International Trade Dynamics Quiz

Tariffs are taxes imposed on imported goods, making them more expensive and thus serving as a barrier to trade.

The WTO aims to negotiate trade agreements, resolve trade disputes, and oversee the implementation of trade policies globally.

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

The ISO develops and publishes international standards to ensure the quality, safety, and efficiency of products and services.

The Smoot-Hawley Tariff Act of 1930 raised tariffs on thousands of imported goods, exacerbating the effects of the Great Depression by triggering retaliatory measures from other countries and reducing international trade.

The theory of comparative advantage argues that countries should focus on producing goods and services where they have a comparative advantage, leading to overall efficiency and welfare gains.

The balance of trade measures the difference between the value of a country's exports and imports of goods and services.

ISI aims to promote domestic production of goods to replace imports, often through protectionist policies such as tariffs and subsidies.

Trade liberalization involves reducing or removing barriers to trade such as tariffs, quotas, and regulations, to promote free trade and economic integration.

Currency manipulation involves deliberate actions by a country's government to influence the value of its currency, often to make its exports cheaper and imports more expensive, giving it an unfair trade advantage.

Dumping refers to the practice of selling goods in a foreign market at a price lower than what they are sold for in the domestic market, often to gain market share or drive competitors out of business.

MFN status is a trade agreement between countries where each country agrees to grant the same favorable terms given to one country to all other MFN countries.

Trade facilitation involves streamlining customs procedures, reducing tariffs, and harmonizing regulations to make international trade easier and more efficient.

The European Union (EU) established a single market by removing barriers to the free movement of goods, services, and people within its member countries.

New trade theory emphasizes the importance of economies of scale, imperfect competition, and first-mover advantages in explaining patterns of international trade and the gains from trade.