Title: Globalization and Trade
Course: Macro Quiz Test

Q: If a country can produce a good with fewer resources than another country, the first country is said to have a/an ________.
- comparative advantage
- production advantage
- absolute advantage
A: absolute advantage

Q: When one nation can produce a product at lower cost relative to another nation, it is said to have a(n) ________ in producing that product.
- relative advantage
- economy of scale
- absolute advantage
A: absolute advantage

Q: Ghana produces cocoa for chocolate with less land and labor in comparison with all countries. If cocoa labor and cocoa land cost the same in every country, then Ghana has
- a comparative advantage in cocoa production.
- both a comparative and absolute advantage in cocoa production.
- an absolute advantage in cocoa production.
A: an absolute advantage in cocoa production.

Q: Colombia produces coffee with less labor and land than any other country; it therefore necessarily has
- both a comparative and absolute advantage in coffee production.
- an absolute advantage and comparative disadvantage in coffee production.
- an absolute advantage in coffee production
A: an absolute advantage in coffee production

Q: Compare the following answers and select the one which is correct when it comes to comparative and absolute advantage.
- It is possible for a country to produce every good and have an absolute advantage in every good.
- It is not possible for a country to produce every good and have a comparative advantage in every good.
- A country producing products at a lower opportunity cost than other nations has comparative advantage with those products.
A: A country producing products at a lower opportunity cost than other nations has comparative advantage with those products.

Q: Which of the following is true?
- A nation can have a comparative advantage in the production of every good, but not an absolute advantage.
- A nation cannot have a comparative advantage in the production of every good.
- A nation cannot have an absolute advantage in the production of every good.
A: A nation cannot have an absolute advantage in the production of every good.

Q: Julia is an expert with lab experiments in her chemistry class. She is the fastest at reading and comprehending the experiment, setting up the equipment, conducting the experiment, writing notes, making observations, and in cleaning up an experiment. Julia has a(n) ________ in chemistry experiments.
- production advantage
- speed advantage
- absolute advantage
A: absolute advantage

Q: Jethro has a(n) ________ in all aspects of camping: he is faster at carrying a backpack, gathering firewood, paddling a canoe, setting up tents, making a meal, and washing up.
- relative advantage
- opportunity cost
- absolute advantage
A: absolute advantage

Q: Using the same resources, the country of Zanzibarus produces 12 million pounds of beef or 5 million pounds of pork. Zanizibarus has a (n) ________ in beef in contrast with pork production.
- total advantage
- absolute advantage
- comparative advantage
A: comparative advantage

Q: The fictional country of Anastialia is a small country with rich resources in minerals. In an 8 hr work day it can produce 100 pounds of silver or 50 pounds of copper. If Anastialia decides to produce copper instead of silver it is ignoring the fact that its silver production has a (n)________ to copper.
- production advantage
- absolute advantage
- comparative advantage
A: comparative advantage

Q: Assuming that Brazil can produce 100 pounds of beef or 10 autos and the United States can produce 40 pounds of beef or 30 autos, what is the opportunity cost of producing one pound of beef in Brazil?
- 3/4 of an auto.
- 1/5 of an auto.
- 1/10 of an auto.
A: 1/10 of an auto.

Q: Here are alternate outputs from one day's labor input: USA: 12 bushels of wheat OR 3 yards of textiles. India: 3 bushels of wheat OR 12 yards of textiles. The opportunity cost of one bushel of wheat in India is ________.
- 1 yard of textiles
- 12 yards of textiles
- 4 yards of textiles
A: 4 yards of textiles

Q: Argentina can produce 150 pounds of beef or 20 cars; in contrast the United States can produce 90 pounds of beef or 80 cars. Which country has the absolute advantage in producing beef?
- United States
- Neither country has an absolute advantage.
- Argentina
A: Argentina

Q: Here are alternate outputs from one day's labor input: USA: 12 bushels of wheat or 3 yards of textiles. India: 3 bushels of wheat or 12 yards of textiles. From the data, the USA
- has an absolute advantage over India in the production of textiles.
- should export textiles to India.
- has an absolute advantage over India in the production of wheat.
A: has an absolute advantage over India in the production of wheat.

