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WorksheetsCh8 - International Business
Total questions: 40
Worksheet time: 20mins
What is international trade?
Exchange of goods and services within a country
Exchange of goods and services between countries
Exchange of goods only
Exchange of services only
Which of the following is an example of a closed economy?
United States
North Korea
Germany
Ireland
What is free trade?
Trade with quotas
Trade with no restrictions or barriers
Trade with embargoes
Trade with high tariffs
What is a trading bloc?
A group of countries with high tariffs
A group of countries with trade barriers
A group of countries with no trade barriers between each other
A single country with internal trade barriers
Which of the following is NOT a trading bloc?
EU
NAFTA
CPTPP
RCEP
What is the European single market policy?
A policy that imposes quotas on EU member states
A policy that restricts movement of people within the EU
A policy that eliminates barriers to trade between EU member states
A policy that increases tariffs between EU member states
What is the purpose of common external tariffs in the EU?
To increase trade within the EU
To reduce tariffs on goods imported from outside the EU
To impose barriers on goods imported from outside the EU
To eliminate trade barriers within the EU
Which countries are part of the RCEP agreement?
ASEAN member states and six other countries
Only North American countries
Only ASEAN member states
Only European countries
What is a key feature of the CPTPP?
Eliminating all trade
Increasing taxes on trade
Reducing taxes on trade
Increasing trade barriers
How has Ireland benefited from EU membership in terms of infrastructure?
Lack of modern roads
Increased mobile phone charges
Improved roads and communication links
Decreased broadband access
What is a tariff?
A tax on the value of imported goods
A subsidy for domestic goods
A quota on exported goods
A ban on imported goods
What is a quota in international trade?
A tax on imported goods
A ban on exported goods
A physical limit on the number of units of a good that may be imported/exported
A subsidy for domestic goods
What is an embargo?
A tax on imported goods
A ban preventing the import or export of specified goods
A subsidy for domestic goods
A quota on exported goods
What is the purpose of subsidies in international trade?
To ban the export of goods
To increase the cost of domestic goods
To impose tariffs on imported goods
To help firms cover operating costs and keep prices competitive
How do exchange rates affect international trade?
They have no effect on trade
They only affect services
They directly affect the costs of goods and services
They only affect domestic trade
Why do Irish businesses trade globally?
To avoid competition
To access natural resources not available in Ireland
To reduce sales
To increase domestic market size
What is the balance of trade?
The total value of exports
The total value of imports
The difference between invisible exports and invisible imports
The difference between all visible exports and visible imports
What is visible trade?
Only exporting services
Importing and exporting goods
Importing and exporting services
Only importing goods
What is invisible trade?
Only importing goods
Only exporting goods
Importing and exporting goods
Importing and exporting services
What is the balance of payments?
The difference between total imports and total exports
The difference between visible exports and visible imports
The total value of imports
The total value of exports
What is a surplus in the balance of trade?
More money is leaving the country than is coming in
The country has equal imports and exports
More money is coming into the country than is leaving it
The country has no trade
What is a deficit in the balance of trade?
More money is coming into the country than is leaving it
More money is leaving the country than is coming in
The country has no trade
The country has equal imports and exports
How can a country reduce a deficit in their balance of payments?
Increase imports
Increase exports
Decrease exports
Increase taxes
What is the impact of a high cost base on Irish businesses?
It reduces their market size
It has no impact
It makes them less competitive
It makes them more competitive
Why is knowledge of foreign languages important for international trade?
To eliminate competition
To reduce production costs
To sell successfully to foreign customers
To increase domestic sales
What is the role of government assistance in international trade?
To increase the risk for transnational corporations
To reduce risk and cost for transnational corporations
To increase tariffs
To eliminate all trade barriers
What is the significance of the euro for Irish businesses?
It has no impact on trade
It makes trading easy and stable
It increases exchange rate fluctuations
It makes trading difficult
How does the EU's environmental directives benefit Irish businesses?
By positioning them to benefit from renewable energy
By eliminating competition
By increasing production costs
By reducing their market size
What is the impact of cultural differences on international trade?
They eliminate competition
They have no impact
They can result in lost sales
They increase production costs
What is the impact of the single currency on foreign investors in Ireland?
It gives an incentive for investment
It increases investment costs
It has no impact
It discourages investment
What is the role of the IDA and Enterprise Ireland?
To increase tariffs
To help boost trade
To increase trade barriers
To eliminate all trade
What is the impact of a larger market on Irish businesses?
It enables economies of scale
It eliminates competition
It reduces sales
It increases production costs
What is the impact of mobile phone roaming charges reduction in the EU?
It has no impact
It reduces costs for consumers
It increases competition
It increases costs for consumers
What is the impact of the EU's single administrative document?
It increases trade barriers
It has no impact
It eliminates a vast number of administrative forms
It increases administrative forms
What is the impact of the EU's public procurement policy?
It increases trade barriers
It restricts public contracts to domestic firms
It allows firms throughout the EU to tender for public contracts
It eliminates public contracts
What is the impact of the EU's free movement of people policy?
It eliminates movement between member states
It allows European citizens to move freely between member states
It increases trade barriers
It restricts movement between member states
What is the impact of the EU's free movement of capital policy?
It eliminates movement of capital
It allows firms to move capital from one country to another
It increases trade barriers
It restricts movement of capital between member states
What is the impact of the EU's single market on prices?
It has no impact on prices
It leads to more competitive prices
It eliminates competition
It increases prices
What is the impact of the EU's single market on raw materials?
It eliminates raw materials
It provides more competitively priced raw materials
It increases the cost of raw materials
It has no impact on raw materials
What is the impact of the EU's single market on the pool of workers?
It reduces the pool of workers
It provides a larger pool of workers
It eliminates the pool of workers
It has no impact on the pool of workers
