#1
Which of the following is an example of a trade barrier?
Tariff
Comparative advantage
GDP growth
Inflation rate
#2
What is the 'Most Favored Nation' principle in international trade?
A country treating all its trading partners equally
A nation favoring only one trading partner
A strategy to maximize trade surplus
An exclusive trade agreement
#3
In the context of international trade, what is 'trade liberalization'?
The imposition of trade barriers
The process of reducing or eliminating trade restrictions
The promotion of protectionist policies
The establishment of trade monopolies
#4
What is the 'balance of payments' in international trade?
A government's financial budget
The difference between a country's exports and imports of goods and services
A trade agreement between two nations
A currency exchange rate
#5
What does the term 'Dumping' refer to in international trade?
Selling goods below cost in a foreign market
Trading goods at a fair market value
Imposing tariffs on imported goods
Establishing trade agreements
#6
Which organization facilitates international trade negotiations and dispute resolution?
World Health Organization (WHO)
International Monetary Fund (IMF)
World Trade Organization (WTO)
International Labor Organization (ILO)
#7
What is the main purpose of import tariffs?
To encourage imports
To discourage exports
To generate revenue for the government
To promote international cooperation
#8
Which economic theory emphasizes the importance of a nation's comparative advantage in international trade?
Mercantilism
Keynesianism
Classical liberalism
Supply-side economics
#9
How does a currency devaluation affect a country's exports and imports?
It boosts exports and reduces imports
It reduces both exports and imports
It has no impact on trade
It increases imports and decreases exports
#10
What is the role of the International Monetary Fund (IMF) in the context of international trade?
To promote protectionism
To provide financial assistance to countries facing balance of payments problems
To impose trade sanctions
To establish global trade agreements
#11
What is the purpose of a free trade agreement (FTA)?
To increase trade barriers
To promote protectionism
To reduce or eliminate trade barriers between participating countries
To establish currency exchange rates
#12
How does a trade surplus impact a country's economy?
It leads to inflation
It strengthens the country's currency
It reduces exports
It increases unemployment
#13
What is a trade deficit, and how does it impact a country's economy?
Excess of exports over imports, leading to economic growth
Excess of imports over exports, potentially impacting the currency value
Balance between imports and exports, contributing to stability
Complete absence of international trade
#14
What is the 'Laffer Curve' in the context of international trade?
A graphical representation of the relationship between tax rates and government revenue
A strategy for minimizing trade deficits
A trade barrier used to protect domestic industries
An economic theory promoting isolationism
#15
What is the 'Smoot-Hawley Tariff Act,' and what impact did it have on international trade during the Great Depression?
A trade agreement promoting free trade
A tariff act that raised duties on thousands of imported goods, worsening the global economic downturn
A currency exchange policy
A treaty to eliminate trade barriers among nations
#16
What is the primary goal of the General Agreement on Tariffs and Trade (GATT)?
To increase import tariffs
To reduce trade barriers and promote international trade
To establish a global currency
To encourage protectionist policies