WorksheetsIBT PRELIM REVIEWER
Total questions: 132
Worksheet time: 1hrs 6mins
Business activities that occur only within a single country
Trade and investment activities by firms across national borders
Government policies that regulate local businesses
Domestic businesses expanding to rural areas
Comparative Advantage
Mercantilism
Absolute Advantage
Free Trade
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
United Nations (UN)
Mercantilism
Division of Labor
Comparative Advantage
Absolute Advantage
Japan
China
Germany
Russia
NAFTA
ASEAN Free Trade Area (AFTA)
European Union (EU)
MERCOSUR
Free Trade
Protectionism
Capitalism
Deregulation
International trade is most stable when there is no dominant power
A single dominant country maintains global economic stability
All countries should have equal economic power
Trade agreements should be voluntary and unenforced
The process of decreasing economic and cultural exchanges between nations
The increasing interconnection of economies, cultures, and policies worldwide
The economic policy of isolationism and self-sufficiency
The regulation of trade through strict government control
France
Spain
United Kingdom
United States
Strict trade restrictions
Strong manufacturing and export-oriented policies
Decreasing foreign investments
Limited technological advancements
Philippines
India
China
Myanmar
They reduce economic activity
They promote industrial growth and job creation
They limit trade relationships with Western countries
They decrease technological advancements
Improve global infrastructure and trade networks
Reduce its dependence on international trade
Close its economy to foreign businesses
Halt globalization
Thailand
Indonesia
South Korea
Bangladesh
Military alliances among Asian countries
Economic cooperation and regional trade agreements
Trade restrictions between Asian nations
Currency unification
A decline in manufacturing industries
Political instability and trade tensions
Lack of technological progress
Weak international trade policies
The UK wanted to expand EU integration
Concerns over sovereignty and immigration policies
A stronger currency trade agreement with Europe
An economic alliance with the United States
Increased ease of trading with the EU
Simplified cross-border labor movement
Supply chain disruptions and regulatory challenges
Strengthened the UK’s financial sector
More relaxed immigration policies
Increased tariffs and trade barriers with the EU
Greater financial incentives from the EU
The introduction of a single European currency
The UK immediately rejoined the EU trade system
Regulations and trade agreements with the EU had to be renegotiated
The EU imposed a global trade ban on the UK
Brexit had no impact on trade relations
Finance
Agriculture and food processing
Online streaming services
IT and software development
The ability to negotiate independent trade agreements
Increased market access to European businesses
Elimination of all import costs
Stronger currency stability
Greater control over EU banking policies
Loss of "passporting" rights to offer financial services in the EU
No impact on the stock market
Increased access to EU financial institutions
The UK re-entering the EU immediately
Strengthened trade ties between the UK and EU
Reduced foreign direct investment in the UK
Complete elimination of trade agreements
To increase government control over businesses
To take advantage of comparative advantage and resource allocation
To limit market competition
To decrease the variety of goods available
Import tariffs
Domestic banking regulations
Minimum wage laws
Environmental protection laws
A restriction on the amount of goods that can be imported
A tax imposed on imported goods
A ban on certain foreign products
A government subsidy for exporters
Eliminate all government control over trade
Reduce or eliminate trade barriers among member countries
Increase tariffs on imported goods
Prevent any kind of international trade
World Health Organization (WHO)
United Nations (UN)
World Trade Organization (WTO)
International Monetary Fund (IMF)
A tax imposed on exports
A restriction on the quantity of goods that can be imported
A government payment to local producers
A fee paid for shipping goods internationally
Import quota
Export tax
Import duty
Trade surplus
It exports more than it imports
It imports more than it exports
It has no trade relations
It only engages in domestic trade
Selling products abroad at below domestic prices or production costs
The disposal of excess inventory
Importing goods at a higher price than domestic alternatives
The excessive taxation of foreign businesses
Increased employee benefits
Foreign exchange fluctuations
Reduced product quality
Excessive domestic competition
The total value of a country’s imports and exports
The relationship between exports and imports
The number of businesses operating internationally
The strength of a country’s currency
Regulating local banking policies
Providing loans for domestic businesses
Converting currencies for international trade transaction
Controlling inflation rates
A company licensing its brand to a foreign firm
A company purchasing stock in an international company
A business setting up manufacturing operations in another country
An individual sending money overseas
Guarantee that a buyer’s payment will be received
Offer tax incentives for exporters
Limit the risk of currency fluctuations
Increase the cost of foreign trade
Trade quotas
Exchange rate fluctuations
Terms of payment and delivery
Immigration policies
The General Agreement on Tariffs and Trade (GATT) was established in 1947 to promote trade liberalization.
