WorksheetsTopic 5 The global trading environment
Total questions: 15
Worksheet time: 8mins
What is the primary focus of international trade?
Trade patterns
Trade restrictions
Trade in goods
Trade in services
Which of the following is NOT a method of restricting trade?
Free trade agreements
Quotas
Subsidies
Tariffs
What does the law of comparative advantage explain?
Trade restrictions
Market monopolies
Gains from trade
Absolute advantage
Which term refers to the average price of exports divided by the average price of imports?
Terms of trade
Comparative advantage
Trade volume
Trade barriers
What is one argument for restricting trade?
Increased competition
Infant industry argument
Specialization
Globalization
What is a potential problem with protectionist policies?
Deadweight loss
Lower tariffs
Higher trade volumes
Increased consumer surplus
Which organization succeeded GATT to promote international trade?
WTO
OECD
IMF
World Bank
What is a characteristic of the World Trade Organization (WTO)?
Non-discrimination principle
Imposition of quotas
Tariff-free trade
Monopoly power
What is the effect of tariffs on consumer surplus?
Decrease
Increase
Double
No effect
Which of the following is a reason for gains from trade?
Trade barriers
Market monopolies
Increased tariffs
Decreasing costs
What does the term 'deadweight loss' refer to in the context of trade?
Increase in trade volume
Loss of consumer surplus
Gains from trade
Market efficiency
What is the significance of the year 1945 in international trade?
End of tariffs
Formation of WTO
Start of GATT
Beginning of globalization
Which of the following is a characteristic of regional trading patterns?
Uniform tariffs
Major exporters and importers
Local trade restrictions
Global trade agreements
What does the term 'monopsony power' refer to?
Market power with imports
Consumer surplus
Market power with exports
Trade barriers
What is one of the attitudes of the WTO?
Restricting trade
Encouraging monopolies
Imposing tariffs
Promoting fair competition
