Understanding International Trade: A Quiz

What is the annual difference between a country's exports and imports called?

• Trade balance

• Net exports

• Gross domestic product

• Fiscal outcome

Which country was the largest trading partner of the US, not counting China?

• Mexico

• Germany

• Canada

• Brazil

What is the term used when a country's currency becomes more powerful compared to another country's currency?

• Depreciation

• Inflation

• Devaluation

• Appreciation

What was the US's net exports status in 2014?

• Trade surplus

• Trade equilibrium

• Trade deficit

• Trade balance

Which organization is designed to eradicate protectionism?

• World Health Organization

• World Trade Organization

• International Monetary Fund

• United Nations

What does NAFTA stand for?

• New Agreement of Free Trade

• North Atlantic Free Trade Association

• National Association of Free Trade

• North American Free Trade Agreement

What happens when the dollar appreciates?

• US exports rise and imports fall

• US imports rise and exports fall

• Both US exports and imports rise

• Both US exports and imports fall

What is recorded in the financial account of the balance of payments?

• Goods and services transactions

• Investment income earned abroad

• Transactions involving stocks and bonds

• Foreign aid and other transfers