Global Trade Networks and Mercantilism in Historical Context

The video explores the complexity of global trade, highlighting the historical shift from mercantilism to modern trade practices driven by comparative advantage. It discusses the role of the WTO and trade agreements like NAFTA in shaping international trade. The video also addresses challenges such as trade disputes and the impact on local economies, emphasizing the need for policy support to mitigate negative effects.

What is a key characteristic of the global trade network?

• It includes complex supply chains across multiple countries.

• It is limited to agricultural products.

• It focuses solely on domestic markets.

• It involves only local transactions.

What was the primary goal of mercantilism?

• To encourage technological innovation.

• To reduce tariffs on imports.

• To maximize exports and accumulate gold.

• To promote free trade among nations.

How did classical economists view international trade?

• As unnecessary for economic growth.

• As beneficial due to comparative advantage.

• As a way to achieve self-sufficiency.

• As a means to accumulate gold.

What does GDP measure in an economy?

• The total amount of gold a country has.

• The level of technological advancement.

• The sum of all final goods and services produced in a year.

• The number of jobs created in a country.

What was the purpose of the General Agreement on Tariffs and Trade (GATT)?

• To increase tariffs on imports.

• To create a single global currency.

• To lower trade barriers and promote free trade.

• To restrict the export of services.

What role does the World Trade Organization (WTO) play in international trade?

• It sets fixed prices for all goods.

• It focuses only on agricultural trade.

• It eliminates all forms of trade.

• It regulates trade and resolves disputes.

What is a challenge faced by the WTO in addressing trade issues?

• Lack of member countries.

• Focus only on developed countries.

• Inability to create trade agreements.

• Consensus requirement among 164 member countries.

What was the purpose of the North American Free Trade Agreement (NAFTA)?

• To restrict trade between the US, Mexico, and Canada.

• To facilitate more trade among the US, Mexico, and Canada.

• To create a single currency for North America.

• To eliminate all tariffs globally.

How has international trade impacted global economies?

• It has created a tightly interconnected world economy.

• It has reduced the number of available goods.

• It has only benefited developed countries.

• It has led to the decline of all local industries.

What is a challenge for policymakers in the context of international trade?

• To focus only on domestic markets.

• To eliminate all forms of trade.

• To support those disadvantaged by trade.

• To increase tariffs on all imports.