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World Trade

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Global trade provides consumers:

a)

Poor quality goods

b)

Incredible variety of goods

c)

High priced items from far away

d)

Cheap oil and petroleum products from Bolivia

2.

Exports are:

a)

The goods and services that a nation produces and then sells to other nations

b)

Opal and emeralds on the precious stones market for domestic consumptions in India

c)

Tin produced by and used in domestic construction in
Germany and the UK

d)

Ford Motor Corporation's labor agreement with the United Auto Workers of America

3.

A country's ability to produce more of a given product than can another country is called:

a)

Imperfect trade

b)

The Euro exchange market

c)

Yen dominance

d)

Absolute advantage

4.

The Basis for Trade refers to:

a)

Absolute Advantage and Comparative Advantage

b)

Nationalism and Domestic Pride

c)

The Foreign Exchange and Stock Market

d)

Alpha Opportunity and Beta Analysis

5.

Which is an example of a gain from trade?

a)

Predictable gain

b)

Slow production

c)

Increased political stability

d)

Russian dominance

6.

Comparative Advantage can best be defined as:

a)

A country's ability to produce a given product more efficiently than another country

b)

Inflationary costs for domestic goods

c)

Compromise of the Factors of Production

d)

The Business Cycle as demonstrated by stock market gains

7.

A tariff is:

a)

A company's profit

b)

An investment option

c)

A tax placed on an imported product

d)

A limit on the volume of goods imported

8.

An embargo is a government order that:

a)

Calls the military to action

b)

A cultural factor in trade

c)

Prohibits the movements of goods to a country

d)

Restricts First Amendment Rights

9.

An argument for trade barriers is:

a)

Aiding National Defense

b)

Selecting a Command Economy

c)

Revising domestic trade policy

d)

Scarcity

10.

Free Traders favor:

a)

Steady pricing of consumer goods

b)

Fewer or no trade restrictions

c)

Nationalism above all else

d)

Strict quotas on imports

11.

Most favored nation clauses:

a)

Are laws allowing a third country to enjoy the same tariff reductions that the US negotiates with another country

b)

Provide student loans and grants for foreign students studying in the US

c)

Favor strict tariffs and quotas on foreign nations

d)

Are laws providing for free trade with the USSR

12.

The Infant Industries
Argument:

a)

Advocates foreign adoptions

b)

Is an argument that infant vaccinations are provided world-wide

c)

Is an argument to protect the FDIC

d)

Is an argument that new/emerging industries should be protected from foreign competition

13.

An example of National Pride protectionism is:

a)

Rio Grande Valley citrus production

b)

French policies that protect its wine industry

c)

Nike's production of athletic shoes in Viet Nam

d)

Shipment of linens from Indonesia

14.

"NAFTA", a trade agreement between Canada, Mexico, and the US, stands for:

a)

North American Free Trade Agreement

b)

Northern Alliance of Free Trade Analysts

c)

North-American-France Triple Alliance

d)

Nottingham Agreement For Trade Accompaniment

15.

The foreign exchange rate is:

a)

The rate of trade between countries

b)

The exchange of foreign agriculture products between countries

c)

The price of one country's currency in terms of another currency

d)

The rate of speed and efficiency in which goods are exchanged between countries

16.

Imports are:

a)

The goods and services that a nation buys from other nations

b)

The cumulative value of petroleum products from the United Arab Emirates

c)

The sum of Argentinian beef allowed into North America

d)

Defective empirical numbers shared under NAFTA

17.

Quotas act to:

a)

Increase goods trades between Japan and the United States

b)

Limit the amount of goods allowed into a country

c)

Limit Rio Grande grapefruit production

d)

Support the purpose of GATT

18.

Foreign exchange are:

a)

Foreign currencies used by countries to conduct international trade

b)

Canadian bearer bonds used to support Quebec shipping

c)

NAFTA induced trade limits

d)

Australian students studying in the US

19.

Which are examples of trade barriers:

a)

Winter clothing produced in Singapore

b)

Free trade and GATT

c)

NAFTA and Most favored nations policies

d)

Inspections and Licenses

20.

Which of the following are examples of types of trade tariffs?

a)

Protective tariffs and Revenue tariffs

b)

GATT tariffs and NAFTA tariffs

c)

Embargos and Quotas

d)

Absolute advantage measures and Exports