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Trade/protectionism/free-trade

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.
Example: The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year.
a)
Quota
b)
Tariff
c)
Embargo
2.

Makes imported goods more expensive

a)

Quota

b)

Tariff

c)

Embargo

3.
What is the primary purpose NAFTA?
a)
To reduce trade barriers among the US, Canada, and Mexico
b)
To reduce trade barriers among Central America and Mexico
c)
To reduce trade barriers among Brazil and Mexico
d)
To encourage free trade between the US, Europe, and Canada
4.

One argument against NAFTA

a)

Lower prices of goods

b)

Outsources jobs to outside countries

c)

Increase competition

d)

Economic growth

5.

refers to the unrestricted flow of goods, services, and productive resources between countries

a)

free trade

b)

balance of trade

c)

trade surplus

d)

trade deficit

6.
The use of trade barriers to protect a nation’s industries from foreign competition
a)
Balance of trade
b)
NAFTA
c)
Quotas
d)
Protectionism 
7.

limits the quantity of a good imported into a country

a)

embargo

b)

quota

c)

tariff

8.
What is a tariff?
a)
A government order to stop trade
b)
A limit placed on imports
c)
A tax placed on imports
9.

Which of these country is NOT a member of ASEAN?

a)

Cambodia

b)

Brunei darussalam

c)

Laos

d)

China

10.

Define common markets.

a)

These are customs unions which adopt a common currency. The Eurozone is an example.

b)

These include the free movement of factors of production (e.g. labour) between member countries.

c)

There is free trade between member countries combined with a common external tariff on goods from countries outside the customs union.

d)

In these trading blocs trade barriers are removed between member countries but each member can impose trade restrictions on non-members.

11.

Identify custom unions.

a)

These are customs unions which adopt a common currency. The Eurozone is an example.

b)

In these trading blocs trade barriers are removed between member countries but each member can impose trade restrictions on non-members.

c)

These include the free movement of factors of production (e.g. labour) between member countries.

d)

There is free trade between member countries combined with a common external tariff on goods from countries outside the customs union.

12.

Define trading bloc.

a)

Groups of countries that agree to reduce or eliminate trade barriers between themselves

b)

Union that adopts a common currency

c)

Measure of the the price of a country’s exports relative to its imports.

d)

refers to the value of exports minus imports.