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International Trade and Business Partnerships Quiz

#1

Which of the following is a trade agreement among Canada, Mexico, and the United States?

NAFTA
Explanation

North American Free Trade Agreement

#2

What does FTA stand for in the context of international trade?

Free Trade Agreement
Explanation

Free Trade Agreement

#3

Which term refers to a tax imposed on imported goods and services?

Tariff
Explanation

Tariff

#4

Which of the following is a trade barrier that restricts the quantity of a good that can be imported?

Quota
Explanation

Quota

#5

Which term describes a situation where a country sells more goods and services to other countries than it buys from them?

Trade surplus
Explanation

Trade surplus

#6

Which organization sets the rules for international trade and resolves disputes between its member countries?

WTO
Explanation

World Trade Organization

#7

What is the economic theory that suggests countries should specialize in the production of goods and services they can produce most efficiently?

Comparative advantage
Explanation

Comparative advantage

#8

Which international organization aims to promote economic cooperation and development among its member countries?

OECD
Explanation

Organization for Economic Cooperation and Development

#9

What is the name of the principle that states a country should not produce a good if another country can produce it more efficiently?

Principle of absolute advantage
Explanation

Principle of absolute advantage

#10

In international trade, what does the acronym GATT stand for?

General Agreement on Tariffs and Trade
Explanation

General Agreement on Tariffs and Trade

#11

Which term refers to the total value of a country's exports minus the total value of its imports?

Trade surplus
Explanation

Trade surplus

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