Q: Say that Aliceland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?
- Georgeland has a comparative advantage, but not an absolute advantage, in producing clothing.
- Aliceland has a comparative advantage, but not an absolute advantage, in producing food.
- Aliceland has an absolute advantage, but not comparative advantage, in producing food.
A: Aliceland has an absolute advantage, but not comparative advantage, in producing food.

Q: In India one person can produce 330 pounds of rice or 110 shirts in one year. In China one person can produce 400 pounds of rice or 200 shirts in one year. Which of the following statements is true?
- China has a comparative advantage in the production of rice.
- China has both an absolute and comparative advantage in the production of rice.
- India has a comparative advantage in the production of rice.
A: India has a comparative advantage in the production of rice.

Q: Zenobia can manufacture 4 ships or 20 computers in a week. Meanwhile, in the neighboring country of Azarmidok, 10 ships or 12 computers are produced per week. Which country has the largest opportunity cost to produce a ship and what is the opportunity cost to that country?
- Azarmidok; 5 computers
- Azarmidok; 1.2 computers
- Zenobia; 5 computers
A: Zenobia; 5 computers

Q: Yekutia has the resources to manufacture 320 motorcycles or 570 lawn-mowers per year. The country of Bezanitia, has the capability of producing 230 motorcycles or 410 lawn-mowers per year. Which country has the largest opportunity cost to produce one more motorcycle and what is the opportunity cost to that country?
- Yekutia has the largest opportunity cost to produce an additional motorcycle at 1.78 lawnmower per year.
- Bezanitia has the largest opportunity cost to produce an additional motorcycle at 1.78 lawnmower per year.
- Bezanitia and Yekutia have equal opportunity cost to produce an additional motorcycle at 1.78 lawnmower per year.
A: Bezanitia and Yekutia have equal opportunity cost to produce an additional motorcycle at 1.78 lawnmower per year.

Q: When complimentary trading firms have specialized workers and processes in a particular product, and they engage in intra-industry trade, it creates benefits from working together by creating ________.
- a competitive advantage
- value chain
- innovation and learning
A: innovation and learning

Q: Intra-industry trade between similar trading partners allows the gains from ________ that arise when firms and workers specialize in the production of a certain product.
- comparative advantage
- creating the value chain
- learning and innovation
A: learning and innovation

Q: An economic benefit to engaging in intra-industry trade between countries includes ________.
- diseconomies of scale
- the value chain
- division of labor
A: division of labor

Q: Which of the following is an economic benefit when countries participate in intra-industry trading?
- Diseconomies of scale
- The value chain
- Division of labor
A: Division of labor

Q: An advantage to engaging in intra-industry trade between countries includes ________.
- diseconomies of scale
- the value chain
- economies of scale
A: economies of scale

Q: ________ is one of the prevalent advantages for countries to engaging intra-industry trade.
- Duplication of efforts
- Rising opportunity cost
- Economies of scale
A: Economies of scale

Q: One of the advantages of intra-industry trade is the division of labor which leads to ________.
- increased output and decreased costs
- increases in the value chain
- learning, innovation, and unique skills
A: learning, innovation, and unique skills

Q: What does the benefit of division of labor that comes from intra-industry foster and lead to?
- Decreased costs and increased output
- Value chain increases
- Development of unique skills, innovation and learning
A: Development of unique skills, innovation and learning

Q: A broad reason that intra-industry trade between similar nations produces economic gains involves ________ because it allows producers to supply the market and variety to consumers.
- specialization
- learning
- economies of scale
A: economies of scale

Q: Intra-industry trade provides a way to combine the lower average production costs that come from ________ and still have competition and variety in the market.
- learning
- specialization
- economies of scale
A: economies of scale

