Global Economic Policies and International Trade Quiz

The WTO sets rules for global trade and resolves disputes between member countries.

Tariffs are used to make imported goods more expensive, encouraging consumers to buy domestic products.

FTAs eliminate or reduce tariffs and other barriers to trade between participating countries.

The IMF provides loans and financial assistance to member countries experiencing balance of payments difficulties.

The theory of comparative advantage suggests that countries should specialize in producing goods in which they have a lower opportunity cost.

A trade deficit occurs when a country's imports exceed its exports.

Under this principle, a country extends to another country the same trade advantages it offers to any other country.

Dumping is the practice of selling goods in a foreign market at a price lower than their production cost.

Quotas restrict the quantity of goods that can be imported.

The WEF brings together leaders from around the world to discuss and address economic challenges.

GATT aims to promote international trade by reducing tariffs and other barriers.

Comparative advantage theory suggests that countries should specialize in producing goods in which they have a lower opportunity cost.

Regional trade agreements include agreements like NAFTA, ASEAN, and the EU.

The SDGs aim to reduce poverty, inequality, and other global challenges.

Keynesian economics suggests that government intervention can stabilize the economy, including through trade policies.