Trade Agreements — Unit test Answers

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1
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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
3
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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

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.
5

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
6

Which trade organization is responsible for 90% of the world’s trade?

A
the EU
B
ASEAN
C
the WTO
D
NAFTA
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

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.
9

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.
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.

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