Q: Together, intra-industry trade and economies of scale provide ________.
- no variety to consumers
- specialization through machinery
- competition between producers
A: competition between producers

Q: Economies of scale and intra-industry trade combine to produce ________.
- no competition between producers
- specialization through machinery
- variety for consumers
A: variety for consumers

Q: The fictional global firm of Knickerbockers Socks established itself in the international trade industry ten years ago and has been an active participant with intra-industry trade in developed countries. Because of the way Knickerbockers operates, it can take advantage of economies of scale. What do economies of scale make possible for its sock customers?
- A fun website where kids can play games and post pictures of their favorite socks.
- Great marketing campaign which generates more sales in the US.
- A large variety of sock styles and sizes at competitive prices.
A: A large variety of sock styles and sizes at competitive prices.

Q: The large business Paddle Anywhere, Inc. is in the process of creating, with intra-industry trade, better economies of scale for its folding kayak and paddle business. What do you expect better economies of scale in this company could create for its consumers?
- It could reduce the number of other firms in competition with Paddle Anywhere.
- It could increase the prices of Paddle Anywhere’s products as they adopt better business processes.
- It could increase product options and decrease prices of Paddle Anywhere’s products.
A: It could increase product options and decrease prices of Paddle Anywhere’s products.

Q: The large global firm, Hyundai, sells its cars along with other car manufacturers around the globe through intra-industry trading. Hyundai takes advantage of economies of scale by having car plants in various parts of the world. How would Hyundai become more globally competitive through more intra-industry trade and better economies of scale?
- It would make more ad campaigns in a variety of languages in its currently established countries.
- It would offer a streamlined choice of colors for its cars where customer could select between four colors.
- It would expand into new countries and offer more variety to its customers in established markets.
A: It would expand into new countries and offer more variety to its customers in established markets.

Q: If a large firm plans to become more competitive in its market space and has already decreased its production costs using economies of scale, what would happen in relation to its intra-industry trade?
- It would foster less competition by creating a successful marketing campaign in the US.
- It would buy more machinery and equipment to produce its products faster.
- It would work to expand its competitive products into other countries and offer variety to customers.
A: It would work to expand its competitive products into other countries and offer variety to customers.

Q: The reasons that nations trade includes the fact that
- the wants of their citizens exceeds their productive capacity.
- different countries have different levels of greed.
- no one country produces all of what citizens within the country want.
A: no one country produces all of what citizens within the country want.

Q: What is one of the reasons nations trade with each other?
- A country’s ability to produce tends to be equal to what its citizens want.
- Resources are spread out evenly among countries.
- No country can create or produce everything its citizens desire.
A: No country can create or produce everything its citizens desire.

Q: Trade allows each country to take advantage of ________ than the other country.
- economies of scale
- specialization
- lower opportunity costs
A: lower opportunity costs

Q: ________ allows a country to seize the market opportunity and trade with other countries which have easier production and lower cost of certain goods in its marketplace.
- Protectionist policies
- In depth education
- Lower opportunity costs
A: Lower opportunity costs

Q: Free trade results in ________.
- losses from trade
- gains from only exports
- gains from trade
A: gains from trade

Q: Overall, free trade results in ________.
- an increase in price and an decrease in quantity
- a decrease in price and a decrease in quantity
- a decrease in price and an increase in quantity
A: a decrease in price and an increase in quantity

Q: If Canada has a surplus of paper products produced but its consumers demand more cleaning solutions, and the US has an abundance of cleaning solutions but consumers are demanding more paper products, how would trade benefit both countries?
- Trade would assist both countries by creating excess demand.
- Trade would assist both countries by strengthening their natural resources.
- Trade would assist both countries to both reduce excess supply and satisfy market demand.
A: Trade would assist both countries to both reduce excess supply and satisfy market demand.

