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Trade & Globalization

Total questions: 20

Worksheet time: 11mins

Name
Class
Date
1.

Sending goods to another country to sell.

a)

import

b)

export

2.

Bringing goods in from another country to sell.

a)

import

b)

export

3.

A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low).

a)

Free Trade

b)

Trade War

c)

Goods and Services

d)

Supply and Demand

4.

A large company such as McDonalds that has operations in more than one country.

a)

Domestic Corporation

b)

Multinational Corporation

c)

Foreign Corporation

d)

State Corporation

5.

The development of a worldwide economy where resources flow fairly freely across borders.

a)

Globalization

b)

Economy

c)

GDP

d)

Economic Independence

6.

What are some negatives of globalization?

a)

Workers are exploited in sweatshops

b)

Pollution and deforestation

c)

Low wages for factory workers in Asia and Africa

d)

All of the answers are correct

7.

A three-country trade agreement negotiated by the governments of Canada, Mexico, and the United States that took effect in 1989.

a)

The UN

b)

NAFTA

c)

NATO

d)

IMF

8.

When the economy of two countries depend on each other, it's called:

a)

economic interdependence

b)

multinational cooperation

c)

isolationism

d)

outsourcing

9.

When people trade how do both sides benefit?

a)

Countries can focus on producing specific goods from their natural resources instead of trying to create everything they need

b)

Countries can take advantage of each other making the international market more secure

c)

Countries are able to learn the weaknesses of other countries and exploit those for natural resources

d)

Countries are able to enter other countries with spies and foreign agents to undermine governments.

10.

What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar?

a)

European exports to the United States would become less expensive.

b)

U.S. exports to Europe would become cheaper.

c)

European imports from the United States would increase.

d)

U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive.

11.
When determining comparative advantage one must determine 
a)
Opportunity cost
b)
Specialization
c)
Absolute Advantage
d)
Embargos 
12.
If I am better at all types of production, I have the ______ in all forms of production.
a)
Comparative advantage
b)
Specialization
c)
Absolute advantage
d)
developed nation
13.
This is a tax on imports that is used to increase price of foreign products and raise government revenue. 
a)
tariff
b)
quota
c)
subsidy
d)
embargo
14.

President Trump has enacted tariffs against China and China has retaliated with tariffs of its own against the United States. This type of situation is known as...

a)

a trade war

b)

free trade

c)

national security

d)

Gross Domestic Product (GDP)

15.

an official ban on trade or other commercial activity with a particular country.

a)

stop

b)

embargo

c)

barr

d)

tariff

16.

Investment by a person or company based in another country is called _____________ .

a)

distribution

b)

economic interdependency

c)

foreign investment

d)

imports

17.

France imposes a limit on Avocado imports from Mexico.

a)

tariff

b)

quota

c)

embargo

18.

What is Fairtrade all about?

a)

better prices and better working conditions

b)

more trade for less money

c)

less money for workers

d)

less crops

19.
Any action a government uses to control trade between countries
a)
Trade barrier
b)
Voluntary trade
c)
Free trade
d)
Specialization
20.

When a limit is agreed about of how many of an item can be sent out

a)

Export

b)

Quota

c)

Embargo

d)

VER (Voluntary export restraint)