WorksheetsCh 17 Quiz Resources for Global Trade
Total questions: 15
Worksheet time: 8mins
What is the best explanation for why countries trade with each other?
to influence the political situation in another country
to create multinational corporations
to exchange the items each produces more efficiently
to provide fresh foods for their citizens
To determine a country’s specialization, look at its ____________________________.
imports
exports
real GDP
net national product
If Country A can produce computers more efficiently than can Country B, Country A has a(n) ____________________________.
comparative advantage
opportunity cost
absolute advantage
trade surplus
Although Country C can produce more cashews than Country D, Country D can produce cashews with relatively greater efficiency. What kind of advantage does Country D have over Country C?
cost
absolute
opportunity
comparative
What is a non-production benefit of international trade?
political cooperation
greater world output
multinational corporations
automation of the workforce
International trade helps a country’s economy by providing two sources of economic growth, which are ____________________________.
access to necessary inputs and bigger markets
bigger markets and more jobs
more jobs and larger incomes
larger incomes and access to necessary inputs
What type of restriction does a country place on international trade when it charges a high tax on an import from another country to help a competing domestic industry thrive?
quota
embargo
revenue tariff
protective tariff
People are often willing to support restrictions that protect infant industries on the condition that these protections are (a) .
implemented to support national defense
enforced only during periods of international conflict
eventually removed, forcing the industries to compete
accompanied by other protections that produce revenue
What is the most frequently used argument for placing restrictions on international trade?
keeping money at home
protecting domestic jobs
supporting national pride
helping the balance of payments
The term foreign exchange refers to
international trade
the different currencies used in international trade
a location where international trade deals are negotiated
a multinational stock market
The price of one country’s currency in terms of another currency is the _________________________________.
balance of payments
opportunity cost
foreign exchange rate
trade-weighted value
In 2013, the value of the Canadian dollar was 1.0602 per U.S. dollar. How many Canadian dollars would you have had to exchange in 2013 to buy a U.S. product that cost $100 U.S. dollars?
$9.43 CAD
$10.60 CAD
$94.32 CAD
$106.02 CAD
What is true about a flexible exchange rate?
It allows countries to redeem foreign currencies for gold.
It determines a currency’s value based on the gold standard.
It requires no service charge when currencies are exchanged.
It determines a currency’s value based on supply and demand.
What does a country experience when the value of its imports exceeds the value of its exports?
a trade deficit
a trade surplus
a floating exchange
a trade-weighted value
What happens when the international value of the U.S. dollar is strong?
Foreigners sell their currency to buy more American dollars.
U.S. exports become more expensive for the rest of the world.
Foreign goods become less expensive for American consumers.
Employment in export-oriented industries grows.
