International Trade

Why do most countries not produce all the goods and services they need?

• They lack resources

• They prefer imports

• They have unique resources and capabilities

• They are self-sufficient.

International trade is controlled by _________.

• Local businesses

• Governments

• Individual consumers

• International organizations

What is the exchange of goods and services among nations called?

• Domestic trade

• International trade

• Local trade

• Regional trade

One of the benefits of international trade is _______ in product quality.

• a decline

• an improvement

• no change

• inconsistency

Citizens must meet ______ requirements when trading internationally.

• financial

• customs

• educational

• technological

An unfavorable balance of trade ______ a country's revenue.

• increases

• reduces

• stabilizes

• has no effect on

Which of the following is NOT a trade barrier?

• Tariffs

• Quotas

• Free trade agreements

• Import licenses

Fill in the blank: ______ is when a nation exports more than it imports.

• A) Tariffs

• B) Quotas

• C) Trade Deficit

• D) Trade Surplus

A protective tariff is primarily used to ______.

• Generate government revenue

• Protect domestic business and jobs

• Ban specific goods

• Limit the quantity of imports

What is 'Bureaucratic red tape' in the context of trade barriers?

• A) A type of currency manipulation

• B) Subtly imposes unnecessarily burdensome and complex standards and requirements for imported goods

• C) A cultural attitude towards foreign products

• D) A method of increasing export efficiency.