#1
Which organization is responsible for regulating international trade and ensuring trade rules are followed?
World Trade Organization (WTO)
ExplanationWTO regulates international trade and enforces trade rules.
#2
What is the term used to describe a situation where a country exports more goods than it imports?
Trade surplus
ExplanationTrade surplus occurs when a country exports more than it imports.
#3
Which of the following trade agreements involves the United States, Canada, and Mexico?
North American Free Trade Agreement (NAFTA)
ExplanationNAFTA involves trade among the United States, Canada, and Mexico.
#4
What is the primary purpose of a trade embargo?
To restrict the flow of certain goods and services to or from a specific country
ExplanationTrade embargo limits goods and services flow to/from a specific country.
#5
Which country is known for its 'One Belt, One Road' initiative, aiming to enhance international trade and connectivity?
China
ExplanationChina's 'One Belt, One Road' initiative promotes international trade and connectivity.
#6
Which economic theory argues that a country should specialize in the production of goods in which it has a comparative advantage?
Comparative advantage
ExplanationComparative advantage theory advocates specializing in areas of comparative strength.
#7
What is the primary goal of protectionist trade policies?
To shield domestic industries from foreign competition
ExplanationProtectionist policies aim to protect domestic industries from foreign competition.
#8
Which economic policy advocates for minimal government intervention in the economy and supports free market principles?
Laissez-faire
ExplanationLaissez-faire supports minimal government intervention and free markets.
#9
What is the term used to describe an artificially low currency value to gain a competitive advantage in international trade?
Currency manipulation
ExplanationCurrency manipulation involves artificially lowering currency value for trade advantage.
#10
Which trade policy involves reducing or eliminating trade barriers between a group of countries, allowing for the free movement of goods and services?
Free trade agreement (FTA)
ExplanationFTA involves reducing or eliminating trade barriers for free movement of goods and services.
#11
In the context of international trade, what does the term 'dumping' refer to?
Exporting goods at a price lower than their production cost
ExplanationDumping is selling goods abroad at a price below production cost.
#12
In the context of international trade, what does the term 'FTA' stand for?
Free Trade Area
ExplanationFTA stands for Free Trade Area in international trade.
#13
Which economic concept argues that a country's overall well-being is best measured by the sum of all individuals' well-being within that country?
Human Development Index (HDI)
ExplanationHDI measures a country's well-being by the sum of individuals' well-being.
#14
In the context of international trade, what does the term 'deglobalization' refer to?
Reduction in international trade and economic interconnectedness
ExplanationDeglobalization refers to a reduction in international trade and economic interconnectedness.