International Trade Quiz
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Questions and Answers

Which of the following best describes international trade?

  • The exchange of goods and services between different countries (correct)
  • The exchange of goods and services within a country
  • The exchange of goods and services between neighboring countries
  • The exchange of goods and services within a continent
  • What are some reasons for international trade?

  • To increase trade barriers and restrictions
  • To reduce demand in new markets
  • To meet the demand for new products that cannot be supplied domestically (correct)
  • To limit the movement of products
  • How does international trade affect the balance of trade?

  • It has no impact on the balance of trade
  • It always produces a favorable result for all countries involved
  • It always produces an unfavorable result for all countries involved
  • It may produce a favorable result for some countries and an unfavorable result for others (correct)
  • What is one factor that influences differences in production costs?

    <p>Economic policies</p> Signup and view all the answers

    What happens when trade barriers and restrictions are removed?

    <p>More products are moved</p> Signup and view all the answers

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