Understanding Trade Basics

What is trade?

• Trade is the sale of stocks only.

• Trade is the process of manufacturing goods.

• Trade is the act of providing services for free.

• Trade is the exchange of goods and services.

What are the two main types of trade?

• Wholesale trade and retail trade

• Local trade and regional trade

• Domestic trade and international trade

• E-commerce trade and barter trade

What is the difference between import and export?

• Import is the process of manufacturing goods; export is the process of selling them domestically.

• Import refers to the sale of services; export refers to the purchase of goods.

• Import is only applicable to digital products; export is only for physical goods.

• Import is bringing goods into a country; export is sending goods out of a country.

Why do countries trade with each other?

• Countries trade to access resources, enhance efficiency, and improve economic relationships.

• To increase population density

• To reduce cultural exchange

• To establish military alliances

What is a trade barrier?

• A trade barrier is a type of currency exchange.

• A trade barrier is a method of increasing exports.

• A trade barrier is a form of international cooperation.

• A trade barrier is a restriction on international trade imposed by a government.

Name one benefit of trade.

• Decreased product variety

• Reduced market competition

• Increased economic efficiency

• Higher unemployment rates

What is a tariff?

• A tariff is a regulation on product quality standards.

• A tariff is a fee for shipping goods domestically.

• A tariff is a subsidy for local businesses.

• A tariff is a tax on imports or exports.

How can trade create jobs?

• Trade has no impact on job creation or loss.

• Trade only benefits large corporations, not local businesses.

• Trade creates jobs by increasing demand and stimulating economic growth.

• Trade reduces the number of jobs by outsourcing work.

What is free trade?

• Free trade is limited to domestic markets only.

• Free trade is a government-controlled trade system.

• Free trade is the exchange of goods with high tariffs.

• Free trade is the unrestricted exchange of goods and services between countries without tariffs or quotas.

What is a trade agreement?

• A trade agreement is a document for travel visas.

• A trade agreement is a formal arrangement between countries that governs trade terms.

• A trade agreement is a type of currency exchange.

• A trade agreement is a law regulating immigration.