International Trade

What is PROTECTIONISM?

• economic policy of restricting imports from other countries

• economic policy of restricting exports from other countries

• economic policy of imports from other countries

• economic policy of exports from other countries

President Trump has enacted tariffs against China and a lot of people worried that China might retaliate and enact tariffs against the U.S. What is this event called?

• A trade war

• A misallocation of recources

• A national security issue

• A loss of domestic jobs

Which of the following trade barriers is a block on trade with another country?

• Tariff

• Embargo

• Quota

• Standards

The value that one currency has compared to another currency is called exchange rate

• True

• False

A country that concentrates on producing and selling one particular product demonstrates this concept

• specialization
• quotas
• absolute advantage of trade
• cartel

Which is a benefit of the U.S. dollar weakening against the Euro?

• Americans will buy more European made cars.

• People will buy more European goods in the U.S.

• Europeans will travel to the U.S. because it will be a better bargain.

• Americans will travel more to European destinations.

This trade barrier limits the number of products that can be brought into a country.

• Tariff

• Quota

• Embargo

• Subsidy

This is a tax on imports that is used to increase price of foreign products and raise government revenue.

• tariff

• quota

• subsidy

• embargo

In 1962, the United States sanctioned Cuba and prohibited all imports and exports to and from Cuba. This is an example of which trade barrier?

• A sanction implemented as a tariff

• A sanction implemented as an embargo

• A sanction implemented as a quota

• A sanction implemented as free trade

Why would a country impose a tariff or quota on imported goods?

• to raise the price of imported foreign goods, which would encourage people to buy domestic goods

• to raise the price of imported foreign goods to help foreign countries make more money

• to raise the price of exported goods so your country makes more money

• to lower the price of imported foreign goods, which would encourage people to buy more imports