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Worksheetsglobalization and trade
Total questions: 85
Worksheet time: 47mins
The difference between the value of a country’s exports and the value of its imports
Imports
Free trade
Balance of trade
Exports
Goods and services produced domestically and sold in other countries
Imports
Globalization
Tariffs
Exports
The trading of one national currency for another
Foreign exchange
Imports
Protective tariff
Exports
The policy of eliminating barriers to international trade
Global economy
Balance of trade
Exports
Free trade
The system of economic interaction among the world's countries
Free trade
foreign exchange
Global economy
Imports
Goods and services produced in other countries and sold domestically
Free trade
Imports
Tariffs
Exports
A tax on imported goods designed to protect domestic producers from foreign competition
Free trade
Protective tariff
Imports
Exports
The policy of erecting trade barriers to shield domestic markets from foreign competition
Protectionism
Balance of trade
Global economy
Exports
Which of the following is not a contributor to the dramatic increase of global trade?
The use of satellite systems to communicate
The shift of trade to lighter manufactured goods
The development of more advanced jet planes
The decrease in demand for agricultural goods
When a country can produce a good or service at a lower opportunity cost than its competitors can, it has
An international advantage
A comparative advantage
An absolute advantage
A global advantage
When consumers shop for popcorn, some seek buttered popcorn, and others seek kettle corn. This is because popcorn is
An inelastic product
An international product
A differentiated product
A comparative product
What country is the world's leading importer of goods and services?
India
Russia
China
The United State
What is one benefit of global trade for consumers in the United States?
Global trade lowers the tax on foreign items
Global trade lowers the price of goods
Global trade increases U.S. wages for workers
Global trade helps strengthen local economies
Which of the following would most likely support free trade?
A protectionist
A business owner
An economist
A consumer
A ban on trade with another country or group of countries is called
An import quota
A protective tariff
A trade embargo
A voluntary export restraint
Some protectionists argue that countries "dump" their products into foreign markets. "Dumping" refers to
Selling a good for less than it costs to produce it
Discounting a good for political or social purposes
Trading a good without any tariffs or import taxes
Giving a surplus good to a country at no cost
The World Trade Organization oversees trade negations aimed at
Promoting domestic trade
Reducing trade barriers
Increasing import tariffs
Restricting globalization
The difference between the value of a country's exports and the value of its imports is called
Exchange rate
Balance of trade
Currency depreciation
Trade surplus
What does it mean when a country is in a trade surplus?
Its imports exceed its exports
It has a high exchange rate
Its exports exceed its imports
It has a low exchange rate
In economics, "depreciation" describes a
Currency that has equal value to another currency
Rapid decrease in demand for a specific currency
Currency that is too weak to purchase foreign imports
Fall in the value of one currency relative to another
Trade
buying and selling goods and services from other countries
when a business transfers work overseas, usually from a developed country to developing countries
when one country produces a good at a lower opportunity cost than another
a country with a high GDP, high standard of living, and high wages
Globalization
the dollar value of the final goods and services products produced in a country’s borders in a given year
the process of the world’s economies becoming more interconnected
the comparison of a country’s imports vs exports
when countries only produce what they are best at
Exports
a country with a high GDP, high standard of living, and high wages
goods and services purchased from other countries
used to make a final product
goods and services produced in one country and sold to other countries
Imports
goods and services purchased from other countries
when one country produces a good at a lower opportunity cost than another
goods and services produced in one country and sold to other countries
when countries only produce what they are best at
Trade Balance
the dollar value of the final goods and services products produced in a country’s borders in a given year
the comparison of a country’s imports vs exports
when a business transfers work overseas, usually from a developed country to developing countries
a country with a low GDP, low standard of living, and low wages
Trade Imbalance
when a country has significant differences in exports vs imports
the dollar value of the final goods and services products produced in a country’s borders in a given year
used to make a final product
a tax on imports that one country imposes on another
Trade Surplus
when a business transfers work overseas, usually from a developed country to developing countries
when imports exceed exports
the dollar value of the final goods and services products produced in a country’s borders in a given year
when exports exceed imports
Trade Deficit
policy that promotes elimination of trade barriers, such as tariffs and quotas
when imports exceed exports
non-economic negative effects from trade
when exports exceed imports
Gross Domestic Product (GDP)
when a business transfers work overseas, usually from a developed country to developing countries
when countries only produce what they are best at
when one country produces a good at a lower opportunity cost than another
the dollar value of the final goods and services products produced in a country’s borders in a given year
Intermediate Goods
goods used to make a final product
a tax on imports that one country imposes on another
non-economic negative effects from trade
a limit on the amount of goods that one country can import from another
Negative externalities
goods used to make a final product
policy that promotes elimination of trade barriers, such as tariffs and quotas
a limit on the amount of goods that one country can import from another
non-economic negative effects from trade
Outsourcing
when one country produces a good at a lower opportunity cost than another
when a business transfers work overseas, usually from a developed country to developing countries
when one country can out produce another, despite using the same amount of resources
when countries only produce what they are best at
Developed Country
a country with a high GDP, high standard of living, and high wages
the process of the world’s economies becoming more interconnected
buying and selling goods and services from other countries
a country with a low GDP, low standard of living, and low wages
Developing Country
non-economic negative effects from trade
