6.5 Trade Agreements Answers

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1
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What is one stated purpose of the World Trade Organization?

A
to create a common currency
B
to encourage the expansion of exports
C
to monitor trade policies of many countries
D
to establish direct trade agreements between countries
2
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One primary purpose of the European Union is to

c
create a common market.
e
eliminate borders between countries.
a
allow highly skilled workers to be employed.
l
limit trade among member countries.
4

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.
6

What can be a result of free trade? Check all that apply.trade imbalancesdecreased productionlower economic growthincreased pollutionexploitation of workersnew opportunities

A
trade imbalances
B
decreased production
C
lower economic growth
D
increased pollution
E
exploitation of workers
F
new opportunities
7

What is the most common reason why countries create trade agreements?

A
to limit imports
B
to create free trade
C
to establish quotas
D
to decrease trade
8

Countries establish internal economic zones in order to

l
limit foreign investment.
m
make solving disputes easier.
h
have fewer economic restrictions.
c
create manageable amounts of imports.
9

International trade organizations promote free trade by encouraging countries to

A
maintain their tariffs.
B
establish their trade quotas.
C
reduce their trade barriers.
D
develop their products.
10

most likely

F
Free trade helps every nation.
F
Free trade has drawbacks for participants.
F
Free trade will eliminate poverty.
F
Free trade must be carefully monitored.
11

How do trade agreements of international organizations affect trade?

A
by incentivizing the development of trade policies
B
by eliminating tariffs and taxes on imports and exports
C
by encouraging countries to provide open access to trade
D
by helping smaller countries compete in the world market
12

Trade agreements can cause jobs to go to countries that provide those jobs

A
efficiently.
B
expensively.
C
freely.
D
gradually.
13

A specific territory or zone that has laws and regulations different from the rest of the country is called a(n)

A
work zone.
B
border zone.
C
tax-free zone.
D
economic zone.
14

How can a nation benefit from effectively exporting its goods?

A
Its citizens can buy cheaper goods.
B
Its businesses can invest in the future.
C
Its domestic spending increases.
D
Its citizens have more money.
15

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
16

International trade organizations promote free trade by encouraging countries to

A
maintain their tariffs.
B
establish their trade quotas.
C
reduce their trade barriers.
D
develop their products.
17

What is one reason two countries may sign a treaty to create a direct agreement with one another?

A
to establish barriers to trade
B
to cut taxes
C
to collect more taxes
D
to limit trade opportunities for competing companies
18

A treaty that can be signed between two or more countries to lower tariffs and improve the import and export of goods is a free trade .

Answer not available
19

Read the following quotation by President Bill Clinton."Free trade can be a win-win for everyone, but only if it is based on fair rules, enforced faithfully, with adequate safeguards to protect the rights of workers and the environment.” With which statement would President Bill Clinton most likely have agreed?

A
Free trade helps every nation.
B
Free trade has drawbacks for participants.
C
Free trade will eliminate poverty.
D
Free trade must be carefully monitored.
20

Which best describes ASEAN?

A
an international organization promoting free trade
B
a regional organization promoting growth in Southeast Asia
C
an international organization trying to establish a common currency
D
a regional organization establishing free trade between Canada and Mexico

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