True/False
Indicate whether the sentence or statement is true
or false.
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1.
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The United
States is so rich in resources, it doesn’t need to trade with other countries.
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2.
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Quotas and
tariffs are types of trade barriers.
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3.
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Imports are
goods and services that one country sells to another country.
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4.
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If no one
wants to buy products from a country, the value of its currency decreases.
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5.
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A country
can have an unfavorable balance of trade with one country and a favorable balance of trade with
another.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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6.
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When the
value of a country’s currency goes up compared to another country’s, it has
this. a. | unfavorable exchange
rate | c. | favorable exchange
rate | b. | balance of
trade | d. | embargo | | | | |
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7.
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Between 1980
and 2000, the United States ran up a trade deficit of about $330 billion because of
this. a. | unfair foreign trade
practices | c. | free
trade | b. | competition from other countries | d. | protectionism | | | | |
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8.
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Why would a
country choose to lower the value of its currency? a. | to import more
goods | c. | to compete
unfairly | b. | to balance trade | d. | to bring in more business | | | | |
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9.
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Which of the
following is not a type of trade barrier? a. | quota | c. | tariff | b. | embargo | d. | tourism | | | | |
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10.
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How can
countries sell what they produce best so they can buy the products they need from other
countries? a. | by
specializing | c. | by importing
more | b. | by using human
resources only | d. | by
diversifying | | | | |
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Completion
Complete each sentence or
statement.
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11.
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The price at
which one country can buy another country’s currency is called its
_________________________.
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12.
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The
difference between how much a country imports and how much it exports is called its
_________________________.
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13.
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When a
country imports more than it exports, it has a trade ____________________, which means it is in
debt.
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14.
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A
corporation that does business in many countries and has facilities in many countries is a(n)
_________________________.
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15.
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One
country’s exports are another country’s ____________________.
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16.
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By
____________________, countries can sell what they produce best to buy what they need from other
countries.
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17.
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To limit
competition from other countries, governments put up _________________________ to keep foreign
products out.
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18.
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To reduce
limits on trade, more countries are merging their economies with each other into one huge market by
forming _________________________.
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19.
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A limit
placed on the amount of a product that can be imported is called a(n)
____________________.
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Matching
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Match
each item with the correct statement. a. | imports | f. | foreign exchange market | b. | trade
disputes | g. | currency | c. | tariff | h. | free trade | d. | NAFTA | i. | protectionism | e. | exports | j. | embargo | | | | |
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20.
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pesos,
dollars, and yen
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21.
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banks where
different currencies are exchanged
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22.
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products the
United States sells to Mexico, Japan, and other countries
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23.
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products the
United States buys from Mexico or Japan
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24.
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conflict
over global competition
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25.
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practice of
putting limits on foreign trade to protect businesses at home
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26.
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tax placed
on imports to increase their price in the domestic market
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27.
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belief that
there should be no limits on trade
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28.
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when a
government stops imports or exports of a product
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29.
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trade
alliance between the United States, Canada, and Mexico
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