Q: Guatemala produces an excess supply of coffee but has consumers demanding electronics. Mexico generates a large supply of electronics but its market demands more coffee. What would happen if both countries traded?
- Assist both countries by creating excess supply.
- Assist both countries by strengthening marketplace innovation.
- Assist both countries in reducing excess supply and satisfying market demand.
A: Assist both countries in reducing excess supply and satisfying market demand.

Q: Governments may use protectionist policies to ________.
- Increase political power
- lower incomes of producers
- protect domestic jobs
A: protect domestic jobs

Q: Protectionist policies are used by governments in order to ________.
- Increase political power
- lower incomes of producers
- protect their culture
A: protect their culture

Q: Which of these answers is excluded from being an example of trade barriers?
- tariffs
- import quotas
- lower prices
A: lower prices

Q: An example of a nontariff barrier would be ________.
- import quotas
- lower prices
- safety standards
A: safety standards

Q: The country of Xenia has a small segment of electronics firms that have been building up their expertise over the last two years. This year the country began to have cheap electronic goods from its neighboring country Caladonia, flood over its borders. Xenia’s congress is in session and about to vote on implementing new protectionist policies to restrict electronic imported from Caladonia. Which of these reasons would most deftly support Xenia’s congressional actions?
- Xenia needs to protect itself and build its national defense.
- Xenia needs to protect itself and promote its electronics exports.
- Xenia needs to protect itself and protect its infant electronics industry.
A: Xenia needs to protect itself and protect its infant electronics industry.

Q: Westfalia is a country with a conservative population that bases its culture around traditional values and long cultural traditions. This year Westfalia began to have an increase of electronic media, movies and literature from a neighboring country, Dogoni. Dogoni’s culture is broadly different from Westfalia being more liberal and explicit in its media. Westfalia’s parliament is now passing new protectionist policies to restrict or ban electronic media, movies and literature from Dogoni. What reason would most rationally support Westfalia’s government actions?
- Westfalia needs to protect itself and promote its mixed media exports.
- Westfalia needs to protect itself and create a level playing field for its own mixed media industry.
- Westfalia needs to protect itself and build its national defense.
A: Westfalia needs to protect itself and build its national defense.

Q: The Metal Works company receives subsidies from its government to produce its goods. When the Metal Works company generates surplus and begins to export around the world, what may it encounter when trying to sell to countries other than its own country?
- free trade with all other countries with no restrictions
- import quotas from its own government
- protectionist policies in other countries
A: protectionist policies in other countries

Q: If a firm was receiving subsidies from its government to produce and lower its operating costs, what may happen when going to sell its products to other countries?
- No restrictions and free trade with all other countries in a competitive environment.
- Import quotas from its own government allowing it to only produce a certain amount..
- Other countries enacting protectionist policies to protect their own countries goods.
A: Other countries enacting protectionist policies to protect their own countries goods.

Q: Assume that the U.S. produces mangoes in California and also imports them from India. India produces mangoes at a lower cost. Instead of a free trade environment in the U.S., a quantity quota is imposed by the U.S. government. The quota on mangoes from India will
- lower the price of mangoes in the U.S., and lower the quantity of mangoes sold in the U.S.
- keep the price of mangoes the same in the U.S., and increase the quantity of mangoes.
- lower the price of mangoes in the U.S., and increase the quantity of mangoes sold in the U.S.
A: lower the price of mangoes in the U.S., and increase the quantity of mangoes sold in the U.S.

Q: The U.S. produces strawberries in Oregon, but also imports strawberries from Chile. The production costs are lower for strawberries from Chile. Instead of a free trade environment in the U.S., the U.S. government has imposed a value quota. What will the quota on strawberries from Chile do to the U.S. market?
- Lower the price of strawberries in the U.S., and lower the quantity of strawberries sold in the U.S.
- Keep the price of strawberries the same in the U.S., and increase the quantity of strawberries.
- Lower the price of strawberries in the U.S., and increase the quantity of strawberries sold in the U.S.
A: Lower the price of strawberries in the U.S., and increase the quantity of strawberries sold in the U.S.

