Global Exchange Challenge

Global Exchange Challenge

Test your knowledge on international trade with these 12 questions covering various aspects of trade agreements, tariffs, and export/import principles.

published on September 28
1/12

What does NAFTA stand for?

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)?

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?

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?

Which country is the world's largest exporter of goods?
Germany
China
United States
Japan
5/12

What is a trade deficit?

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?

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?

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?

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?

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?

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?

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?

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)