#1
Which of the following is an example of a tariff barrier in international trade?
Import duty
ExplanationTariff barrier involving a tax on imported goods.
#2
What is the purpose of an import quota?
To restrict the quantity of imports
ExplanationPolicy setting limits on the quantity of a specific good that can be imported.
#3
Which organization oversees international trade disputes and negotiations?
World Trade Organization (WTO)
ExplanationGlobal body managing trade issues, disputes, and negotiations.
#4
What is the term for a government payment to a domestic producer that lowers the cost of production?
Subsidy
ExplanationFinancial support by the government to reduce production costs for domestic producers.
#5
Which trade barrier involves setting a limit on the quantity of a good that can be imported in a given period?
Import quota
ExplanationRestriction on the amount of a specific good allowed to be imported within a specified timeframe.
#6
What is the term for a tax on goods that are traded internationally?
Tariff
ExplanationTax imposed on goods crossing international borders.
#7
Which trade agreement eliminated most tariffs on trade among its member countries?
EU
ExplanationEuropean Union promoting free trade by reducing tariffs among member nations.
#8
What is the Smoot-Hawley Tariff Act?
Legislation that imposed high tariffs during the Great Depression
ExplanationUS law raising import duties significantly during the Great Depression.
#9
What is the purpose of a trade embargo?
To restrict trade with a particular country
ExplanationPolicy prohibiting trade activities with a specific nation.
#10
Which trade policy aims to protect domestic industries from foreign competition by raising the cost of imported goods?
Tariff
ExplanationPolicy imposing taxes on imported goods to make them more expensive.
#11
Which of the following is NOT a motive for imposing trade barriers?
Promoting international cooperation
ExplanationUnlike other motives, this doesn't seek to limit international trade for protectionist reasons.
#12
Which international organization facilitates trade negotiations and provides a forum for resolving trade disputes?
World Trade Organization (WTO)
ExplanationGlobal body fostering trade talks and resolving conflicts between member countries.
#13
Which of the following is an example of a non-tariff barrier to trade?
Embargo
ExplanationBarrier restricting trade through a complete ban on specific goods or with a particular country.
#14
What is dumping in the context of international trade?
Exporting goods at a price below their production cost
ExplanationSelling goods in foreign markets at prices below their production costs.
#15
What is the term for an agreement between two or more countries to reduce or eliminate trade barriers among themselves?
Trade pact
ExplanationAgreement aiming to decrease or remove barriers to trade between participating nations.
#16
What is the term for the practice of selling goods in a foreign market at a price lower than their domestic market price or production cost?
Dumping
ExplanationSelling goods abroad at prices below domestic market rates or production costs.