Q: The U.S. has been importing baby toys from China, but this year kids are getting sick from these toys. After testing the toys high dosages of lead are found in the paint used on these toys. The U.S. government now bans the import of these baby toys from China until they are deemed safe again. This is an example of a ________.
- tariff barrier
- quantity quota barrier
- nontariff barrier
A: nontariff barrier

Q: The European Union (EU) has been importing beef from the U.S. for decades, but over the last decade the U.S. has ramped up its genetically modified beef program. There has been not enough testing on the effects of this change to cows over a significant length of time so the EU now bans the import of beef from the U.S. What is this an example of with regards to protectionism?
- a tariff barrier
- a value quota barrier
- a nontariff barrier
A: a nontariff barrier

Q: An example of a tariff would be ________.
- rules and regulations placed on a good
- a limit on the number of a good imported into a country
- a tax on an imported good
A: a tax on an imported good

Q: Which of the following is an example of a tariff?
- The regulations and rules placed on a good.
- A limit on the way a good is produced before it is imported into a country.
- The tax on an imported good.
A: The tax on an imported good.

Q: Which area in the graph below illustrates the loss to domestic shoe producers if the government decided against placing a tariff on foreign shoes?
- C
- C+F
- B+C
A: B+C

Q: Which area in the graph below illustrates the gain to domestic shoe producers as a result of a government placing a tariff on foreign shoes?
- B+C
- C+F
- C
A: C

Q: Use the graph below to identify the loss to consumers from the tariff on foreign shoes.
- F+G
- F+D+E+G
- C+F+D+E+G
A: C+F+D+E+G

Q: Use the graph below to identify the government revenue from the tariff on foreign shoes.
- D
- F+D+E+G
- D+E
A: D+E

Q: Over time, the average worker gains from reduced trade barriers through ________.
- more choices and greater variety
- lower productivity and lower wages
- greater productivity and higher wages
A: greater productivity and higher wages

Q: Over time, the average consumer will be better off from reduced trade barriers by ________.
- greater productivity and higher wages
- less variety and higher prices
- greater variety and lower prices
A: greater variety and lower prices

Q: International trade policies benefiting from specialization and comparative advantage can make the average worker better off, but a tradeoff is ________.
- worker productivity could go down
- consumers could pay more for products
- workers could lose their jobs
A: workers could lose their jobs

Q: What is the tradeoff for the average worker when it comes to international trade policies in specialization and comparative advantage?
- There is the possibility that the productivity of workers could go down.
- There is the possibility that consumers would pay more for products.
- There is the possibility that workers could be laid off from their job.
A: There is the possibility that workers could be laid off from their job.

Q: An example of a disruptive market change is ________.
- a new type of automobile
- a new brand of cereal
- new technology
A: new technology

Q: Which of the following is an example of a disruptive market change?
- a new type of motorcycle
- a new brand of oatmeal
- new technology
A: new technology

Q: The island country of Mauritius is small but has lowered its barriers for international trading partners. Its location in the Indian ocean is close to Madagascar and the African continent. Mauritius trades between countries close by, and larger countries such as India. How does Mauritius benefit from lowering its trading barriers?
- Its economy produces all the goods and services the country requires and thus helps the local business grow.
- It maintains a very high standard of living because of the domestic dominance over other products and services.
- Workers and companies can now specialize in competitive areas because other goods and services are imported through international trade.
A: Workers and companies can now specialize in competitive areas because other goods and services are imported through international trade.

Q: The small country of Benin has many international trading partners between not only countries close by, but also larger countries such as the U.S. What is one of the benefits that Benin receives from lowering its trading barriers?
- The economy needs to produce goods and services that the country requires.
- It receives a fixed quantity of goods and services which supply the population by limiting the number of goods and services available.
- Workers and firms in the country can now specialize in areas because other goods and services are found through trade.
A: Workers and firms in the country can now specialize in areas because other goods and services are found through trade.

