Trade Exchange And Interdependence Quiz 14 (20 MCQs)

Quiz Instructions

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1. Which countries are most directly affected by NAFTA?

Correct Answer: A) The United States, Canada, and Mexico.

2. What was the results of merchants and traders reinvesting more money into other enterprises?

Correct Answer: D) Businesses across Europe grew and flourished.

3. The main benefits of free trade include

Correct Answer: A) Peace, better choice, prices and quality.

4. When the exchange rate rises what happens to the demand for imports?

Correct Answer: A) It rises.

5. Why did the Chinese decide to interact with their European neighbors?

Correct Answer: C) They each wanted goods and rare material from each other.

6. A ban on trade with a particular country.

Correct Answer: B) Embargo.

7. When a country has the ability to produce more of a product relative to another country.

Correct Answer: A) Absolute Advantage.

8. Which of the following is most directly affected by an embargo established by the United States?

Correct Answer: B) U.S. exports.

9. Which was traded from the Old World to the New World?

Correct Answer: A) Horses and major diseases.

10. Which of the following is one of the negative effects of global trade?

Correct Answer: A) Spread of diseases.

11. If there is high inflation in the UAE what would happen the value of the Dirham and GDP?

Correct Answer: D) Decrease, decrease.

12. Focusing on a narrow range of products/services that can be produced most efficiently and cost-effectively

Correct Answer: B) Specialization.

13. In 2010, China announced that it would impose and import a tax on American poultry of up 105.4 percent.

Correct Answer: A) Tariff.

14. What is the increase in the value of a currency?

Correct Answer: D) Appreciation.

15. The Silk Road crossed .....

Correct Answer: D) Africa, Europe, and Asia.

16. Interest rates in Japan have increased and are now higher than US interest rates. What would happen the value of the dollar?

Correct Answer: B) It would decrease.

17. The exchange of goods and services without the use of money .....

Correct Answer: D) Barter.

18. Which type of country is likely to have the biggest surplus in invisible trade?

Correct Answer: C) Developed country.

19. The ..... was the most important animal that Europeans brought to the New World.

Correct Answer: B) Horse.

20. Some companies sell their product in overseas markets at a much lower price than their actual cost of producing. What is that product called?

Correct Answer: B) Dumping.