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Globalization and Free Trade

Description: Globalization and Free Trade Quiz
Number of Questions: 17
Created by:
Tags: globalization free trade economics politics
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What is the process of increasing interconnectedness and interdependence between countries and peoples?

  1. Globalization

  2. Localization

  3. Isolationism

  4. Protectionism


Correct Option: A
Explanation:

Globalization is the process of increasing interconnectedness and interdependence between countries and peoples.

What is the theory that countries should specialize in producing goods and services in which they have a comparative advantage?

  1. Absolute Advantage

  2. Comparative Advantage

  3. Theory of Comparative Costs

  4. Law of Comparative Advantage


Correct Option: B
Explanation:

Comparative advantage is the theory that countries should specialize in producing goods and services in which they have a comparative advantage.

What is the term for the removal or reduction of trade barriers between countries?

  1. Free Trade

  2. Protectionism

  3. Tariff

  4. Quota


Correct Option: A
Explanation:

Free trade is the term for the removal or reduction of trade barriers between countries.

What is the term for a tax or duty imposed on imported goods?

  1. Tariff

  2. Quota

  3. Embargo

  4. Sanction


Correct Option: A
Explanation:

A tariff is a tax or duty imposed on imported goods.

What is the term for a limit on the quantity of a good that can be imported or exported?

  1. Tariff

  2. Quota

  3. Embargo

  4. Sanction


Correct Option: B
Explanation:

A quota is a limit on the quantity of a good that can be imported or exported.

What is the term for a complete ban on trade with a particular country?

  1. Tariff

  2. Quota

  3. Embargo

  4. Sanction


Correct Option: C
Explanation:

An embargo is a complete ban on trade with a particular country.

What is the term for a penalty imposed on a country for violating international law or agreements?

  1. Tariff

  2. Quota

  3. Embargo

  4. Sanction


Correct Option: D
Explanation:

A sanction is a penalty imposed on a country for violating international law or agreements.

What is the term for the movement of goods and services across national borders?

  1. Trade

  2. Commerce

  3. Exchange

  4. Transaction


Correct Option: A
Explanation:

Trade is the movement of goods and services across national borders.

What is the term for the value of all goods and services produced in a country in a given period of time?

  1. Gross Domestic Product (GDP)

  2. Gross National Product (GNP)

  3. National Income

  4. Per Capita Income


Correct Option: A
Explanation:

Gross Domestic Product (GDP) is the value of all goods and services produced in a country in a given period of time.

What is the term for the value of all goods and services produced by a country's citizens, regardless of where they are located?

  1. Gross Domestic Product (GDP)

  2. Gross National Product (GNP)

  3. National Income

  4. Per Capita Income


Correct Option: B
Explanation:

Gross National Product (GNP) is the value of all goods and services produced by a country's citizens, regardless of where they are located.

What is the term for the average income of a country's citizens?

  1. Gross Domestic Product (GDP)

  2. Gross National Product (GNP)

  3. National Income

  4. Per Capita Income


Correct Option: D
Explanation:

Per Capita Income is the average income of a country's citizens.

What is the term for the difference between a country's exports and imports?

  1. Trade Surplus

  2. Trade Deficit

  3. Balance of Trade

  4. Terms of Trade


Correct Option: C
Explanation:

Balance of Trade is the difference between a country's exports and imports.

What is the term for the ratio of a country's exports to its imports?

  1. Trade Surplus

  2. Trade Deficit

  3. Balance of Trade

  4. Terms of Trade


Correct Option: D
Explanation:

Terms of Trade is the ratio of a country's exports to its imports.

What is the term for the movement of people from one country to another?

  1. Migration

  2. Immigration

  3. Emigration

  4. Remittances


Correct Option: A
Explanation:

Migration is the movement of people from one country to another.

What is the term for the movement of people into a country?

  1. Migration

  2. Immigration

  3. Emigration

  4. Remittances


Correct Option: B
Explanation:

Immigration is the movement of people into a country.

What is the term for the movement of people out of a country?

  1. Migration

  2. Immigration

  3. Emigration

  4. Remittances


Correct Option: C
Explanation:

Emigration is the movement of people out of a country.

What is the term for the money sent home by migrants to their families in their home country?

  1. Migration

  2. Immigration

  3. Emigration

  4. Remittances


Correct Option: D
Explanation:

Remittances is the money sent home by migrants to their families in their home country.

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