International Trade

Question 1

When imported goods grow cheaper in the US, it is a sign that the value of the dollar is likely __________.

Revolt · Accepted Answer

rising

Question 2

Exchange rates show the value of one country’s currency in relation to other countries’__________.

Revolt · Accepted Answer

currencies

Question 3

NAFTA is a 1994 __________ between the United States, Mexico, and Canada.

Revolt · Accepted Answer

free trade agreement

Question 4

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 __________.

Revolt · Accepted Answer

quota

Question 5

Why are quotas an example of protectionism?

Revolt · Accepted Answer

Quotas create trade barriers by limiting imports.

Question 6

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

Revolt · Accepted Answer

T

Question 7

Which of the following results is NOT a way that trade can benefit all parties involved?

Revolt · Accepted Answer

Trade can keep countries from specializing in producing certain goods.

Question 8

Which of the following situations would most likely occur if the dollar’s exchange value dropped in relation to the Japanese yen?

Revolt · Accepted Answer

Imported Japanese goods would become more expensive.

Question 9

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

Revolt · Accepted Answer

F

Question 10

The British pound, the yen, and the euro are examples of __________.

Revolt · Accepted Answer

currencies

International Trade Answers

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