Trade 2

What is the purpose of the World Trade Organization (WTO)?

• To eliminate all international trade barriers

• To regulate intellectual property rights in trade

• To resolve trade disputes and enforce trade rules

• To maximize exports for all member countries

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

• To encourage self-sufficiency in member countries

• To restrict international trade to a few countries

• To lower trade barriers and promote free trade

• To increase tariffs on imports

What is the measure of a country's ability to utilize its resources efficiently?

• Total Imports

• Gross National Product (GNP)

• Gross Domestic Product (GDP)

• Total Exports

What is the impact of international trade on the global economy?

• Leads to global instability

• Increases access to cheaper and better goods and services

• Reduces job opportunities worldwide

• Creates more barriers to trade

What is the role of bilateral and regional trade agreements?

• To address specific trade needs and strategies

• To promote self-sufficiency in member countries

• To restrict trade between countries

• To eliminate all international trade barriers

What is trade?

• Selling goods only within a country

• The exchange of goods or services between two parties

• The buying of only one type of good

• The process of making goods

What is international trade?

• The exchange of goods or services between different countries

• Selling goods only to one city

• Producing goods in only one country

• Storing goods for the future

Why do countries engage in international trade?

• To keep all their goods to themselves

• To compete and block other countries’ goods

• To avoid selling goods domestically

• To help each other by trading goods they lack

Why might one country produce a good more cheaply than another?

• Because it has no skilled workers

• Because it produces all goods locally

• Because it has no resources

• Due to lower costs of labor or abundant resources

Why do countries need to import certain goods?

• They lack the natural resources or ability to produce certain goods

• Because they refuse to produce anything themselves

• To reduce the variety of goods available

• To avoid exports