International Trade and Economic Concepts Quiz

Import quota is a restriction on the quantity of a good that can be imported, acting as a trade barrier.

GDP, or Gross Domestic Product, represents the total value of goods and services produced within a country in a given period.

A trade deficit occurs when a country's exports are less than its imports, resulting in a negative balance.

The primary function of the World Trade Organization (WTO) is to set international trade rules and facilitate the resolution of disputes among member countries.

Increased job opportunities in domestic industries is NOT a potential benefit of international trade.

Absolute advantage theory proposes that a country should focus on producing goods it can produce with the highest efficiency.

A trade surplus occurs when a country exports more goods and services than it imports, resulting in a positive balance.

Tariffs in international trade are primarily imposed to generate government revenue by taxing imported goods.

Comparative advantage theory advocates for a country specializing in goods with lower opportunity costs compared to other nations.

FDI, or Foreign Direct Investment, refers to investments made by a country's residents into foreign assets.

The World Trade Organization (WTO) establishes rules for global trade and facilitates dispute resolution among member countries.

Dumping involves selling goods in foreign markets at prices below their production costs, potentially harming domestic industries.

Currency manipulation involves deliberately devaluing a country's currency to make its exports more competitive and imports more expensive.

The International Monetary Fund (IMF) provides loans to countries facing balance-of-payments problems to stabilize their economies.