Q: In 1995, the General Agreement on Tariffs and Trade (GATT) was transformed into ________.
- the Sherman Agreement
- the Tariff Organization
- the World Trade Organization (WTO)
A: the World Trade Organization (WTO)

Q: Which of the following organizations was created from the General Agreement on Tariffs and Trade (GATT)?
- The United Nations (UN)
- The International Trade Organization (ITO)
- The World Trade Organization (WTO)
A: The World Trade Organization (WTO)

Q: The General Agreement on Tariffs and Trade (GATT) was started in ________.
- 1946
- 1950
- 1947
A: 1947

Q: When year did the General Agreement on Tariffs and Trade (GATT) begin?
- 1948
- 1945
- 1947
A: 1947

Q: The General Agreement on Tariffs and Trade (GATT) helps promote trade by ________.
- increasing quotas
- increasing rules and regulations
- reducing tariffs
A: reducing tariffs

Q: The General Agreement on Tariffs and Trade (GATT) helps promote trade by
- increasing tariffs
- increasing rules and regulations
- decreasing quotas
A: decreasing quotas

Q: The role of the General Agreement on Tariffs and Trade (GATT) is to
- negotiate the price of natural resources around the world.
- come up with a set price each year for a basket of agreed upon goods and services.
- negotiate agreements between nations to reduce trade barriers.
A: negotiate agreements between nations to reduce trade barriers.

Q: What is the General Agreement on Tariffs and Trade (GATT) role?
- To negotiate the price of oil around the world.
- To impose minimum price for a basket of goods anywhere in the world.
- To negotiate agreements between trading nations in order to reduce barriers to trade.
A: To negotiate agreements between trading nations in order to reduce barriers to trade.

Q: The precursor to the World Trade Organization (WTO) was the ________.
- Tariff Organization
- Rules and Regulation Board
- General Agreement on Tariffs and Trade (GATT)
A: General Agreement on Tariffs and Trade (GATT)

Q: What preceded the World Trade Organization (WTO) which lead to its organization?
- United Nations
- North American Free Trade Agreement
- General Agreement on Tariffs and Trade (GATT)
A: General Agreement on Tariffs and Trade (GATT)

Q: The World Trade Organization (WTO) was established in ________.
- 1993
- 1994
- 1995
A: 1995

Q: In what year was the World Trade Organization (WTO) established?
- 1994
- 1997
- 1995
A: 1995

Q: The World Trade Organization (WTO) was established to ________.
- let trade disputes resolve themselves
- end the intention of the General Agreement on Tariffs and Trade (GATT)
- enforce General Agreement on Tariffs and Trade (GATT)
A: enforce General Agreement on Tariffs and Trade (GATT)

Q: The World Trade Organization (WTO) was established to ________.
- let trade disputes resolve themselves
- end the intention of the General Agreement on Tariffs and Trade (GATT)
- host trade disputes
A: host trade disputes

Q: What is the purpose of the World Trade Organization (WTO) ?
- To advise the United Nations on international political policies.
- To broker trade agreements between the worlds largest international companies.
- To bring all sizes of nations together to negotiate trade deals and resolve trade disputes between each other.
A: To bring all sizes of nations together to negotiate trade deals and resolve trade disputes between each other.

Q: Which of the following best fits an explanation of why the World Trade Organization (WTO) was established?
- Bring small nations together to negotiate trade deals strictly between each other.
- Bring large nations together to negotiate trade deals strictly between each other.
- Bring all sizes of nations together to negotiate trade deals between each other.
A: Bring all sizes of nations together to negotiate trade deals between each other.

