Unit 4: Interdependence & Globalization (Diff2)

A U.S. auto manufacturer plans to relocate plant operations to Mexico as a result of the USMCA. Which criticism of free trade agreements would be based on this relocation?

• The demand for U.S. automobiles will decrease.

• The cost for producing U.S. automobiles will increase.

• U.S. automotive designers will have to create more efficient cars.

• U.S. automotive factory workers will have to compete with foreign workers.

Which term means: a stance that some countries adopt to protect their domestic industries from foreign competition?

• Protectionism

• Free trade

• Barriers to trade

• USMCA

Which of the following is NOT an effect of tariffs?

• Decline in consumption

• Increased domestic production

• Decline in imports

• Increased foreign production

• Tariff revenue

How do quotas affect trade?

• They tax imports from a nation.

• They prevent trade with another nation.

• They limit the number of imports from a nation.

• They encourage trade with another nation.

What would be the effect of the United States establishing tariffs on solar energy products from China?

• Chinese consumers would purchase more U.S. solar products.

• U.S. consumers would pay more for Chinese solar products.

• Chinese solar manufacturers would lower domestic prices.

• U.S. solar manufacturers would slow production.

How does scarcity of resources affect the nations of the world?

• It causes nations to develop tax laws.

• It causes nations to trade with one another.

• It decreases the need for nations to develop technology.

• It decreases the need for nations to work together peacefully.

Which term means: a government payment to a domestic producer of exported goods designed to help the producer

• export subsidy

• import subsidy

• tariff

• sanction

What is the main difference between a revenue tariff and a protective tariff?

• Revenue tariffs are put in place to provide the federal govt with revenue while protective tariffs protect domestic industries

• Revenue tariffs are put in place to provide corporations with more revenue while protective tariffs protect the govt's interests

• Revenue tariffs are put in place to provide citizens with more revenue while protective tariffs protect domestic industries

Which of the following is a major EXPORT of the US?

• electronics

• airplanes and airplane parts

• crude oil

Which of the following is a major IMPORT of the US?

• airplanes and airplane parts

• clothing and children's toys

• medical equipment and services