International Trade Assessment

What is one main difference between national and international trade?

• International trade requires a common currency.

• National trade involves tariffs and quotas.

• International trade involves exchange rates.

• National trade requires import licenses.

Which of the following is an advantage of international trade?

• Decreased competition

• Limited market access

• Increased economic growth

• Reduced variety of goods

What is a disadvantage of international trade?

• Increased employment opportunities

• Currency fluctuations

• Access to new markets

• Improvement in technology

How can international trade affect local industries?

• Protects them from foreign competition

• Ensures stable prices

• Increases their market share

• Exposes them to global competition

Which of the following best describes a trade barrier?

• A government policy to encourage exports

• A legal restriction on international trade

• An incentive for domestic production

• A subsidy for foreign companies

What is the role of tariffs in international trade?

• To promote free trade

• To reduce the price of imports

• To protect domestic industries

• To eliminate trade deficits

Which term refers to the exchange of goods and services without monetary transactions?

• Barter

• Export

• Import

• Tariff

Why might a country impose a quota on certain imports?

• To increase foreign competition

• To boost domestic production

• To lower consumer prices

• To expand international relations

What is a potential benefit of free trade agreements?

• Increased tariffs

• Enhanced trade barriers

• Greater market access

• Limited consumer choice

How does international trade contribute to globalization?

• By isolating national economies

• By decreasing cultural exchange

• By integrating global markets

• By reducing international cooperation