a country with a high GDP, high standard of living, and high wages
policy that promotes elimination of trade barriers, such as tariffs and quotas
a country with a low GDP, low standard of living, and low wages
Specialization
a refusal to trade with another country
when countries only produce what they are best at
a tax on imports that one country imposes on another
policy that promotes elimination of trade barriers, such as tariffs and quotas
Absolute advantage
when a business transfers work overseas, usually from a developed country to developing countries
when one country produces a good at a lower opportunity cost than another
when one country can out produce another
when countries only produce what they are best at
Comparative Advantage
when one country produces a good at a lower opportunity cost than another
when two countries impose tariffs on each other’s goods, usually to force some action
when a business transfers work overseas, usually from a developed country to developing countries
when one country can out produce another
Protectionism
policy that seeks to protect domestic producers by introducing trade barriers
when imports exceed exports
the process of the world’s economies becoming more interconnected
the dollar value of the final goods and services products produced in a country’s borders in a given year
Tariff
when imports exceed exports
the comparison of a country’s imports vs exports
the process of the world’s economies becoming more interconnected
a tax on imports that one country imposes on another
Quota
policy that promotes elimination of trade barriers, such as tariffs and quotas
goods used to make a final product
a limit on the amount of goods that one country can import from another
when countries only produce what they are best at
Trade War
when imports exceed exports
when two countries impose tariffs on each other’s goods, usually to force some action
when one country can out produce another, despite using the same amount of resources
policy that promotes elimination of trade barriers, such as tariffs and quotas
Sanctions
financial penalties imposed on a country, usually increased tariffs or a ban on trade
when a country has significant differences in exports vs imports
the process of the world’s economies becoming more interconnected
goods used to make a final product
Embargo
when a business transfers work overseas, usually from a developed country to developing countries
the dollar value of the final goods and services products produced in a country’s borders in a given year
a refusal to trade with another country
policy that promotes elimination of trade barriers, such as tariffs and quotas
Free Trade
non-economic negative effects from trade
policy that promotes elimination of trade barriers, such as tariffs and quotas
policy that seeks to protect domestic producers by introducing trade barriers
when two countries impose tariffs on each other’s goods, usually to force some action
What is the term for an economy in which goods and services are freely traded with other economies?
Isolated economy
Closed economy
Mixed economy
Open economy
What are imports in the context of international trade?
Tax charged on imports
Domestic products
Goods and services bought from other countries
Goods and services sold to other countries
What is the difference between visible trade and invisible trade?
Visible trade involves goods, while invisible trade involves services
Visible trade involves services, while invisible trade involves goods
Both involve goods
Both involve services
What is the balance of trade?
Difference between visible imports and visible exports
Tax charged on imports
Limit on the quantity of goods produced
Difference between total imports and total exports
When there is a surplus balance of trade, what does it mean?
Visible exports are greater than visible imports
Visible imports are greater than visible exports
Total exports are greater than total imports
Total imports are greater than total exports
What is the balance of payments?
Difference between total imports and total exports
Difference between visible imports and visible exports
Difference between visible imports and visible exports
Difference between total imports and total exports
What is a tariff in the context of international trade?
Tax charged on exports
Tax charged on imports
Limit on the quantity of goods produced
Ban on the trade of certain goods
What is a quota?
Ban on the trade of certain goods
Limit on the quantity of goods produced
Tax charged on imports
Price support given by the government to businesses
What is an embargo?
Tax charged on imports
Limit on the quantity of goods produced
Ban on the trade of certain goods
Price support given by the government to businesses
What is a subsidy?
Tax charged on imports
Ban on the trade of certain goods
Price support given by the government to businesses
Limit on the quantity of goods produced
What is international trade?
Exchange of goods and services within a country
Exchange of goods and services between different countries
Exchange of goods and services within a region
Exchange of goods and services within a continent
What does import substitution involve?
Replacing imports with local production
Replacing local production with imports
Banning imports
Taxing imports heavily
How is the balance of trade calculated?
Total exports - total imports
Visible exports - visible imports
Total imports - total exports
Visible imports - visible exports
How is the balance of payments calculated?
Visible exports - visible imports
Total imports - total exports
Visible imports - visible exports
Total exports - total imports
How is a country’s wealth measured?
ARP
COD
GDP
RTE
What does GDP stand for?
Giant Domestic Product
Great Domestic Product
Good Domestic Product
Gross Domestic Product
Increasing interdependence of nations and peoples across the globe.
Infrastructure
Globalization
Specialization
Sending goods to another country to sell.
import
export
Bringing goods in from another country to sell.
import
export
A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (taxes on exports).
Free Trade
Trade
Goods
Supply and Demand
The development of a worldwide economy where resources flow fairly freely across borders.
Globalization
Economy
GDP
What are some negatives of globalization?
Workers are exploited in sweatshops
Pollution and deforestation
Low wages for factory workers in Asia and Africa
All of the answers are correct
What are some positives of globalization?
Cheap sneakers and clothes
Cheap electronics
Information is easy to access and it travels quickly (internet and social media)
All of the answers are correct
The exchange of goods and services by sale or barter driven by the need for resources.
Globalization
Trade
Standard of Living
According to CNN, the United States receives 80% of its avocados from Mexico. Mexico receives most of its auto parts from the United States. This is an example of the following.
Interdependence
Infrastructure
Globalization
WE do not live in a global market?
