International Trade Concepts and Impacts

The video discusses international trade, explaining its definition, impact on GDP, and the necessity due to uneven distribution of natural resources. It covers different modes of trade transportation, such as sea, air, and land, and highlights the importance of trade balance. The role of technology in enhancing trade efficiency is also explored, emphasizing how it has transformed global trade in recent years.

What is the primary difference between international trade and local trade?

• International trade involves multiple countries, while local trade is within a city or town.

• Local trade involves multiple countries, while international trade is within a city or town.

• International trade only involves goods, while local trade involves services.

• Local trade is more expensive than international trade.

Which mode of transportation is considered the most cost-effective for international trade?

• Air transport

• Sea transport

• Land transport

• Space transport

Why is international trade necessary for countries?

• Because all countries have the same resources.

• To ensure that resources are evenly distributed globally.

• Due to the uneven distribution of natural resources.

• To increase the population of a country.

What does a favorable balance of trade indicate?

• There is no trade happening.

• Imports and exports are equal.

• Exports are greater than imports.

• Imports are greater than exports.

How has information technology impacted international trade?

• It has only impacted local trade.

• It has made trade easier and more efficient.

• It has had no impact on trade.

• It has made trade slower and more complicated.