#1
Which of the following is an example of a trade barrier?
Subsidies
Free trade agreements
Comparative advantage
Trade surplus
#2
What does 'GATT' stand for in the context of international trade?
Global Agreement on Trade and Tariffs
General Agreement on Tariffs and Trade
General Agreement on Trade and Taxes
Global Association for Trade and Taxes
#3
What is the term for a situation where a country exports more than it imports?
Trade deficit
Trade surplus
Balance of payments
Current account deficit
#4
What is the effect of a trade deficit on a country's currency?
It strengthens the currency
It weakens the currency
It has no effect on the currency
It stabilizes the currency
#5
What is a 'trade surplus'?
When a country imports more than it exports
When a country exports more than it imports
When a country has a balance between exports and imports
When a country imposes tariffs on imports
#6
What is the purpose of trade agreements?
To increase trade barriers
To discourage exports
To establish rules for international trade
To promote isolationism
#7
Which of the following is an argument used to justify protectionism?
Promoting international cooperation
Enhancing consumer choice
Protecting domestic industries
Lowering unemployment
#8
What is the main objective of tariffs in international trade?
To encourage exports
To discourage imports
To stabilize exchange rates
To promote economic growth
#9
What is the 'Most Favored Nation' principle in international trade?
Granting special trade privileges to a specific nation
Applying the lowest tariff rate to all trading partners
Imposing tariffs on selected goods
Favoring domestic producers over foreign competitors
#10
Which international organization oversees the World Trade Organization (WTO) agreements?
World Bank
International Monetary Fund (IMF)
World Trade Organization (WTO)
Organization for Economic Cooperation and Development (OECD)
#11
What is the main purpose of non-tariff barriers in international trade?
To increase government revenue
To regulate the quality of imported goods
To promote free trade
To simplify customs procedures
#12
What is dumping in the context of international trade?
Selling goods in foreign markets at a price below production cost
Trading goods without tariffs
Establishing trade barriers
Investing in foreign markets
#13
Which of the following is NOT a trade barrier?
Quotas
Embargoes
Comparative advantage
Tariffs
#14
Which trade theory argues that a country should specialize in producing goods for which it has an absolute advantage?
Comparative advantage theory
Mercantilism
Heckscher-Ohlin theory
Absolute advantage theory
#15
What is the Smoot-Hawley Tariff Act known for?
Reducing trade barriers
Increasing trade liberalization
Imposing high tariffs during the Great Depression
Promoting free trade agreements
#16
Which trade theory suggests that factors such as labor, capital, and technology influence a country's comparative advantage?
Absolute advantage theory
Mercantilism
Comparative advantage theory
Heckscher-Ohlin theory