FALSE
Mercantilism promotes free trade and open markets without government intervention.
TRUE
A trade surplus occurs when a country imports more goods than it exports.
TRUE
The World Trade Organization (WTO) resolves trade disputes between member nations.
FALSE
The principle of Most-Favored Nation (MFN) ensures that trade advantages given to one country must be given to all WTO members.
FALSE
Asia's economic growth is primarily driven by domestic consumption alone.
TRUE
ASEAN is an economic and political organization that promotes trade between its member countries.
FALSE
Brexit led to immediate and stable trade relations between the UK and EU.
TRUE
Asia's economic rise has no impact on global markets.
TRUE
Brexit increased trade barriers between the UK and the EU.
FALSE
The UK can now independently negotiate its own trade deals post-Brexit.
FALSE
The Asian market is attractive to foreign investors due to its large labor force and growing consumer base.
FALSE
The Brexit deal resolved all trade-related challenges between the UK and the EU.
TRUE
China's Belt and Road Initiative aims to strengthen global trade and infrastructure.
FALSE
Brexit has had no impact on UK businesses operating in the EU.
TRUE
The WTO encourages protectionist trade policies.
TRUE
Non-tariff barriers include import quotas and product safety standards.
FALSE
A trade deficit occurs when a country exports more than it imports.
TRUE
The Foreign Exchange Market helps businesses convert one currency into another.
FALSE
A letter of credit reduces payment risk in international business transactions.
FALSE
Incoterms define the responsibilities of buyers and sellers in international trade contracts.
FALSE
A multinational corporation (MNC) operates only within its home country.
TRUE
Foreign Direct Investment (FDI) involves direct ownership or control of assets in another country.
FALSE
Trade liberalization refers to increasing trade barriers and restrictions.
TRUE
The balance of payments includes trade balance, financial transactions, and capital flow.
FALSE
Asia is an ancient land, and one of its oldest civilizations, India had a long history of a struggling economy ever since the end of the British rule 70 years ago.
FALSE
Statistics drawn from India’s 2020 population indicate a high growth rate that could overtake that of China but even with the high population.
FALSE
A focus on India’s GDP based on the purchasing power parity indicates that the country’s rate of inflation is high and the global poverty threshold is high.
TRUE
David Ricardo in his comparative advantage theory argued that even when a country has an absolute advantage over the other, they still need each other to help boost the economy of both countries.
FALSE
Classical Country-Based Theories: Mercantilism, Absolute Advantage, Comparative Advantage, Heckscher-Ohlin
FALSE
Modern Firm-Based Theories: Country Similarity, Product Life Cycle, Global Strategic Rivalry, Porter’s National Competitive Advantage.
FALSE
Based on the research and study of Asian Development Bank, the Asian growth will achieve nearly 40% of global output by 2030.
TRUE
FALSE
According to the Asian Development Bank, 5.6% growth per annum over the next 2 decades for Asian Growth.
FALSE
Asia’s growing middle class, over half of world’s middle class will be in Asia, by 6.2 billion in year 2030.
TRUE
Country-based trade theories mercantilism: this theory stated that a country’s wealth was determined by the amount of its gold and silver holdings.
FALSE
Free-trade advocates highlight how free trade benefits all members of the global community, while mercantilism’s protectionist policies only benefit select industries, at the expense of both consumers and other companies, within and outside of the industry.
