International Trade Quiz

What are the two main reasons for international trade?

• Demand reasons and supply reasons

• Local reasons and global reasons

• Economic reasons and social reasons

What leads to greater demand for goods and services?

• Increase in population

• Decrease in income levels

• Change in weather patterns

What is the effect of international trade on production costs?

• It reduces production costs

• It increases production costs

• It has no effect on production costs

What is the Balance of Payments?

• A record of transactions with the rest of the world

• A record of domestic transactions

• A record of government spending

What are the three main accounts of the Balance of Payments?

• Current account, Financial account, Capital transfer account

• Trade account, Investment account, Savings account

• Revenue account, Expense account, Profit account

What is one reason countries have to import goods?

• They cannot produce certain goods locally

• They have too many goods

• They want to reduce their exports

What does specialisation in international trade allow countries to do?

• Produce goods at a lower cost

• Increase the variety of goods

• Reduce competition

What is a consequence of mass production?

• Reduction in production costs

• Increase in production costs

• Decrease in product variety

What is the role of competition in international trade?

• It increases efficiency among producers

• It decreases the variety of goods

• It has no impact on production

What is the impact of international trade on consumer choice?

• Greater variety of goods and services

• Limited options for consumers

• Higher prices for goods