the term for the difference between a country’s exports and imports?

• Balance of trade

• Gross Domestic Product (GDP)

• Currency exchange rate

• Global surplus

If a country imports more than it exports, it has a:

• Trade surplus

• Trade deficit

• Balanced trade

• Strong economy

What does a country need to have in order to trade internationally?

• A stable currency and a government tax policy

• Natural resources only

• A large population

• International agreements and transportation networks

Why do countries trade with each other?

• To get access to goods and services they cannot produce efficiently themselves

• To create large government agencies

• To control the global supply of natural resources

• To avoid technological advancements

Which of the following is an example of a trade barrier?

• Free trade agreement

• High tariffs on imported goods

• Lower taxes on imports

• A lower supply of products

What is a tariff?

• A tax on exported goods

• A tax on imported goods

• A government subsidy for exporters

• A government regulation on exports

What is the purpose of a quota in international trade?

• To limit the amount of goods that can be exported

• To increase competition between countries

• To limit the amount of a product that can be imported into a country

• To promote free trade between countries