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Free trade and protectionism Flashcards | StudBud
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Free trade and protectionism
Free trade and protectionism
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Answers
1
What is the major trade benefit of contract manufacturing?
lower wages
higher wages
2
Trade disputes occur when?
2 companies cannot agree on a price
2 companies in the U.S. want to export the same product
2 Nations want to export the same product
Nations restrict trade with each other
3
A trade agreement is
a unique rule to help countries trade more easily together.
The human effort that goes into producing goods and services
the sum of all economic activities of citizens in one year.
the agreement to regulate the exchange of goods and services
4
Free trade?
Opens new markets in other countries
Forces companies to produce low quality goods
Creates hostility among nations
Causes a loss of jobs at home
5
Free trade is sometimes criticized for...
lowering worker wages.
providing cheaper goods and services.
promoting "Americanization" of culture.
promoting cooperation between countries.
6
Free trade is based on the principle
Comparative advantage
Competitive scale
Economies of advantage
Production possibility advantage
7
Which of the following is NOT a form of protectionism?
Export subsidies
Tariff
Subsidy on domestic production
Health standards
8
What's protectionism
Protecting local industries from foreign competition
Trying sustain and maintain a certain rate of trade
9
What is protectionism?
An economic strategy to maintain trade at the same level.
An economic strategy to limit trade.
An economic strategy to abolish trading.
An economic strategy to promote trade.
10
Which of the following is NOT a reason for protectionism?
National security
The preservation of employment
To end a recession
The correction of a current account deficit
11
How does foreign aid sometime
conflict
with foreign trade?
The aid could go towards building foreign relationships.
A developing country using food aid may ruin their economy.
A country could not use the help to grow themselves.
12
Motivation for trade
Child Labour
Less Expensive Goods
International Corruption
Better Goods
13
Which would a supporter of free trade most likely support?
Job protection legislation
Cross country embargos
Reducing tariffs
C for Cedd this time... #nahfr
14
Trade is always
In favor of one party more than another
Mutually beneficial
A political endeavor
For concrete goods
15
The North American Free Trade Agreement...
Stood a shift the Western counterpart to the Warsaw Act
Eliminated tariffs among the U.S., Canada, and Mexico
Was never agreed to
Raised tariffs in Canada
16
GATT was an international agreement to open trade markets and promote global free trade.
False
True
17
What is a negative effect of trade?
Jobs will become more available in the world
A country can outsource their products to a global market
Goods can be created more efficiently
It could disrupt local economies
18
The World Trade Organization was founded...
To promote protectionism
To bring order to international trade
To end international trade and globalization
To combat terrorism
19
What is an often-cited benefit of free trade?
Reduced environmental impact
Universalization of religion
Cheaper goods and services
Creation of jobs
20
Protectionism?
The average number of immigrants allowed to enter a country.
Protecting local industries by limiting abroad competition.
Hiring independent outside workers to do company work.
The name given to the borders separating Communist.
21
Protectionism use barriers to free trade to protect a country's own domestic industries.
True
False
22
A bilateral preferential trade agreement is...
Any trade agreement between two countries
A free trade agreement between two countries
A customs union between two countries
Any trade agreement between two or more countries
23
To reduce limits on trade?
Companies sell products illegally on the black market
Nations reduce their comparative advantage
Nations form trade alliances
Governments enact embargos
24
Protectionism is the opposite of what?
free trade
new trade
25
The WTO doesn't promote sustainable growth because promoting free trade
makes people worse off in the long run
still creates a business (or trade) cycle
always leaves some protectionism
ignores externalities
26
Critics of the World Trade Organization point to which of these as a
failure
of free trade?
Canada-U.S. softwood lumber dispute
the trickle-down effect
Canada's failure to meet foreign aid promises
Anglo-American invasion of Iraq
27
Countries need to trade because they do not have the same _________ .
geography
resources
governments
people
28
Why does the government benefit from protectionism?
Less cultural interaction and globalization
Nationalism
Tariff revenue
It increases the demand for exclusive goods
29
Why protectionism?
Protects domestic employment
Promotes cheap foreign labor
Promotes matured industries
It tricks other countries into overspeculation
30
What is NOT an example of free trade?
WTO
GATT
NAFTA
Tariffs
31
Which is NOT an argument against protectionism......
It raises domestic prices
If the industry is efficient it doesn't need protection
It supports local jobs
It supports inefficient industries
32
Which of the following is
NOT
an advantage of free trade?
Over-specialisation on a single primary good
Greater allocative efficiency in the macro-economies
Greater choice of goods
Lower prices on goods
33
A free trade area or agreement removes all tariffs between members and...
Sets common health and safety standards
Has fixed exchange rates between members
Sets a common tariff to other countries
Allows each member to set their own tariffs
34
Free trade and this concept are opposing points of view in trade disputes
Foreign Exchange Market
Free Trade
Stock Market
Protectionism
35
How does protectionism affect choice?
Exotic Choice
Different Choice
Wider selection of goods to choose
Narrower selection of goods to choose
36
A trade deficit is:
More exports than imports
When you don't trade anything
You trade too much
More imports than exports
37
What is Free Trade?
Trade where there are no restrictions
Trade that does not require any money exchange
Trade that happens strictly on a local basis.
Trade that happens strictly on an intercontinental basis.
