MCAP Review 19: Foreign Policy

When more countries join the WTO (World Trade Organization), what is the most likely effect on the global economy?

• Free trade would create monopolies on goods.

• Lower tariffs would benefit consumers.

• Production times for consumer goods would decrease.

• New trade rules would encourage the use of nuclear energy.

Answer explanation

The goal of the WTO is to lower tariffs (taxes on trade) so trade will increase.

In which situation would the federal government most likely provide foreign aid?

• An earthquake destroys the infrastructure of a foreign nation.

• The territory of the United States is threatened by another world power.

• A foreign nation violates the human rights of its citizens.

• The economy of the United States declines during a worldwide recession.

The United Nations was organized to

• decrease trade barriers

• prevent further world wars

• establish a military alliance

• create a single world currency

Select the newspaper headlines that provides the best examples of diplomacy.

• Senate Confirms Ambassador Nominations

• Department of State Issues International Travel Warning

• Secretary of State Negotiates Alliance with Mexico

• President Imposes Economic Sanctions on North Korea

Why is the United States a member of the North Atlantic Treaty Organization (NATO)?

• to reduce barriers to international trade

• to participate in a mutual defense alliance

• to share medical technology with friendly countries

• to strengthen international environmental protection laws

The United States banned the trade of certain goods and services to South Africa. The policy was in response to segregation laws in South Africa.

Which of these best describes this action toward South Africa?

• diplomacy

• military alliances

• foreign aid

• sanctions

Answer explanation

A sanction is an economic punishment put on another country.