International Trade

What is a key characteristic of services in the context of international trade?

• They can be touched and seen.

• They are always free.

• They are intangible goods.

• They are less valuable than manufactured goods.

What does GDP stand for, as mentioned in the passage?

• General Domestic Production

• Global Development Program

• Gross Domestic Product

• Government Debt Percentage

What significant trade agreement was created after World War 2 to lower trade barriers?

• The European Union

• The General Agreement on Tariffs and Trade (GATT)

• NAFTA

• The World Economic Forum

What economic system did most European countries follow before the 19th century?

• Capitalism

• Mercantilism

• Socialism

• Feudalism

What does the passage identify as the primary components of international trade?

• Technology and innovation

• Cultural exchanges

• Ships, trucks, and planes moving goods

• Diplomatic relationships

What organization succeeded GATT in 1995?

• United Nations

• World Trade Organization (WTO)

• International Monetary Fund

• World Bank

What is one challenge mentioned in the passage that policymakers face regarding international trade?

• Encouraging countries to stop trading

• Assisting those disadvantaged by trade

• Decreasing GDP worldwide

• Maximizing imports to each country

What impact did technological advances and travel have on international trade?

• They made remote markets more accessible.

• They reduced the volume of trade.

• They encouraged countries to become self-sufficient.

• They made international trade less necessary.

How does the passage explain the concept of comparative advantage?

• By prioritizing gold over productivity

• Through countries specializing in what they can produce most efficiently

• By maximizing imports

• Through strict tariffs on exports

What was the main aim of mercantilism as described in the passage?

• To maximize exports and minimize imports

• To encourage free trade

• To promote global peace

• To reduce the production of goods