Globalization Answers

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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.
3

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
4

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.
5

One primary purpose of the European Union is to

A
create a common market.
B
eliminate borders between countries.
C
allow highly skilled workers to be employed.
D
limit trade among member countries.
6

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.
7

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.
8

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.
9

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
10

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.
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

The primary benefit of a Free Trade Agreement is that they

A
allow countries to charge high tariffs on imports and exports.
B
allow countries to more easily buy what they do not produce.
C
have fewer economic restrictions than trade organizations.
D
can fund international finance projects.

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