#1
Which organization regulates international trade rules and agreements?
United Nations (UN)
World Trade Organization (WTO)
International Monetary Fund (IMF)
World Bank
#2
What does the term 'trade deficit' mean?
When a country's imports exceed its exports
When a country's exports exceed its imports
When a country's imports equal its exports
When a country's trade is balanced
#3
Which international organization provides financial assistance to countries facing balance of payments problems?
International Monetary Fund (IMF)
World Bank
World Trade Organization (WTO)
United Nations (UN)
#4
What is the purpose of a tariff?
To encourage international trade
To discourage imports and protect domestic industries
To stabilize currency exchange rates
To promote foreign direct investment
#5
What does the term 'FTA' stand for in the context of international trade?
Free Trade Agreement
Foreign Trade Association
Federal Trade Act
Financial Transaction Agreement
#6
What is the primary objective of the World Trade Organization (WTO)?
To provide financial assistance to developing countries
To promote free trade and resolve trade disputes
To regulate international currency exchange rates
To provide humanitarian aid
#7
Which theory suggests that a country should specialize in producing goods it can produce most efficiently and trade them for goods it is less efficient at producing?
Mercantilism
Comparative advantage
Absolute advantage
Balanced trade
#8
What does the term 'balance of trade' refer to?
The total value of a country's imports and exports
The difference between a country's exports and imports
The ratio of exports to GDP
The amount of trade surplus a country has
#9
Which of the following is NOT a barrier to international trade?
Tariffs
Embargoes
Subsidies
Comparative advantage
#10
Which of the following is a primary objective of trade protectionism?
Promoting global economic growth
Maximizing consumer choices
Protecting domestic industries
Encouraging free trade agreements
#11
What is the name of the agreement that created a free trade area among the United States, Mexico, and Canada?
North American Free Trade Agreement (NAFTA)
Trans-Pacific Partnership (TPP)
European Union (EU)
South Asian Free Trade Area (SAFTA)
#12
Which economic theory argues that a country should strive to maintain a positive balance of trade to accumulate wealth?
Absolute advantage
Comparative advantage
Mercantilism
Free trade
#13
What is 'dumping' in the context of international trade?
Selling goods in another country at a price below their production cost
Exporting goods without paying tariffs
Increasing imports to stimulate domestic production
Exchanging goods without using currency
#14
Which term refers to a situation where a country imposes trade restrictions on another country in retaliation for trade barriers imposed by the second country?
Bilateral trade agreement
Trade embargo
Countertrade
Trade war
#15
Which international trade theory emphasizes the role of economies of scale and transportation costs in determining patterns of international trade?
Absolute advantage
Comparative advantage
Heckscher-Ohlin theory
New trade theory