Trade Trends Quiz
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Questions and Answers

What does the term 'trend of trade' refer to?

  • The general direction in which a country's imports and exports are moving over time (correct)
  • The average cost of transportation for goods in global trade
  • The specific tariffs applied to certain types of goods in international trade
  • The total value of a country's imports and exports in a given year
  • What can be inferred from a positive trend of trade for a country?

  • The country is facing trade deficits and increasing debt
  • The country is imposing stricter import restrictions
  • The country is experiencing a decrease in consumer demand for foreign goods
  • The country's economy is growing and becoming more competitive in the global market (correct)
  • How can a negative trend of trade impact a country's economy?

  • It leads to a surplus in the balance of trade
  • It encourages foreign investment and technological innovation
  • It often results in increased government revenue from tariffs
  • It may lead to a decrease in domestic production and employment (correct)
  • How does a deficit in the balance of payments affect a country's currency value?

    <p>It may cause the country's currency to depreciate</p> Signup and view all the answers

    What does the financial account of the balance of payments measure?

    <p>Foreign direct investment and portfolio investment</p> Signup and view all the answers

    What does a surplus in the balance of payments indicate?

    <p>The country is exporting more than it is importing</p> Signup and view all the answers

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