Challenges of International Trade

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What is the primary factor that contributes to public resistance to foreign trade?

Inability of companies to adapt to the global economy

Pressure from companies and individuals on politicians

All of the above (correct)

Lack of understanding about the overall benefits of trade

What is the motivation behind companies and individuals attempting to influence trade policy?

To protect domestic jobs from foreign competition

To make their own organizations more competitive in the domestic market (correct)

To increase government revenue through tariffs

To promote free trade and open markets

What is the primary focus of the chapter mentioned in the passage?

The political pressure on governments to implement trade restrictions

The impact of trade on the global economy

Ways in which governments restrict their own nation's trading practices (correct)

The overall benefits of trade

According to the passage, which of the following is true about a government's ability to restrict trade?

A government can't stop other people around the world from trading with a banned nation Signup and view all the answers

What is the relationship between the overall gains and economic improvements created through trade, and the public resistance to foreign trade?

The public resistance is a result of both the overall gains and the inability to adapt to the global economy Signup and view all the answers

What is the primary purpose of the passage?

To discuss the role of governments in restricting their own nation's trading practices Signup and view all the answers

How do trade barriers contribute to volatility in global markets?

By increasing uncertainty and leading to higher volatility in asset prices and exchange rates Signup and view all the answers

Which of the following is an example of a trade barrier mentioned in the passage?

Tariffs on imported goods Signup and view all the answers

How can inadequate infrastructure act as a trade barrier?

By hindering the flow of goods and services across borders Signup and view all the answers

What was a consequence of the tariffs imposed during the U.S.-China trade conflict?

Increased volatility in asset prices Signup and view all the answers

Why can trade barriers make regional trading more expensive than trading globally in developing countries?

As a result of poor infrastructure and inefficient border procedures Signup and view all the answers

Which factor leads to the increase in volatility of asset prices during periods of trade barriers?

Increase in uncertainty due to trade barriers Signup and view all the answers

According to the passage, what can inadequate infrastructure in some countries lead to?

All of the above Signup and view all the answers

What is the primary aim of trade-facilitation measures?

To improve the efficiency of international trade Signup and view all the answers

How do trade-facilitation measures help in reducing volatility in global markets?

By improving the ease of doing business across borders Signup and view all the answers

According to the passage, what is crucial for policymakers and businesses?

Understanding the relationship between volatility and trade barriers Signup and view all the answers

What is the ultimate goal of addressing trade barriers effectively, according to the passage?

To promote economic growth and stability Signup and view all the answers

Challenges of International Trade

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