Global Exchange Challenge Test your knowledge on international trade with these 12 questions covering various aspects of trade agreements, tariffs, and export/import principles. ghostman published on September 28 Stacked 1/12 What does NAFTA stand for? North Atlantic Free Trade Agreement North American Free Trade Agreement National Association of Foreign Trade Agreement North African Free Trade Association 2/12 What is the main purpose of the World Trade Organization (WTO)? To promote free trade and regulate international commerce To protect domestic industries from foreign competition To increase tariffs on imported goods To reduce exports to other countries 3/12 What is a tariff? A tax paid by consumers on domestic goods A fee charged by airlines on international flights A tax on imported goods to restrict trade A subsidy given to foreign companies 4/12 Which country is the world's largest exporter of goods? Germany China United States Japan 5/12 What is a trade deficit? When a country exports more than it imports When a country imports more than it exports When a country has a surplus of trade agreements When a country imposes high tariffs on imports 6/12 Which of the following is an example of a trade barrier? Free trade agreement Import quota Trade agreement Export subsidy 7/12 What is the purpose of an export subsidy? To encourage domestic companies to sell goods abroad To restrict the export of certain goods To increase import tariffs on foreign goods To provide financial aid to importers 8/12 Which international organization provides financial assistance to developing countries for trade-related projects? World Health Organization (WHO) International Monetary Fund (IMF) World Bank European Union (EU) 9/12 What does FOB stand for in international trade? Free On Board Foreign Owned Business Freight On Board Forward Operating Base 10/12 Which trade theory suggests that countries should specialize in producing goods where they have a comparative advantage? Mercantilism Comparative Advantage Protectionism Absolute Advantage 11/12 What is an embargo in international trade? An agreement between two countries to facilitate trade A tax imposed on imports from specific countries A ban on trade with another country A form of export promotion 12/12 Which of the following is a regional trade agreement? Most Favored Nation (MFN) treatment Bilateral trade agreement European Union (EU) General Agreement on Tariffs and Trade (GATT)