International Trade & Tariffs

1. Which of the following defines balance of trade?

A. The prohibition of free trade

B. The difference between amount exported and amount imported

C. The need for all countries to participate in trade equally

D. The law requiring fair trade among all countries

B. The difference between amount exported and amount imported

Which of the following allows countries which are members to impose a uniform tariff on trade with countries which are not members?

A. An antitrust law

B. A trade surplus

C. A trade security contract

D. A free trade agreement

D. A free trade agreement

Which of the following was NOT listed as a benefit of international trade?

A. Boosts economy

B. Creates efficiency

C. Distributes wealth

D. Improves manufacturing of products

C. Distributes wealth

What is described as a policy in which there is no government regulation and countries may trade as they please?

A. Free trade B. Balance of trade C. Imports D. Exports

A. Free trade

A trade deficit occurs in which of the following situations?

A. When imports and exports are equal

B. When imports are greater than exports

C. When exports are greater than imports

D. When exports and imports are zero

B. When imports are greater than exports

Which of the following is NOT a type of trade barrier?

A. Tariff B. Quota C. Hold D. License

C. Hold

Which of the following is true of tariffs?

A. They are bans on imports or exports in a certain country

B. They are not as common as other types of trade barriers

C. They require the issue of licenses

D. They are different for each country

D. They are different for each country

A tariff which is a percentage of the value of the import is known as which of the following?

A. Specific B. Ad valorem C. Merit D. De facto

B. Ad valorem

Which of the following are used to maintain and manipulate prices as stated in the segment?

A. Quota B. Tariffs C. Subsidies D. Embargoes

A. Quota

As discussed in the segment, what rates are determined freely and the rate will fluctuate day to day?

A. Exchange control

B. Fixed exchange rate

C. Subsidies

D. Flexible exchange rate

D. Flexible exchange rate

Which of the following accurately describes a trade agreement?

A. A temporary pledge of one country to export a product at a specified price for a certain amount of time

B. A contract between countries stating what goods will be purchased at what price, similar to a purchase order

C. An understanding among countries concerning which countries

produce which goods

D. A contractual arrangement among countries concerning trade relationships and policies on trade barriers

D. A contractual arrangement among countries concerning trade relationships and policies on trade barriers

Japan has a surplus of chocolate and decides to sell it in the United States at a price which is lower than the price at which it is sold in Japan. This is known as which of the following?

A. Licensed trade B. Dumping C. Protectionism D. Revenue tariff

B. Dumping

Which of the following countries is NOT a member of NAFTA?

A. Mexico B. United States C. Greenland D. Canada

C. Greenland

What can be described as an agreement among more than two nations who share similar trade interests?

A. Multilateral trade agreements B. Regional trade agreements C. Free trade agreements D. Bilateral trade agreements

A. Multilateral trade agreements

Who took over the General Agreement on Tariffs and Trade in 1994? A. North American Free Trade Agreement

B. World Trade Organization

C. European Union

D. European Free Trade Association

B. World Trade Organization

What are payments made by the government and given to producers to be a contender with competitors?

A. Standards B. Subsidies C. Loans D. Grants

B. Subsidies

Which is NOT one of the reasons international trading is important? A. Expand United States affairs

B. Unrestricted flow of goods

C. Cheaper availability

D. Easier trading practices

A. Expand United States affairs

Which of the following was NOT a goal of the GATT as stated in the presentation?

A. Expand exchange of goods

B. Encourage free trade

C. Regulate and reduce tariffs

D. Eliminate supply and demand

D. Eliminate supply and demand

What does NAFTA stand for?

A. National Agency for Trade Adherence

B. Negotiations Among Foreign Trade Authorities

C. North American Free Trade Agreement

D. Nominally Advised Feasible Trade Attribution

C. North American Free Trade Agreement

. An ad valorem would be considered which of the following?

A. License

B. Embargo

C. Quota

D. Tariff

D. Tariff

How has international trade increased the quality and productivity of manufacturing as stated in the presentation?

A. Higher rate of imports

B. Competition with other countries

C. Increased manufacturing budgets

D. Lower rate of error

B. Competition with other countries

What are items transported into a country from a foreign country?

A. Exports B. Subsidies C. Embargoes D. Imports

D. Imports

Which of the following was listed as a good area for Free Trade Zones?

A. Seaports

B. Borders

C. Embassies

D. Government buildings

A. Seaports

What occurs when one country refuses to buy goods from another country?

A. Quota

B. Ad valorem

C. Boycott

D. Dumping

C. Boycott

When was NAFTA created?

A. 1989 B. 1992 C. 1994 D. 1987

C. 1994