Globalization Unit Quiz

What is the primary purpose of trade agreements like NAFTA and USMCA?

• To increase tariffs on imports

• To facilitate trade between countries

• To restrict exports

• To eliminate all trade barriers

Which of the following best describes an import?

• Goods brought into a country from abroad

• Goods sent out of a country

• A type of currency exchange

• A trade agreement between nations

What does the term 'exchange rate' refer to?

• The value of one currency in relation to another

• The total amount of imports and exports

• The cost of goods in a domestic market

• The tariffs imposed on foreign goods

Which of the following is a potential negative effect of globalization?

• Increased cultural exchange

• Job loss in certain industries

• Lower prices for consumers

• Access to a wider variety of goods

How did the USMCA differ from NAFTA?

• It eliminated all tariffs

• It included stricter labor and environmental standards

• It was a bilateral agreement

• It focused solely on agricultural trade

Which of the following is a common effect of globalization?

• Increased competition

• Cultural homogenization

• Isolationism

• Technological advancement

What role do exchange rates play in international trade?

• They determine the quality of goods

• They affect the price of imports and exports

• They eliminate trade barriers

• They regulate the flow of information

Which of the following statements about imports is true?

• Imports are always more expensive than domestic goods

• Imports can help lower prices for consumers

• Imports are illegal in most countries

• Imports do not affect the domestic economy

What is one potential benefit of globalization?

• It promotes international cooperation

• It can lead to environmental harm

• It increases cultural diversity

• It enhances economic growth

What is the significance of the term 'trade balance'?

• It measures the total number of imports

• It compares the value of exports to imports

• It indicates the strength of a currency

• It determines the number of trade agreements