U7L6

Which country is an example of one that previously embraced the Self-Sufficiency Model?

• China

• India

• Brazil

• Japan

What is one of the requirements of the Self-Sufficiency Model?

• Increase in foreign investment

• Import limits (tariffs = taxes)

• Reduction in domestic taxes

• Expansion of international trade

What organization was established in 1995 to promote international trade?

• United Nations

• World Trade Organization (WTO)

• International Monetary Fund (IMF)

• World Bank

What is one of the principal ways the WTO aims to reduce barriers to international trade?

• Increase import tariffs

• Restrict foreign investment

• Reduce restrictions on trade

• Limit domestic production

What is a criticism of the WTO mentioned in the text?

• It increases domestic taxes

• It reduces international trade

• It threatens the sovereignty of individual countries

• It limits foreign investment

What is one of the sources of finance for developing countries?

• Domestic savings

• Foreign Direct Investment (FDI)

• Local businesses

• National taxes

What is a characteristic of the black market mentioned in the text?

• Government-sanctioned channels

• Legal market transactions

• Economic activity outside government control

• High transparency

What is one of the outcomes of the international trade model for industries?

• Decreased innovation

• Increased inefficiency

• Industries remain competitive and innovative

• Reduced international competition

What might the IMF or World Bank impose on a developing nation struggling to repay a loan?

• Structural Adjustment Program (SAP)

• Debt Forgiveness Program

• Economic Expansion Initiative

• Currency Stabilization Plan

What has compelled many countries to re-examine their commitment to the International Trade Model?

• Technological advancements

• Globalization

• Political changes

• Environmental concerns