International Trade Quiz

What term describes the difference in value between a country's imports and exports?

• Global economy

• Balance of trade

• Free trade

• Protective tariff

What nickname did Florence, Alabama, earn due to the booming T-shirt industry?

• T-Shirt Hub of America

• T-Shirt Capital of the United States

• T-Shirt City of the World

• T-Shirt Center of the South

What is the role of container ports in global trade?

• They increase the cost of shipping

• They facilitate the loading and unloading of goods

• They limit the size of ships

• They reduce the number of goods shipped

Why are electronic devices significant in global trade?

• They are difficult to transport.

• They are easier to transport and sell for higher prices.

• They are perishable.

• They are not in demand.

What is a comparative advantage in trade?

• Producing a good more efficiently than other countries

• Producing a good at a lower opportunity cost than competitors

• Trading goods for other services

• Having a larger workforce

Why does it make sense for the United States to trade airplanes for Canada's timber?

• The United States has a larger workforce

• The opportunity cost of producing timber is lower in Canada

• The United States has more resources

• Canada cannot produce airplanes

What is the significance of the term "differentiated products" in the context of global trade?

• It refers to products that are identical worldwide

• It highlights the importance of variety in consumer goods

• It indicates products that are not traded internationally

• It describes products that are only available locally

What is the significance of consumer demand in the context of differentiated products?

• It reduces the variety of products

• It drives global trade

• It has no impact on trade

• It limits production

What percentage of U.S. exports did services account for in 2017?

• One-fourth

• One-third

• Half

• Two-thirds

Which U.S. city is mentioned as having T-shirt makers affected by the phasing out of textile quotas?

• New York, New York

• Florence, Alabama

• Los Angeles, California

• Chicago, Illinois