International Trade and Global Business Relations Quiz

Language barriers are not typically considered significant impediments to international trade compared to issues like tariffs or regulations.

The WTO, or World Trade Organization, plays a key role in setting trade rules and arbitrating disputes between member countries.

NAFTA, the North American Free Trade Agreement, encompasses trade between the United States, Mexico, and Canada, aiming to eliminate tariffs and facilitate trade.

Protectionism seeks to shield domestic industries from foreign competition through measures like tariffs, quotas, or subsidies.

Globalization has led to decreased barriers to trade and investment, facilitating the flow of goods, services, and capital across borders.

The IMF, or International Monetary Fund, works to ensure financial stability globally and provides assistance to countries facing economic crises.

FDI refers to investment in a business by an entity from another country, involving substantial control and long-term influence.

According to Comparative Advantage Theory, countries should focus on producing goods and services where they have a relative efficiency or advantage.

Heckscher-Ohlin Theory argues that countries should specialize in goods that intensively use the factors of production they have in abundance.

The balance of trade measures the difference between the value of a country's exports and imports of goods and services over a certain period.

The primary goal of the WTO is to foster free and fair trade by establishing rules, resolving disputes, and promoting negotiation among member nations.

A trade surplus occurs when the value of a country's exports exceeds the value of its imports, resulting in a positive balance of trade.

Dumping involves selling goods in foreign markets at prices below the domestic market, potentially leading to market distortions and unfair competition.

Import quotas are restrictions on the quantity of goods that can be imported into a country, serving as a non-tariff barrier to trade.

Trade liberalization aims to decrease or remove barriers such as tariffs, quotas, and regulations to promote freer exchange of goods and services between nations.

The Kyoto Protocol is an international agreement aimed at reducing greenhouse gas emissions and addressing climate change, with implications for international trade.

The IMF provides financial assistance and policy advice to countries facing balance of payments difficulties, aiming to stabilize their economies and foster growth.