International Trade and Economic Relationships Quiz

The WTO facilitates negotiations and enforces rules governing international trade.

GDP represents the total monetary value of goods and services produced within a country's borders in a specific time period.

The WTO Agreement established the World Trade Organization, replacing GATT, to oversee international trade rules and negotiations.

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

Free trade agreements are designed to reduce trade barriers, not create them.

A free trade agreement aims to reduce or eliminate trade barriers, such as tariffs and quotas, between participating countries.

Saudi Arabia benefits from its abundant oil reserves, giving it a comparative advantage in oil production.

Customs duty is a tariff or tax imposed on goods when transported across international borders.

The trade account is indeed a component of the balance of payments, including the current account, capital account, and financial account.

Dumping refers to the practice of selling goods in foreign markets at a price lower than in the domestic market, often to gain a competitive advantage.

The IMF publishes the World Economic Outlook report, providing analysis and forecasts of global economic trends.

A fixed exchange rate system involves a country pegging its currency to the value of another currency or a basket of currencies, maintaining a consistent exchange rate.

Comparative advantage theory states that countries should specialize in producing goods where they have the lowest opportunity cost.

New trade theory suggests that economies of scale and product differentiation play a crucial role in international trade, alongside comparative advantage.

Brazil is not a member of NAFTA or its successor, the USMCA.

The Heckscher-Ohlin theory suggests that countries specialize in producing goods that utilize their abundant factors of production, leading to comparative advantage.

The Paris Agreement is an international treaty designed to address climate change by limiting global warming and reducing greenhouse gas emissions through international cooperation and commitments.