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International Trade Formative 1

Total questions: 21

Worksheet time: 2hrs 45mins

Name
Class
Date
1.

What is the meaning of international trade?

a)

The movement of goods and services between different countries

b)

The exchange of ideas and cultural practices between nations

c)

The establishment of diplomatic relations among countries

d)

The formation of international agreements for military alliances

2.

How do import quotas and export subsidies impact international trade?

a)

They promote free trade and global economic growth

b)

They encourage competition and market access for all countries

c)

They can distort trade and create unfair advantages for certain countries or industries

d)

They have no impact on international trade

3.

What are export subsidies?

a)

Taxes imposed on exported goods

b)

Financial assistance provided to domestic producers for exporting goods

c)

Agreements between countries to eliminate import tariffs

d)

Trade restrictions on the quantity of goods that can be exported

4.

What role do government policies play in international trade?

a)

They have no influence on international trade

b)

They can promote or restrict trade through regulations and policies

c)

They only impact domestic markets, not international trade

d)

They promote global economic inequality

5.

How do exchange rates affect international trade?

a)

They have no impact on international trade

b)

They can impact the price competitiveness of goods and services

c)

They only affect countries with strong economies

d)

They promote protectionist trade policies

6.

What is a common barrier to international trade?

a)

Tariffs and import/export quotas

b)

Promotion of free trade agreements

c)

Cultural exchange and mutual understanding

d)

Shared economic interests among nations

7.

What is the impact of international trade on employment?

a)

Increased unemployment due to import competition

b)

Decreased job opportunities in domestic markets

c)

Limited impact on employment levels

d)

Increased job opportunities due to export expansion

8.

Which of the following is a key benefit of international trade?

a)

Increased competition leading to higher prices

b)

Reduction in global economic inequality

c)

Decreased availability of goods and services

d)

Greater reliance on domestic production only

9.

What is a trade deficit?

a)

When a country exports more goods than it imports

b)

When a country imports more goods than it exports

c)

When a country has an equal balance of imports and exports

d)

When a country does not engage in international trade

10.

What is a trade barrier?

a)

A measure that restricts or prevents the free flow of goods and services across borders

b)

A country's comparative advantage in producing a particular good

c)

A form of economic aid provided to developing countries

d)

A financial penalty imposed on countries with trade surpluses

11.

What is the World Trade Organization (WTO)?

a)

An international organization that promotes global environmental conservation

b)

A group of countries that aim to establish a global military alliance

c)

An intergovernmental body that regulates and promotes international trade

d)

A forum for cultural exchange and diplomatic negotiations among nations

12.

What is one of the primary benefits of international trade?

a)

Increased tariffs and trade barriers

b)

Reduced economic growth

c)

Expansion of markets and increased access to goods and services

d)

Limited cultural exchange

13.

How does international trade contribute to economic growth?

a)

By decreasing competition among countries

b)

By limiting the availability of goods and services

c)

By promoting specialization and comparative advantage

d)

By isolating domestic markets from global trends

14.

How does international trade benefit consumers?

a)

By reducing consumer choices

b)

By increasing prices of goods and services

c)

By providing access to a wider variety of goods and services

d)

By limiting availability of goods and services in the domestic market

15.

What is the role of international trade in fostering global cooperation?

a)

Restricting diplomatic relations among countries

b)

Promoting isolationism and protectionism

c)

Fostering economic interdependence and peaceful relations among nations

d)

Limiting opportunities for cultural exchange and mutual understanding

16.

Which of the following is NOT a factor affecting international trade?

a)

Exchange rates

b)

Government policies and regulations

c)

Climate and geographical location

d)

Language and cultural differences

17.

How do exchange rates affect international trade?

a)

They have no impact on international trade

b)

They can impact the price competitiveness of goods and services

c)

They only affect countries with strong economies

d)

They promote protectionist trade policies

18.

Which of the following is an example of a non-tariff barrier to international trade?

a)

Import quotas

b)

Export subsidies

c)

Language differences

d)

Trade agreements

19.

What is an import quota?

a)

A tax imposed on imported goods

b)

A restriction on the quantity of goods that can be imported

c)

Financial assistance provided to domestic producers for exporting goods

d)

An agreement between countries to eliminate import tariffs

20.

What is a trade agreement?

a)

A tax imposed on imported goods

b)

A restriction on the quantity of goods that can be imported

c)

Financial assistance provided to domestic producers for exporting goods

d)

An agreement between countries to eliminate trade barriers and promote trade

21.

Which of the following is an example of a trade agreement?

a)

Import quotas

b)

Export subsidies

c)

World Trade Organization (WTO)

d)

Trade tariffs