International Trade Quiz: Test Your Knowledge of Global Trade

Study Notes

Advantages of International Trade

Countries engage in international trade due to unequal distribution of natural resources and to increase production, raising people's standard of living.
International trade provides cheaper goods and services for customers and makes better goods and services available in the market.
It allows countries to specialize in producing goods and services they are good at, through comparative advantage.
International trade leads to more competition, providing goods and services with the best quality and price.
It provides more job opportunities for members of both countries involved.
Easy transfer of technology from developed to developing countries is facilitated through international trade.
Countries can reduce production costs by transferring production to another country.

Disadvantages of International Trade

A country might become overdependent on other countries' products or services, reducing demand in the local market.
New local companies may struggle to compete against bigger countries with stronger markets.
Foreign companies may exploit a country's natural resources, leaving the country worse off after they leave.

International Trade Law

A set of laws and agreements that manage and supervise international trade between countries.
Countries and businesses must follow these rules and regulations to conduct trade correctly across borders.

Types of International Trade

Export trade: countries provide goods and services to other countries.
Import trade: countries buy goods or services from other countries to resell in the local market.
Re-export trade: a combination of export and import trade, involving importing products from one country and exporting them to another for profit.

Description

Explore the concept of international trade and its impact on economies. Learn how countries benefit from trading with each other, expanding markets, and providing competitive prices for consumers. Understand how international trade can influence the world economy.