International Trade Quiz

What is foreign direct investment (FDI)?

What is international trade?

• Trade between two countries within the same region

• Trade between companies within the same country

• Trade between countries involving the exchange of goods and services

• Trade between individuals within the same country

What is protectionism in international trade?

• The promotion of free trade policies

• The imposition of barriers to restrict imports

• The elimination of tariffs and quotas

• The encouragement of foreign investment

What is comparative advantage in international trade?

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

• When a country can produce a specific good at a lower opportunity cost than other countries

• When a country has an absolute advantage in all goods compared to other countries

• When a country has a monopoly in a specific industry

What are tariffs in international trade?

• Financial incentives given to exporters

• Taxes imposed on imports

• Subsidies given to domestic producers

• Quotas limiting the quantity of imports

What is NAFTA?

• North American Free Trade Agreement

• North Atlantic Free Trade Association

• Nordic-American Free Trade Agreement

• North African Free Trade Agreement

Which of the following is not a benefit of international trade?

• Increased competition

• Lower prices for

• Limited choices for consumers

• Access to a wider range of goods and services

What is a multinational corporation (MNC)?

• A corporation that operates in multiple countries

• A corporation that operates in a single country

• A corporation that exports goods to foreign markets

• A corporation that imports goods from foreign markets

What is ASEAN?

• Association of South American Nations

• Association of Southeast Asian Nations

• African Union

• Arab League

What is the purpose of trade finance?

• a) To provide financing for international trade transactions

• b) To regulate international financial markets

• c) To promote protectionist trade policies

• d) To facilitate currency devaluation