Introduction to trade

What was a primary goal of mercantilism, a system prevalent before the 19th century?

• To maximize imports and minimize exports.

• To prioritize self-sufficiency and increase a country's supply of gold.

• To encourage free trade among all nations.

• To focus solely on agricultural production.

What is the main idea behind the principle of comparative advantage and specialization in international trade?

• Countries should produce all goods and services domestically to create more jobs.

• Countries should focus on producing goods they are comparatively good at and import the rest.

• Countries should only trade with their immediate neighbors.

• Countries should aim to maximize their gold reserves through exports.

How do economists primarily measure a country's economic productivity today?

• By the total amount of gold reserves held by the country.

• By the number of jobs created within a year.

• By the sum of all final goods and services a country produces in a year.

• By the volume of goods exported compared to imported.

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What was a key expansion of the World Trade Organization's (WTO) definition of trade compared to its predecessor, GATT?

• It began to include only manufactured goods.

• It focused exclusively on agricultural commodities.

• It expanded to include services and intellectual property.

• It restricted trade to only between neighboring countries.