Bases Flashcards
(26 cards)
What is international trade?
International trade is the exchange of goods and services between countries.
True or False: International trade only involves the exchange of physical goods.
False
Fill in the blank: International trade can improve _____ by allowing countries to specialize in what they produce best.
efficiency
What are the two main types of international trade?
Exports and imports.
Which organization regulates international trade?
World Trade Organization (WTO)
Multiple Choice: Which of the following is NOT a benefit of international trade? A) Access to larger markets B) Increased competition C) Economic isolation D) Lower prices
C) Economic isolation
What is a tariff?
A tariff is a tax imposed on imported goods.
True or False: A trade deficit occurs when a country imports more than it exports.
True
What is the primary purpose of free trade agreements?
To reduce barriers to trade between participating countries.
Fill in the blank: The _____ effect describes how international trade can lead to increased economic growth.
multiplier
What is protectionism?
Protectionism is the economic policy of restraining trade between countries through tariffs and regulations.
Multiple Choice: Which of the following is a common trade barrier? A) Subsidies B) Quotas C) Tariffs D) All of the above
D) All of the above
What does the term ‘comparative advantage’ refer to?
The ability of a country to produce a good at a lower opportunity cost than another country.
True or False: International trade can lead to job losses in certain industries within a country.
True
What is the role of the International Monetary Fund (IMF) in international trade?
The IMF provides financial support and advice to countries to ensure stability in the international monetary system.
Fill in the blank: The _____ is the value of a country’s exports minus the value of its imports.
trade balance
What is a trade surplus?
A trade surplus occurs when a country exports more than it imports.
Multiple Choice: Which of the following can be a consequence of international trade? A) Economic growth B) Cultural exchange C) Environmental degradation D) All of the above
D) All of the above
What is globalization in the context of international trade?
Globalization refers to the increasing interconnectedness and interdependence of economies worldwide.
True or False: International trade has no impact on local economies.
False
What is the main difference between absolute advantage and comparative advantage?
Absolute advantage refers to the ability to produce more of a good with the same resources, while comparative advantage focuses on lower opportunity costs.
Fill in the blank: Countries often engage in international trade to access _____ not available domestically.
resources
What is a non-tariff barrier?
A non-tariff barrier is a restriction on international trade that is not a tariff, such as quotas or import licenses.
Multiple Choice: Which of the following is an example of an export? A) Oil B) Cars C) Technology D) All of the above
D) All of the above