FALSE
Absolute advantage: In 1776, Adam Smith questioned the leading mercantile theory of the time in The Wealth of Nations.
FALSE
Smith offered a new trade theory called absolute advantage, which focused on the ability of a country to produce a good more efficiently than another nation.
FALSE
Smith reasoned that trade between countries shouldn’t be regulated or restricted by government policy or intervention.
FALSE
Comparative Advantage: the main difference to the absolute advantage theory was that some countries may be better at producing both goods and, therefore, have an advantage in many areas.
TRUE
Comparative advantage occurs when a country cannot produce a product more efficiently than the other country; however, it can produce that product better or more efficiently than it does any other good.
FALSE
Heckscher-Ohlin Theory: the theories of Smith and Ricardo didn’t help countries determine which products would give a country an advantage.
FALSE
In the early 1900s, two Swedish economists, Eli Heckscher and Bertil Ohlin, focused their attention on how a country could gain comparative advantage by producing products that utilized factors that were in abundance in the country.
FALSE
Modern Firm-Based Trade Theories: this theory emerged after World War II and was developed in large part by business school professors, not economists.
FALSE
Swedish economist Steffan Linder developed the country similarity theory in 1961, as he tried to explain the concept of intra-industry trade.
FALSE
Seven hundred generations ago, in (a) there have been 600,000 polities on Earth, each consisting of ten or hundreds of individuals. Today, there are 200 nations, consisting of millions of people.
From (a) European countries depended on international trade as the revenue.
According to (a) idea, the preference to export than import is not just as far as to earn precious metals, but it's also for building up the industries and strengthened the economy.
(a) is an economic policy designed to increase a nation's wealth through exports, which thrived in Great Britain between the 16th and 18th centuries.
The country enjoyed the greatest benefits of (a) between 1640 and 1660 when the prevailing economic wisdom suggested that the empire's colonies could supply raw materials and resources to the mother country subsequently be used as export markets for the finished products.
(a) exists to increase a country's wealth through its exports.
British (a) was propelled by raw materials supplied by its colonies so the nation could export finished products.
(a) brought about many acts against humanity, including slavery and an imbalanced system of trade.
During Great Britain's mercantilist period, colonies faces periods of (a) and excessive taxation, which caused great distress.
Angry and frustrated American (a) revolted against the British, which led to the to the American Revolution and the end of mercantilism.
(a) led to the adoption of enormous trade restrictions, which stunted the growth and freedom of colonial business.
In Wealth of Nations, the father of modern economics Adam Smith argued that free trade promotes a flourishing economy – not (a) .
The British government demanded the trade of gold and silver (a) and was always seeking a positive balance of trade.
Britain used (a) as a way to secure its interests in the New World.
The term of (a) didn't exist until 1763 by Victor de Riquete, Marquis de Mirabeau, and as popularized by Adam Smith in his book The Wealth of Nations.
The General Agreement on (a) signed in 1947 by 23 countries, is a treaty minimizing barriers to international trade by eliminating or reducing quotas, tariffs, and subsidies.
(a) was expanded and refined over the years, leading to the creation in 1995 of the World Trade Organization, which absorbed the organization created to implement GATT.
The Council for Trade in Goods (a) is now responsible for the GATT and consists of representatives from all WTO member countries.
(a) is about the material capacities of particular states, and through this material (military and economic) power their dominance and lea
(a) emerged as an analytical term to conceptualize different historical periods out of the combined post-1945 historical context of two key.
Problem 1: Currency Exchange
A Filipino exporter sells goods worth $10,000 to a U.S. company. The current exchange rate is ₱56 per $1 USD.
Question: How much will the exporter receive in Philippine pesos?
Problem 2: Balance of Trade Calculation
The Philippines exported ₱5,000,000,000 worth of goods and imported ₱7,000,000,000 worth of goods in a given year.
Question: What is the trade balance, and does the country have a trade surplus or deficit?
Solution:
