Understanding Global Trade and Governance

What is the primary goal of deregulation in an industry?

• To increase government control

• To allow businesses to operate more freely

• To decrease competition

• To increase tariffs

Which of the following best describes free trade?

• Trade with high tariffs and quotas

• Trade with government-imposed restrictions

• International trade without tariffs, quotas, or other restrictions

• Trade limited to domestic markets

What are trade barriers?

• Natural obstacles to trade

• Government-imposed restrictions on international goods or services

• Agreements to promote free trade

• Methods to increase foreign investment

What is containerisation?

• A method of containing goods in small boxes

• A system of transporting goods in standardised steel containers

• A process of reducing shipping costs by using larger ships

• A way to increase tariffs on imported goods

What does the term "brain drain" refer to?

• The influx of unskilled workers into a country

• The departure of educated or professional people from one country to another

• The loss of natural resources from a country

• The increase in foreign investment in a country

Which of the following is an example of Foreign Direct Investment (FDI)?

• A UK company exporting goods to France

• Nike building a factory in India

• A local business expanding within its own country

• A government increasing tariffs on imports

What is outsourcing?

• A business moving its operations to another country

• A business contracting other outside businesses to complete some of their work

• A government policy to increase exports

• A method to increase tariffs on imports

What does offshoring involve?

• Increasing domestic production

• Moving parts of a business's operations to another country

• Reducing tariffs on imports

• Increasing government regulations

What is Fordism?

• A system of mass production and consumption, developed by Henry Ford

• A method of increasing tariffs on imported goods, invented by Max Ford

• A government policy to promote free trade

• A strategy to reduce foreign investment, developed by Harry Ford

What is a trade bloc?

• A single country promoting free trade

• A group of countries acting together to promote trade

• A government policy to increase tariffs

• A method to reduce foreign investment by blocking trade