Understanding Currency Exchange in International Trade

What is a tariff?

• A tax on imported goods

• A limit on the number of goods that can be imported

• A ban on trade with specific countries

• A system for exchanging currency

How do quotas affect local businesses?

• By reducing competition

• By increasing competition

• By banning trade with specific countries

• By making foreign goods cheaper

What is the purpose of an embargo?

• To stop all trade with a country

• To tax imported goods

• To limit the number of goods imported

• To exchange currency

Why is currency exchange important in international trade?

• It allows countries to convert their money for trade

• It bans trade with specific countries

• It limits the number of goods that can be imported

• It taxes imported goods

What can cause trade wars between countries?

• Tariffs

• Quotas

• Embargoes

• Currency exchange