Trade Agreements — Unit test Answers

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1
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Who decides which currency each country in the world uses?

A
the United Nations
B
each individual country
C
the European Union
D
the United States
2
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Globalization leads to more trade between

A
consumers.
B
businesses.
C
factories.
D
countries.
3

Which group primarily helps settle trade disputes?

A
European Union
B
World Trade Organization
C
Association of Southeast Asian Nations
D
North American Free Trade Agreements
4

Why do countries provide financial incentives?

A
Financial incentives act as trade barriers.
B
Financial incentives limit imports.
C
Financial incentives set standards.
D
Financial incentives restrict all trade.
7

Which is the best example of outsourcing?

A
A US shoe company opens a factory in China and hires Chinese workers to make shoes.
B
A US shoe company opens a factory in the US and hires US workers to make shoes.
C
A US shoe company opens a factory in the US and hires Chinese workers to make shoes.
D
A Chinese shoe company opens a factory in China and hires Chinese workers to make shoes.
8

Which of these statements most accurately describes currencies in North America?

A
All countries in North America use the US dollar.
B
All countries in North America use the euro.
C
North American countries have done away with separate currencies.
D
Each country in North America uses its own currency.
11

Trade agreements are helpful because they allow countries to

A
trade for necessary goods.
B
increase trade tax revenue.
C
influence foreign trade.
D
help create new trade barriers.
13

Which group directly benefits from subsidies?

A
exporters
B
sellers
C
producers
D
importers
15

According to this quotation, what did President Ronald Reagan believe about economic growth?"We should be trying to foster the growth of two-way trade, not trying to put up roadblocks, to open foreign markets, not close our own.”

A
Increased trade barriers would help the economy.
B
Free trade associations would limit competition.
C
Increased fair trade would help the economy.
D
Trade barriers would help make trade more fair.
17

Which best describes why countries establish limits on international trade? Choose three answers.to force domestic industries to sell higher quality goodsto restrict foreign influence in a sectorto restrict importation of a foreign goodto lower the price of foreign goodsto punish other countries

A
to force domestic industries to sell higher quality goods
B
to restrict foreign influence in a sector
C
to restrict importation of a foreign good
D
to lower the price of foreign goods
E
to punish other countries
18

Why were free trade zones created in China?

A
to avoid governmental rules and conditions
B
to attract investments by foreign countries
C
to import technology more easily
D
to control imports and exports
19

Tariffs and subsidies are both examples of

A
monetary restrictions for the domestic producer.
B
economic benefits for the consumer.
C
economic benefits for the international producer.
D
incentives—one positive and one negative.
20

How have airplanes changed the way the world does business? Choose four answers.by shipping raw materials to manufacture goods in other countriesby shortening travel timeby opening up new trade markets worldwideby connecting business partners the fastestby increasing options for travel destinations

A
by shipping raw materials to manufacture goods in other countries
B
by shortening travel time
C
by opening up new trade markets worldwide
D
by connecting business partners the fastest
E
by increasing options for travel destinations
21

The business practice of hiring workers in another country is known as

A
globalization.
B
insourcing.
C
subcontracting.
D
outsourcing.
23

Gross Domestic ProductGrowth Dependence PolicyGained Domestic Production

A
Gross Domestic Product
B
Growth Dependence Policy
C
Gained Domestic Production

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Trade Agreements — Unit test Answers — OC27…