Q: An example of a regional trade agreements is ________.
- WTO
- GATT
- NAFTA
A: NAFTA

Q: An example of a regional trade agreements is ________.
- United Nations
- World Trade Organization
- Southern African Development Community
A: Southern African Development Community

Q: Why are some economists who favor free trade concerned about the proliferation of regional trade agreements?
- Regional trade agreements make the economies of partner nations more independent from each other.
- Regional trade agreements terms can conflict with those of the Anti-Tariff Act.
- Regional trade agreements may limit trade from outside the regions in an agreement.
A: Regional trade agreements may limit trade from outside the regions in an agreement.

Q: If an economist is a proponent of free trade amongst nations, what would be concerning about the proliferation of regional trade agreements?
- The nations involved with regional trade agreements make the economies more independent from each other.
- Terms of regional trade agreements often conflict with agreements of the Anti-Tariff Act.
- Regional trade agreements may restrict trade from outside of the regions in the agreement.
A: Regional trade agreements may restrict trade from outside of the regions in the agreement.

Q: An example of a regional trading agreement is the ________.
- WTO
- GATT
- European Union
A: European Union

Q: An example of a regional trading agreement is the ________.
- WTO
- GATT
- Asia Pacific Economic Cooperation (APEC)
A: Asia Pacific Economic Cooperation (APEC)

Q: What makes a regional trading agreement so significant to the countries involved within the agreement parameters?
- It may cause the countries not involved to stop importing goods with the countries involved in an agreement.
- It might dampen the free market forces within countries external to the agreement.
- It can eliminate barriers to the mobility of goods, labor, and capital across the countries involved in the agreement.
A: It can eliminate barriers to the mobility of goods, labor, and capital across the countries involved in the agreement.

Q: For countries participating in a regional trading agreement, what makes this type of agreement significant to the countries involved?
- It may cause countries uninvolved in the agreement to maintain importing goods with the countries involved in an agreement.
- It might dampen the free market forces within each of the countries not associated with the agreement.
- Its purpose is to eliminate barriers to the movement of labor, goods, and capital across those countries involved in it.
A: Its purpose is to eliminate barriers to the movement of labor, goods, and capital across those countries involved in it.

Q: Generally, international trade laws in the last 60 years have served to
- limit the gains of trade to consumers.
- increase economic autarky.
- radically lower tariffs.
A: radically lower tariffs.

Q: In the past 60 years, what have international trade laws tried to do?
- Set limits on gains of trade to consumers.
- Increase economic self sufficiency.
- Dramatically lower tariffs.
A: Dramatically lower tariffs.

Q: What Unites States government department determines if imports from other countries are being traded fairly?
- Department of Trade
- International Trade Commission
- Department of Commerce
A: Department of Commerce

Q: The ________ determines if imports from other countries are being fairly traded in the U.S.
- Trade Department
- World Trade Organization
- Department of Commerce
A: Department of Commerce

Q: The last half-century has been the powerful surge of international trade due to ________.
- GATT renegotiations
- reversals of regional trade agreements
- technological developments
A: technological developments

Q: What has been the main cause in the last half-century for the skyrocking of international trade?
- Renegotiations of GATT
- Regional trade agreements cancellations
- Developments in technology
A: Developments in technology

Q: A common complaint with trade policies is the act of ________.
- value chaining
- marginalizing
- dumping
A: dumping

Q: What is commonly viewed about trade policies as a very negative aspect of international trade?
- The emergence of value chaining.
- The process of marginalizing.
- The act of dumping.
A: The act of dumping.

Q: Looking at historical trends, what would you say is a long term trend in trade policies?
- Fewer investigations by the Commerce Department in the U.S.
- The WTO working with a faster policy decision making time frame.
- Tariffs continue to be reduced over time.
A: Tariffs continue to be reduced over time.

Q: Which of the following long term trends would most likely take place in the future of trade policies based on the past trade trends?
- There would be fewer investigations by the Commerce Department in the U.S.
- The WTO would make quicker decisions on policies.
- Overall tariffs would continue to be reduced over time.
A: Overall tariffs would continue to be reduced over time.