Latin American Trade Assessment

What is voluntary trade?

• When countries are forced to trade with each other

• When different countries choose to exchange goods with one another

• When countries only trade within their borders

• When countries stop trading completely

Why does Brazil have such a diverse export market?

• Because of its small population

• Due to limited natural resources

• Because of its vast resources and varied industries

• Due to lack of agricultural land

What percentage of Venezuela's trade revenue comes from oil exports?

• 75%

• 80%

• 85%

• 90%

Which of these is NOT a natural trade barrier?

• Mountain ranges

• Deserts

• Tariffs

• Rainforests

What is the main challenge Bolivia faces in international trade?

• It has too many ports

• It is landlocked

• It has too much coastline

• It has too many rivers

Which automotive companies have manufacturing plants in Mexico?

• Only American companies

• Only Japanese companies

• Only European companies

• A mix of American, Japanese, and European companies

What is a quota?

• A complete ban on trade

• A tax on imported goods

• A limit on imported goods

• A currency exchange rate

When did NAFTA go into effect?

• January 1, 1994

• December 31, 1993

• January 1, 1995

• December 31, 1994

What is the primary purpose of tariffs?

• To encourage more imports

• To make domestic products more competitive

• To decrease local production

• To eliminate all trade

Which Latin American country is the largest exporter of goods and services?

• Mexico

• Venezuela

• Brazil

• Colombia