WorksheetsBAIB3004 Week 1 Seminar 24/25
Total questions: 10
Worksheet time: 5mins
What is international trade?
Trade between regions within a country
Trade between different countries
Trade between provinces
Trade between cities
Which of the following is NOT a common reason for engaging in international trade?
To reach new markets
To reduce production costs
To avoid tariffs
To increase domestic competition
What is a tariff in international trade?
A limit on the quantity of imported goods
A tax on imported goods
A subsidy for exported goods
A trade agreement between countries
What does the term "dumping" refer to in international trade?
Discarding excess inventory in foreign markets
Selling goods abroad at a price lower than in the domestic market
Importing more goods than a country can consume
Exporting environmentally harmful products
Which organisation deals with the rules of trade between nations?
International Monetary Fund (IMF)
World Trade Organisation (WTO)
World Bank
United Nations (UN)
What is a "trade deficit"?
When a country's exports exceed its imports
When a country's imports exceed its exports
When a country has no international trade
When two countries have equal trade
What is a "free trade agreement" (FTA)?
An agreement to trade goods for free
A pact between countries to reduce or eliminate trade barriers
A contract to exclusively trade with one country
An agreement to trade only in local currencies
Which of the following is an example of a non-tariff barrier to trade?
Import duties
Safety standards
Export taxes
Customs fees
What does the term "comparative advantage" mean in international trade?
The ability to produce all goods more efficiently than other countries
The ability to produce a good at a lower opportunity cost than other countries
Having more natural resources than other countries
Having a larger workforce than other countries
What is meant by "foreign direct investment" (FDI)?
When a company from one country purchases government bonds from another country
When a company establishes business operations in a foreign country
When a country provides aid to another country
When individuals invest in foreign stock markets
