International Trade Answers

When imported goods grow cheaper in the US, it is a sign that the value of the dollar is likely __________.A.risingB.falling slowlyC.remaining constantD.falling quickly

Exchange rates show the value of one country’s currency in relation to other countries’__________.A.exportsB.quotasC.currenciesD.tariffs

NAFTA is a 1994 __________ between the United States, Mexico, and Canada.A.free trade agreementB.quotaC.tariffD.exchange rate

The United States decides it wants to encourage citizens to buy televisions that are made in America, so it decides to set a limit on the number of televisions that can be imported from China and Japan. This limit is an example of a __________.A.tariffB.free trade agreementC.trade unionD.quota

Why are quotas an example of protectionism?A.Quotas increase the volume of trade.B.Quotas remove restrictions on trade.C.Quotas create trade barriers by limiting imports.D.Quotas ignore the needs of domestic industries.

The ability to make a product cheaply would encourage a country to produce and export it.

Which of the following results is NOT a way that trade can benefit all parties involved?A.Trade can encourage economic growth for both sides that participate.B.Trade can help citizens enjoy higher standards of living.C.Trade can provide a greater variety of goods and services for all parties.D.Trade can keep countries from specializing in producing certain goods.

Which of the following situations would most likely occur if the dollar’s exchange value dropped in relation to the Japanese yen?A.US citizens would be able to travel to Japan more cheaply.B.Imported Japanese goods would become more expensive.C.The US would export fewer products to Japan.D.Fewer Japanese tourists would travel to the US.

Countries create quotas and tariffs in order to increase the volume of trade with their neighbors.

The British pound, the yen, and the euro are examples of __________.A.exchange ratesB.currenciesC.tariffsD.quotas