BAIB1001 Week 2 Seminar 2 23/24

What is globalisation in the context of international trade?

• A government's policy to restrict foreign trade

• The process of increasing interconnectedness and interdependence among countries

• A trade agreement between two neighbouring countries

• A form of currency exchange

Which of the following is an example of a trade barrier?

• A reduction in import tariffs

• A free trade agreement

• A quota on imported goods

• A stable exchange rate

What is the primary purpose of the World Trade Organization (WTO)?

• To promote fair trade practices and protect consumers

• To regulate international financial markets

• To facilitate negotiations and resolve trade disputes among member countries

• To provide humanitarian aid to developing nations

What is comparative advantage in international trade?

• When a country has an absolute advantage in producing all goods

• When a country can produce all goods more efficiently than any other country

• When a country specialises in producing the goods it can produce most efficiently

• When a country restricts trade with all other nations

Which of the following is not a regional trade agreement?

• NAFTA (North American Free Trade Agreement)

• EU (European Union)

• ASEAN (Association of Southeast Asian Nations)

• WTO (World Trade Organisation)

Which of the following best describes protectionism in international trade?

• The promotion of free trade and open markets

• The practice of limiting imports to protect domestic industries

• A trade agreement among neighbouring countries

• The process of devaluing a nation's currency

What does the term "tariff" refer to in the context of international trade?

• An international trade organisation

• A tax imposed on imported or exported goods

• A bilateral trade agreement between two countries

• A unit of currency used in trade settlements

What is the key feature of a free trade agreement (FTA) between two or more countries?

• The imposition of high tariffs on all imported goods

• The absence of any trade regulations or agreements

• The elimination or reduction of trade barriers, such as tariffs and quotas

• The exclusive promotion of trade with non-participating nations

What is the main objective of an export subsidy in international trade? [Challenging]

• To reduce the cost of domestic production

• To increase the quality of exported goods

• To discourage domestic businesses from exporting

• To impose tariffs on imported goods

Which of the following is a benefit of globalisation in international trade?

• Increased risk of financial crises

• Reduced cultural exchange and understanding

• Enhanced economic growth through access to larger markets

• A decrease in the availability of consumer goods