International Trade and Globalization Quiz

International trade allows for diversification of resources and markets, reducing dependency on a single source and expanding economic opportunities.

GDP, or Gross Domestic Product, is a measure of the total value of goods and services produced within a country's borders, providing insight into its economic health and performance.

The World Bank provides financial assistance and loans to developing countries for various capital programs, supporting economic development and poverty reduction.

Commodity fetishism refers to placing excessive importance on the physical attributes of goods rather than considering their broader economic and social implications in international trade.

The concept of comparative advantage suggests that a country can benefit from producing a good even if it is less efficient than other countries, by focusing on goods in which it has a relative efficiency.

The World Trade Organization (WTO) is dedicated to promoting global trade by negotiating and reducing trade barriers, fostering cooperation among member nations.

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

Trade tariffs are imposed to discourage imports by making foreign goods more expensive, aiming to protect domestic industries from external competition.

FDI, or Foreign Direct Investment, refers to investments made by individuals, companies, or governments from one country into business interests located in another country, contributing to economic globalization.

Protectionism aims to shield domestic industries from foreign competition by imposing tariffs, quotas, or other trade barriers.

The comparative advantage theory argues that a country should focus on producing goods and services in which it is relatively more efficient compared to other nations, promoting specialization.

NAFTA, the North American Free Trade Agreement, aimed to eliminate trade barriers among the United States, Canada, and Mexico, fostering economic cooperation.

Dumping refers to the practice of selling goods and services in international markets at prices lower than those charged in the domestic market, potentially disrupting fair competition.

The New Trade Theory suggests that countries should specialize in producing goods they can efficiently manufacture, emphasizing economies of scale and product differentiation.

A trade embargo is imposed to restrict or entirely halt trade with a specific country, often due to political reasons or to express disapproval of its actions.