Trade and the World Economy Quiz

What is the term for countries trading based on mutual supply and demand needs?

• Comparative Advantage

• Complementarity

• Neoliberalism

• Agglomeration

Which of the following is an example of comparative advantage?

• The U.S. importing oil from Saudi Arabia.

• China specializing in electronics manufacturing.

• The EU providing subsidies to farmers.

• Countries using tariffs to protect domestic industries.

Neoliberal policies primarily promote:

• Increased government intervention in trade.

• Free markets, privatization, and minimal government intervention.

• Protectionist trade barriers.

• Centralized economic planning.

Which trade agreement facilitates trade between the U.S., Canada, and Mexico?

• EU

• WTO

• USMCA (formerly NAFTA)

• Mercosur

Which global organization oversees international trade rules?

• IMF

• OPEC

• WTO

• EU

What is a tariff?

• Financial aid for industries.

• Import taxes to protect domestic industries.

• Environmental and labor laws affecting trade.

• Small loans to entrepreneurs.

The 2008 Global Financial Crisis originated in:

• Greece

• China

• The U.S.

• Japan

What does the IMF provide to struggling nations?

• Trade agreements

• Financial support

• Military aid

• Technological assistance

Which of the following has significantly reduced the cost of international trade?

• Increased tariffs

• Container shipping

• Trade regulations

• Government subsidies

Outsourcing involves:

• Shifting from manufacturing to services.

• Moving jobs from developed to developing nations.

• Increasing government intervention in trade.

• Focusing on domestic production.