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International Trade

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

Tax on imported goods is known as

a)

Quota

b)

Tariff

c)

Embargo

d)

Licensing

2.

Physical control to ban the imports of certain goods because of economics, social and politics is known as

a)

Tariff

b)

Quota

c)

Embargo

d)

License

3.

The followings are reasons for international trade EXCEPT

a)

Encourage opportunity in local direct investment

b)

Increase productivity

c)

Make the market more competitive

d)

Increased efficiency

4.

Which of the following is not a non-tariff barrier?

a)

A. Subsidies

b)

B. Tariff

c)

C. Import Quota

d)

D. Permit and Licensing

5.

What is product life cycle theory for international trade?

a)

A. trade between countries takes place because each country has different levels of resource intensity

b)

B. international trade takes place because countries are at different stages of production levels

c)

C. trade between countries is determined by the availability of related and supported industries

d)

D. trade between countries is determined by similar comparative advantage to exchange similar products

6.

Which of the following is NOT a benefit of free international trade?

a)

A.

Benefits local farmers and small businesses

b)

B. Opens up markets to a greater diversity of products

c)

C.

Creates more competition for businesses

d)

D.

Decreases labor

costs for big business

7.

Which of the following best describes the term balance of trade?

a)

A.

A trade agreement between two countries

b)

B.

Trade among countries is equally beneficial for

all of the countries involved

c)

C.

Countries are only allowed to import the same value of goods that they export

d)

D.

The value of a country’s exports equals the country’s imports

8.

Which two trades are intermediate between the producers and final comsumers?

a)

Import and export trade

b)

Wholesale and retail trade

9.
The definition of TRADE is __________________.
a)
Importing goods
b)
to buy or sell goods or services
c)
Exporting goods
10.
Why does the United States need to import products?
a)
The US does not import products
b)
Some are easier and cheaper to make in other countries
c)
The US makes all of its own products