Understanding Globalization and Trade

Which term refers to goods and services brought into a country from abroad for sale?

• Exports

• Imports

• Free trade

• Protectionism

What is the definition of exports?

• Goods and services sold to other countries

• Goods and services bought from other countries

• Taxes on foreign goods

• Currency exchange rates

Which of the following best describes free trade?

• Trade with no restrictions or tariffs between countries

• Trade with high taxes on imports

• Trade limited to only one country

• Trade that only involves services

What is protectionism?

• Encouraging free trade between nations

• Limiting imports to protect domestic industries

• Exchanging currency between countries

• Selling goods abroad

A protective tariff is:

• A tax on domestic goods

• A tax on imported goods to protect local industries

• A tax on exported goods

• A tax on services

The balance of trade is:

• The difference between a country's imports and exports

• The total value of a country's currency

• The number of trading partners a country has

• The amount of tariffs collected

Which of the following is a benefit of free trade?

• Higher prices for consumers

• Greater variety of goods and services

• Fewer choices for consumers

• Increased tariffs

If a country exports more than it imports, what is the result for its balance of trade?

• Trade deficit

• Trade surplus

• No effect

• Currency devaluation

Which of the following is a positive effect of globalization?

• Loss of jobs in developing countries

• Increased access to new markets and technologies

• Higher tariffs on imports

• Decreased international cooperation

What is a potential negative effect of globalization?

• Increased cultural exchange

• Loss of local jobs due to outsourcing

• Lower prices for consumers

• More product choices