Vocab #9

What is the purpose of protectionism in international trade?

• To increase exports

• To limit international trade to protect domestic firms and jobs

• To promote free trade

• To reduce tariffs

What are trade barriers?

• Policies that promote free trade

• Policies that limit the amount of foreign trade a country carries on

• Taxes on exports

• Legal limits on domestic production

What is a tariff?

• A subsidy for domestic firms

• A tax on imports

• A legal limit on exports

• A free trade agreement

What is a quota in the context of international trade?

• A tax on exports

• A legal limit on the number of goods imported

• A government payment to firms

• A free trade agreement

What is a subsidy?

• A tax on imports

• A government payment to firms to make them more competitive

• A legal limit on exports

• A free trade agreement

What is free trade?

• Trade with high tariffs

• International trade with little or no trade restrictions

• Trade with quotas

• Trade with subsidies

What does the balance of trade represent?

• Exports plus imports

• Exports minus imports

• Imports minus exports

• Imports plus exports

What is a trade surplus?

• Imports > exports

• Exports > imports

• Exports = imports

• Imports = exports

What is a trade deficit?

• Exports > imports

• Imports > exports

• Exports = imports

• Imports = exports

What is balanced trade?

• Exports > imports

• Imports > exports

• Exports = imports

• Imports = exports