Economics Revision

How can trade between two nations be mutually beneficial?

The fundamental economic advantage of free world trade is:

• the easing of political tension between nations

• all nations will develop similar industries

• all nations will share equally in the world's wealth

• a more efficient allocation of resources.

Which of the following is a potential drawback of free world trade?

• Increased cultural exchange

• Loss of domestic industries

• Improved international relations

• Enhanced resource allocation

What is one of the main goals of international trade agreements?

• To increase tariffs on imported goods

• To promote fair competition

• To restrict the flow of goods between countries

• To ensure all countries have the same economic policies

How does free trade benefit consumers?

• By limiting the variety of products available

• By increasing the prices of goods

• By providing access to a wider range of goods and services

• By reducing competition among businesses

Tax on imports is an example of

• Terms of Trade

• Collateral

• Foreign Trade

• Trade Barriers

Removing barriers or restrictions set by the government is what is known as ________

• Globalisation

• Privatisation

• Liberalisation

• All of the above

What is a common effect of trade barriers on international trade?

• Increase in the volume of trade

• Reduction in the variety of goods available

• Decrease in the cost of goods

• Promotion of global economic integration

Which organisation is primarily responsible for regulating international trade?

• World Health Organisation (WHO)

• International Monetary Fund (IMF)

• World Trade Organisation (WTO)

• United Nations (UN)

What is a potential benefit for a country that engages in free trade?

• Increased self-sufficiency

• Access to cheaper raw materials

• Higher tariffs on exports

• Reduced foreign competition