#1
Which of the following is an example of a trade barrier?
Tariffs
Comparative advantage
Free trade agreement
Specialization
#2
What is the main purpose of the World Trade Organization (WTO)?
To promote environmental sustainability
To regulate international currency exchange rates
To facilitate international trade negotiations
To provide humanitarian aid
#3
What does the term 'trade deficit' mean?
When a country exports more goods than it imports
When a country's imports exceed its exports
When a country's exports are equal to its imports
When a country's currency is stronger than others
#4
Which organization is responsible for setting international standards for goods and services?
International Monetary Fund (IMF)
World Bank
International Organization for Standardization (ISO)
United Nations (UN)
#5
What is the 'Smoot-Hawley Tariff'?
A tariff imposed by the European Union
A tariff imposed by China
A tariff imposed by the United States during the Great Depression
A tariff imposed by Japan
#6
Which theory suggests that a country should specialize in producing goods and services it can produce most efficiently?
Mercantilism
Protectionism
Comparative advantage
Balanced trade
#7
What is the 'balance of trade'?
The total value of imports minus the total value of exports
The difference between a country's savings and investment
The ratio of a country's debt to its GDP
The total value of exports minus the total value of imports
#8
What is the primary goal of import substitution industrialization (ISI)?
To promote foreign direct investment (FDI)
To increase reliance on imported goods
To reduce dependence on foreign imports by producing goods domestically
To encourage free trade agreements
#9
What is 'trade liberalization'?
The process of imposing trade barriers to protect domestic industries
The reduction or elimination of trade barriers and restrictions
The act of monopolizing international markets
The practice of promoting fair trade practices
#10
What is 'currency manipulation' in the context of international trade?
The act of setting fixed exchange rates
The intentional devaluation or manipulation of a country's currency to gain an unfair trade advantage
The practice of issuing excessive currency to stimulate economic growth
The exchange of currencies in the foreign exchange market
#11
What is 'dumping' in the context of international trade?
The act of selling goods in a foreign market at a price lower than in the domestic market
The exchange of goods and services without involving money
The practice of imposing high tariffs on imported goods
The process of converting goods into a liquid state for transportation
#12
What is the 'Most Favored Nation' (MFN) status in international trade?
A trade agreement that gives preferential treatment to certain countries
A status granted to a country to impose higher tariffs on specific goods
A designation for countries with the highest export volume
An organization advocating for fair trade practices
#13
What is 'trade facilitation'?
The process of increasing trade barriers
The elimination of trade barriers to ease the flow of goods and services across borders
The practice of imposing tariffs on imported goods
The enforcement of strict regulations on international trade
#14
Which trade agreement created a single market by removing barriers to the free movement of goods, services, and people within the member countries?
North American Free Trade Agreement (NAFTA)
Trans-Pacific Partnership (TPP)
European Union (EU)
Mercosur
#15
Which trade theory emphasizes the role of economies of scale and imperfect competition in explaining international trade?
Mercantilism
Absolute advantage theory
New trade theory
Theory of comparative advantage