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Global Trade

Total questions: 12

Worksheet time: 10mins

Name
Class
Date
1.

Which of the following would be an example of globalization?

a)

shirts are made in Vietnam

b)

a scientist reads an article written in English

c)

an American student buys pencils made in the U.S.

d)

A shirt made in Malaysia is sold in Canada and the U.S.

2.

How do multinational companies keep their costs low?

a)

the build factories far away from raw materials

b)

they manufacture their products in only one country

c)

they build factories in countries where labor is inexpensive

d)

they assemble their final product in many different countries

3.

How do governments protect their national industries?

a)

by encouraging free trade practices

b)

by lowering quotas on imported goods

c)

by placing embargos on foreign countries

d)

by creating trade barriers to decrease competition

4.

Which of the following has helped increase economic globalization? (two answers)

a)

cargo ships and airplanes

b)

warfare

c)

telecommunications and the internet

d)

communism

e)

trade embargos

5.

Match the following trade barriers with their description

Embargo

a number or monetary value for the amount of goods that can be imported or exported

Quota

a fee or tax that a country charges on imports or exports

Tariff

a limit on trade often for political reasons

6.

Match the following organizations with their actions

World Trade Organization (WTO)

works with nations to decrease embargos, taxes, and quotas

International Monetary Fund (IMF)

offers emergency loans to countries with unstable economies

the World Bank

provides loans for large projects, like building schools, in developing countries

7.

A country decides that they will only allow a set amount of a product to be imported into their country. Which type of trade barrier is this?

(a)  

8.

A country adds a tax to clothing which makes imported t-shirts cost more than ones produced in the country. Which type of trade barrier is this?

(a)  

9.

A country does not approve of human rights abuses happening in another country so they stop importing and exporting goods to that country. Which type of trade barrier is this?

(a)  

10.

Japanese auto firms agree to limits set in Washington D.C., on the number of Japanese cars that may be sold in the U.S.

a)

Embargo

b)

Quota

c)

Tarriff

11.

France imposes a limit on Avocado imports from Mexico.

a)

tariff

b)

quota

c)

embargo

12.

The European Union added a new tax on all coffee imported from Colombia.

a)

tariff

b)

quota

c)

embargo