International Trade Quiz

What is international trade?

• Exchange of goods and services within a single country

• Exchange of goods and services across national borders

• Exchange of goods and services within a continent

• Exchange of goods and services within a city

Why is international trade crucial?

• It limits economic growth

• It is only beneficial for large countries

• It is crucial for global economic growth and development

• It only benefits the technology sector

What does international trade involve?

• Only one country buying and selling

• Multiple countries buying and selling from each other

• Only digital products being exchanged

• Only agricultural products being exchanged

Why might a country choose to import goods rather than produce them locally?

• To access products not available domestically

• To increase local employment

• To reduce transportation costs

• To avoid international trade

What is one potential advantage of importing goods?

• Higher quality than local options

• Increased local production

• Reduced foreign dependency

• Lower domestic prices

What are exports?

• Goods or services sold to other countries

• Goods or services bought from other countries

• Goods or services used domestically

• Goods or services stored for future use

How do exports benefit a country's economy?

• Boost domestic economy and create jobs

• Decrease domestic production

• Reduce global influence

• Increase import dependency

What is one effect of increasing a country's exports?

• Increase a country's global influence

• Decrease a country's global influence

• Reduce domestic employment

• Lower domestic production

What is the difference between a trade surplus and a trade deficit?

• Trade surplus: imports > exports; Trade deficit: exports > imports

• Trade surplus: exports > imports; Trade deficit: imports > exports

• Trade surplus: imports = exports; Trade deficit: imports < exports

• Trade surplus: exports < imports; Trade deficit: exports = imports

What are tariffs?

• Taxes imposed on exported goods

• Taxes imposed on imported goods

• Fees for domestic sales

• Subsidies for local industries