Economics Quiz - Globalisation, Free Trade & Protection

What is globalization?

• The process of decreasing trade and communication between countries.

• The process of increasing isolation and self-sufficiency among countries.

• The process of increasing interconnectedness and interdependence among countries.

• The process of decreasing interconnectedness and interdependence among countries.

Define free trade.

• Policy that allows only certain goods and services to be traded between countries

• Policy that promotes trade barriers and restrictions between countries

• Policy that allows goods and services to be traded between countries without restrictions or barriers

• Policy that restricts the trade of goods and services between countries

What is protectionism?

• An economic policy that encourages foreign investment.

• An economic policy that focuses on reducing government regulations on businesses.

• An economic policy that promotes free trade and open markets.

• An economic policy that restricts or limits international trade to protect domestic industries and businesses from foreign competition.

Explain the concept of tariffs.

• Tariffs are restrictions imposed by a country's government on the import of certain goods or services.

• Tariffs are taxes or duties imposed on imported goods or services by a country's government.

• Tariffs are fees charged by shipping companies for transporting goods across borders.

• Tariffs are subsidies provided by a country's government to promote the export of goods or services.

What are trade barriers?

• Taxes imposed on domestic goods and services

• Agreements between countries to promote free trade

• Government-imposed restrictions on the flow of goods and services between countries.

• Government subsidies for domestic industries

How does globalization impact the economy?

• Globalization impacts the economy by increasing international trade, promoting economic growth, and creating opportunities for businesses to expand globally.

• Globalization only benefits large corporations and not the overall economy

• Globalization leads to economic decline and recession

• Globalization has no impact on the economy

What are the advantages of free trade?

• Increased economic growth, lower prices for consumers, access to a wider variety of goods and services, increased competition, improved efficiency and innovation.

• Limited economic growth, higher prices for consumers, reduced access to goods and services, decreased competition, decreased efficiency and innovation

• Higher prices for consumers, limited access to goods and services, decreased economic growth, reduced competition, decreased efficiency and innovation

• Higher unemployment rates, reduced economic growth, limited consumer choices, decreased competition, decreased efficiency and innovation

What are the disadvantages of protectionism?

• Protectionism can lead to job losses and unemployment, decreased innovation and technological progress, and limited access to foreign markets.

• Protectionism can lead to higher prices for consumers, reduced competition, retaliation from other countries, and inefficient allocation of resources.

Give an example of a tariff.

• Value-added tax

• Excise tax

• Income tax

• Import duty

How do trade barriers affect international trade?

• Trade barriers restrict the flow of goods and services between countries.

• Trade barriers promote the flow of goods and services between countries.

• Trade barriers have no impact on international trade.

• Trade barriers only affect domestic trade, not international trade.