Global Trade and Economic Interconnectivity Quiz

Why do countries engage in trade with each other?

• To increase tariffs on each other

• To avoid any form of economic interaction

• To complement each other's resources and skills

• To isolate themselves economically

What is the concept of comparative advantage?

• A country specializing in goods it produces most efficiently

• A country producing all goods it needs

• A country avoiding trade with others

• A country imposing high tariffs on imports

Which organization is known for regulating global trade?

• European Union

• MERCOSUR

• World Trade Organization

• OPEC

What is the primary goal of neoliberal policies in trade?

• To increase government intervention

• To promote free trade and reduce barriers

• To isolate countries economically

• To increase tariffs on all goods

What is a trade war?

• A peaceful negotiation between countries

• A situation where countries impose tariffs on each other

• A collaboration to reduce tariffs

• A global economic summit

Why might a country impose tariffs on imported goods?

• To decrease the price of imports

• To promote international trade

• To support foreign industries

• To encourage domestic production

What can be a significant downside of global economic interconnectivity?

• Elimination of all trade barriers

• Complete economic independence

• International financial crises

• Increased isolation of countries

What role does the International Monetary Fund play in the global economy?

• It regulates oil prices

• It isolates countries from global trade

• It promotes economic development and stability

• It imposes tariffs on global trade

How did the global financial crisis of 2007-2008 begin?

• With a global increase in tariffs

• With a trade agreement between major economies

• With the collapse of the housing market in the United States

• With the formation of a new trade organization

What is the purpose of microlending in developing countries?

• To regulate global oil prices

• To isolate developing countries from global trade

• To promote economic development on a small scale

• To increase tariffs on imports