International Trade Concepts and Agreements

The video explains the global trade network, highlighting how goods and services are exchanged worldwide. It discusses historical trade theories like mercantilism and classical economics, emphasizing the importance of comparative advantage and GDP. The role of organizations like the WTO and trade agreements such as NAFTA in facilitating trade is explored. The video also addresses the impact of international trade on economies, noting both benefits and challenges, and the need for policies to support those affected by trade dynamics.

What is one reason why products are often sourced, assembled, and packaged in different countries?

• To avoid international trade regulations

• To take advantage of different countries' strengths

• To maximize the use of local resources

• To increase the cost of production

What was the primary goal of mercantilism in the context of international trade?

• To maximize exports and minimize imports

• To promote free trade among nations

• To encourage technological innovation

• To establish global trade agreements

How did classical economists view the concept of comparative advantage?

• As a strategy for countries to focus on their strengths

• As a way to increase a country's gold reserves

• As a means to restrict international trade

• As a method to promote self-sufficiency

What metric is used today to measure a country's economic productivity?

• Gross Domestic Product (GDP)

• Trade balance

• Export volume

• Gold reserves

What was one of the main purposes of the General Agreement on Tariffs and Trade (GATT)?

• To promote mercantilism

• To create rules for free trade

• To increase tariffs on imports

• To restrict the export of services

What is one of the roles of the World Trade Organization (WTO)?

• To promote self-sufficiency

• To restrict technological advancements

• To increase trade barriers

• To regulate international trade rules

Why do some countries form bilateral and regional trade agreements?

• To promote mercantilism

• To avoid WTO regulations

• To address specific trade needs

• To increase tariffs on imports

What was the purpose of the North American Free Trade Agreement (NAFTA)?

• To promote self-sufficiency in North America

• To increase tariffs on goods from Europe

• To facilitate more trade among the US, Mexico, and Canada

• To restrict trade between the US, Mexico, and Canada

What is a potential negative impact of international trade on local communities?

• Inability to compete with cheaper imports

• Higher prices for local goods

• Increased local employment

• Decreased access to foreign markets

What is a challenge for policymakers in the context of international trade?

• To promote mercantilism

• To eliminate all trade barriers

• To support those negatively affected by trade

• To increase the number of trade agreements