CHAPTER 9 TRADE IN AGRICULTURAL PRODUCTS

What happens when there is an excess supply of agricultural products in the market?

• Prices increase

• Prices decrease

• Demand increases

The allocation of resources in agriculture is determined by:

• Government intervention only

• Market forces and government policies

• The level of taxation

Which organization plays a significant role in regulating global agricultural trade?

• International Monetary Fund (IMF)

• World Trade Organization (WTO)

• Food and Agriculture Organization (FAO)

Which of the following strategies helps increase profitability in agricultural trade?

• Relying solely on one crop

• Relying solely on one crop

• Ignoring global market trends

What is one major challenge that affects agricultural investment?

• Lack of demand for agricultural products

• Elimination of global trade agreements

• Climate change and environmental risks

Which of the following is an example of diversification in agricultural trade?

• Investing in livestock farming along with crop production

• A farmer only growing rice for local consumption

• A country exporting only palm oil

What is the best definition of agricultural trade?

• The regulation of domestic farming techniques

• The restriction of agricultural goods from entering international markets

• The exchange of food, livestock, and raw materials between countries

Economic diversification in agriculture refers to

• The expansion of agricultural activities beyond traditional farming

• The restriction of agricultural production to only staple crops

• The elimination of exports to focus on domestic trade

Do global trade policies influence the price of agricultural goods?

• Yes

• No

Do global trade policies influence the price of agricultural goods?

• Yes

• No