International Trade Quiz

What is the main purpose of the system of worldwide trade?

• Maximize exports and minimize imports

• Promote self-sufficiency

• Increase the country's supply of gold

• Create barriers to international trade

What is the concept of specialization in international trade?

• Countries should import only luxury goods

• Countries should not engage in trade at all

• Countries should focus on making things they are comparatively good at and import the rest

• Countries should focus on making everything they need

What is the metric used to measure a country's economy's productivity?

• Net Imports

• Gross Domestic Product

• Total Exports

• Gross National Product

What was the purpose of the system of mercantilism?

• To encourage international trade

• To maximize imports and minimize exports

• To prioritize self-sufficiency

• To promote free trade agreements

What organization was formed after World War Two to regulate international trade?

• North American Free Trade Agreement

• General Agreement on Tariffs and Trade

• World Trade Organization

• United Nations

What is the principle of comparative advantage in international trade?

• Countries should not engage in trade with other countries

• Countries should focus on producing goods they can sell at a high price point

• Countries should focus on producing goods they are not good at

• Countries should focus on producing goods they can sell at a reasonable price point

What was the purpose of the General Agreement on Tariffs and Trade (GATT)?

• To discourage international trade

• To promote mercantilism

• To lower trade barriers and create rules for free trade

• To increase trade barriers

What was the impact of advances in technology and travel on international trade?

• Decreased accessibility to remote markets

• Increased trade barriers

• Reduced global stability

• Made remote markets more accessible

What was the purpose of the North American Free Trade Agreement (NAFTA)?

• To eliminate all trade agreements

• To promote self-sufficiency in North America

• To facilitate more trade among the US, Mexico, and Canada

• To increase trade barriers between the US, Mexico, and Canada

What is one of the challenges policymakers face in international trade?

• Eliminating all trade agreements

• Promoting self-sufficiency in all countries

• Assisting those who have been disadvantaged by trade with support and training for new jobs

• Ensuring that all countries have the same level of economic development