International Trade Quiz: Test Your Knowledge of Global Trade

Questions and Answers

More job opportunities for members of both countries

A country becoming overdependent on other countries' products or services

To manage and supervise the trade taking place between countries

The positive effects are greater than the negative effects Signup and view all the answers

To reduce production costs Signup and view all the answers

To provide goods and services that are unavailable or too expensive in a country Signup and view all the answers

A country selling agricultural products to other nations Signup and view all the answers

It enables countries to specialize in producing goods and services they are good at Signup and view all the answers

Importing goods from one country and exporting them to another country for profit Signup and view all the answers

A country that specializes in re-export trade Signup and view all the answers

Study Notes

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.

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.

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.

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.