International Trade
| Description: International Trade Quiz | |
| Number of Questions: 14 | |
| Created by: Aliensbrain Bot | |
| Tags: international trade economics globalization |
What is the main purpose of international trade?
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To increase the efficiency of production
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To promote economic growth
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To reduce poverty
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To improve the standard of living
International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to increased efficiency and lower production costs.
What is the theory of comparative advantage?
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A theory that explains why countries should specialize in the production of goods and services in which they have a comparative advantage.
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A theory that explains why countries should trade with each other.
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A theory that explains why countries should protect their domestic industries.
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A theory that explains why countries should pursue autarky.
The theory of comparative advantage, developed by David Ricardo, explains that countries should specialize in the production of goods and services in which they have a comparative advantage, even if they have an absolute advantage in producing other goods and services.
What is the difference between absolute advantage and comparative advantage?
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Absolute advantage refers to the ability of a country to produce more of a good or service with the same resources, while comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost.
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Absolute advantage refers to the ability of a country to produce more of a good or service with the same resources, while comparative advantage refers to the ability of a country to produce a good or service at a higher opportunity cost.
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Absolute advantage refers to the ability of a country to produce more of a good or service with the same resources, while comparative advantage refers to the ability of a country to produce a good or service at the same opportunity cost.
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Absolute advantage refers to the ability of a country to produce more of a good or service with the same resources, while comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost.
Absolute advantage refers to the ability of a country to produce more of a good or service with the same resources, while comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost.
What are the main benefits of international trade?
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Increased efficiency of production
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Increased economic growth
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Reduced poverty
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Improved standard of living
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All of the above
International trade can lead to increased efficiency of production, increased economic growth, reduced poverty, and improved standard of living.
What are the main challenges of international trade?
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Unequal distribution of benefits
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Job losses in certain industries
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Environmental degradation
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Cultural homogenization
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All of the above
International trade can lead to unequal distribution of benefits, job losses in certain industries, environmental degradation, and cultural homogenization.
What are some of the most common trade barriers?
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Tariffs
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Quotas
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Subsidies
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Embargoes
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All of the above
Tariffs, quotas, subsidies, and embargoes are all common trade barriers.
What is the World Trade Organization (WTO)?
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An international organization that regulates trade between countries.
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An international organization that promotes free trade.
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An international organization that resolves trade disputes.
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All of the above
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None of the above
The World Trade Organization (WTO) is an international organization that regulates trade between countries, promotes free trade, and resolves trade disputes.
What is the difference between a free trade agreement (FTA) and a customs union?
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A free trade agreement (FTA) is an agreement between two or more countries to reduce or eliminate tariffs and other trade barriers, while a customs union is an agreement between two or more countries to eliminate tariffs and other trade barriers among themselves and to adopt a common external tariff.
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A free trade agreement (FTA) is an agreement between two or more countries to eliminate tariffs and other trade barriers, while a customs union is an agreement between two or more countries to reduce or eliminate tariffs and other trade barriers.
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A free trade agreement (FTA) is an agreement between two or more countries to adopt a common external tariff, while a customs union is an agreement between two or more countries to eliminate tariffs and other trade barriers among themselves.
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A free trade agreement (FTA) is an agreement between two or more countries to reduce or eliminate tariffs and other trade barriers, while a customs union is an agreement between two or more countries to adopt a common external tariff and to eliminate tariffs and other trade barriers among themselves.
A free trade agreement (FTA) is an agreement between two or more countries to reduce or eliminate tariffs and other trade barriers, while a customs union is an agreement between two or more countries to eliminate tariffs and other trade barriers among themselves and to adopt a common external tariff.
What is the most important factor that determines the direction of trade?
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Comparative advantage
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Demand
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Supply
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Transportation costs
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All of the above
Comparative advantage is the most important factor that determines the direction of trade.
What is the difference between a trade deficit and a trade surplus?
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A trade deficit occurs when a country imports more goods and services than it exports, while a trade surplus occurs when a country exports more goods and services than it imports.
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A trade deficit occurs when a country exports more goods and services than it imports, while a trade surplus occurs when a country imports more goods and services than it exports.
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A trade deficit occurs when a country's exports and imports are equal, while a trade surplus occurs when a country's exports and imports are not equal.
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A trade deficit occurs when a country's exports and imports are not equal, while a trade surplus occurs when a country's exports and imports are equal.
A trade deficit occurs when a country imports more goods and services than it exports, while a trade surplus occurs when a country exports more goods and services than it imports.
What is the relationship between international trade and economic growth?
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International trade can lead to economic growth by increasing efficiency, promoting innovation, and expanding markets.
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International trade can lead to economic growth by reducing poverty and inequality.
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International trade can lead to economic growth by improving the standard of living.
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All of the above
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None of the above
International trade can lead to economic growth by increasing efficiency, promoting innovation, expanding markets, reducing poverty and inequality, and improving the standard of living.
What are some of the ethical issues related to international trade?
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The exploitation of workers in developing countries
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The environmental impact of production and transportation
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The cultural homogenization of different societies
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All of the above
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None of the above
The exploitation of workers in developing countries, the environmental impact of production and transportation, and the cultural homogenization of different societies are all ethical issues related to international trade.
What are some of the challenges facing the global trading system?
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The rise of protectionism
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The increasing complexity of global supply chains
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The digital divide
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Climate change
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All of the above
The rise of protectionism, the increasing complexity of global supply chains, the digital divide, and climate change are all challenges facing the global trading system.
What is the future of international trade?
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The continued growth of global trade
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The fragmentation of the global trading system
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A more sustainable and inclusive global trading system
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All of the above
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None of the above
The continued growth of global trade, the fragmentation of the global trading system, and a more sustainable and inclusive global trading system are all possible futures for international trade.