Globalisation, Trade

Question 1

Trade

Answer 1

The exchange of goods and services between people or countries, usually for money.

Question 2

Imports

Answer 2

Goods or services brought into a country from abroad for sale.

Question 3

Exports

Answer 3

Goods or services sent to another country for sale.

Question 4

Balance of Trade

Answer 4

The difference between the value of a country’s exports and imports.

Question 5

Trade Surplus

Answer 5

When a country exports more goods and services than it imports.

Question 6

Trade Deficit

Answer 6

When a country imports more goods and services than it exports.

Question 7

Globalization

Answer 7

The increasing interconnectedness of countries through trade, communication, technology, and culture.

Question 8

Domestic Trade

Answer 8

Trade that takes place within a single country.

Question 9

International Trade

Answer 9

Trade between different countries.

Question 10

Bilateral Trade

Answer 10

Trade between two countries.

Question 11

Multilateral Trade

Answer 11

Trade among many countries often via agreements.

Question 12

Free Trade

Answer 12

Trade without tariffs, quotas, or restrictions.

Question 13

Fair Trade

Answer 13

An ethical movement ensuring producers in poorer countries get a fair price.

Question 14

Protectionism

Answer 14

Government policies that protect domestic industries from foreign competition.

Question 15

Trade Bloc

Answer 15

A group of countries that reduce trade barriers among themselves.

Question 16

Tariff

Answer 16

A tax on imports or exports.

Question 17

Quota

Answer 17

A limit on the quantity of a product that can be imported or exported.

Question 18

Subsidy

Answer 18

Government financial support to a local industry to help it compete with foreign imports.

Question 19

Sanction

Answer 19

Penalties or restrictions placed on trade with a country for political reasons.

Question 20

Embargo

Answer 20

A complete ban on trade with a particular country.

Question 21

Customs

Answer 21

The authority that regulates goods entering or leaving a country, collecting tariffs.

Question 22

WTO (World Trade Organization)

Answer 22

An international body that regulates and promotes global trade between countries.

Question 23

NAFTA / USMCA

Answer 23

North American trade agreement between the US, Mexico, and Canada to reduce trade barriers.

Question 24

EU (European Union)

Answer 24

A political and economic union of European countries allowing free trade among members.

Question 25

ASEAN

Answer 25

A regional trade group of Southeast Asian nations.

Question 26

FTA (Free Trade Agreement)

Answer 26

A treaty between countries to eliminate tariffs and encourage free trade.

Question 27

Comparative Advantage

Answer 27

The ability of a country to produce a good at a lower opportunity cost than others.

Question 28

Specialization

Answer 28

When a country focuses on producing goods or services it can make most efficiently.

Question 29

Interdependence

Answer 29

When countries rely on each other to provide goods, services, and markets.

Question 30

Developed Country

Answer 30

A nation with high income, advanced infrastructure, and a strong economy.

Question 31

Developing Country

Answer 31

A country with a lower standard of living and a growing economy.

Question 32

Trade Inequality

Answer 32

Unequal distribution of trade benefits, often leaving poorer countries disadvantaged.

Question 33

Supply Chain

Answer 33

The full process of producing and distributing a product.

Question 34

Outsourcing

Answer 34

Hiring another company or country to produce goods or services.

Question 35

Offshoring

Answer 35

Moving part of a company’s operations abroad to reduce costs.

Question 36

Multinational Corporation (MNC)

Answer 36

A company that operates in more than one country.

Question 37

GDP (Gross Domestic Product)

Answer 37

The total value of all goods and services produced in a country in a year.

Question 38

Remittances

Answer 38

Money sent back home by workers living and working abroad.