Name________________________________
Date__________________________
International Trade Policies & the Economy Quiz
1. _____Prior to World War II, most countries in the world practiced which of the
following trade policies?
A. Protectionism
B. Isolationism
C. Globalization
D. Free Trade Policy
2. _____Which of the following countries is the largest trading partner with the US?
A. Mexico
B. China
C. Canada
D. Japan
3. _____Which of the following is not a part of constructing international trade policy?
A. Isolationism
B. Protectionism
C. Strategic Trade Policy
D. Free Trade Policy
4. _____ Which of the following is a special tax on imported goods?
A. Tariff
B. Subsidies
C. Trade Agreement
D. Deficit
5. _____Protectionism trade policy was a significant factor in which of the following
US historical events?
A. The American Revolution
B. The Civil War
C. The Great Depression
D. The 2008 government “Bailout”
6. _____Which of the following countries has the most regulated international trade
policy?
A. China
B. Venezuela
C. Cuba
D. North Korea
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7. _____Which of the following is NOT a benefit of free international trade?
A. Benefits local farmers and small businesses
B. Opens up markets to a greater diversity of products
C. Creates more competition for businesses
D. Decreases labor costs for big business
8. _____GATT was a trade agreement that preceded which international trade agreement?
A. The European Union
B. World Trade Organization
C. North American Free Trade Agreement
D. The United Nations
9. _____Which of the following was not considered a basic objective of the GATT?
A. Countries could not discriminate against one another in trade matters
B. Countries would work to eliminate all tariffs and regulatory barriers
C. Countries would work together to resolve trade conflicts
D. Countries could impose trade sanctions for political violations
10. _____NAFTA was established under which US President?
A. George H. W. Bush
B. Bill Clinton
C. George W. Bush
D. Barack Obama
11. _____The International Labor Organization is a part of which international organization?
A. The European Union
B. The World Trade Organization
C. The United Nations
D. North American Free Trade Agreement
12. _____Which of the following best defines the term globalization?
A. Technological advances that have easily connected countries around the world
B. A worldwide economy created by the integration and interdependence of
national economies
C. A mutual reliance in which actions in nations reverberate and affect the economic
well-being of people in other nations
D. An economic policy which shields an economy from imports
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13. _____Why do businesses in the US outsource the production of goods to foreign
countries?
A. Businesses receive tax breaks from the federal government
B. Labor is cheaper in some countries
C. Production quality is better in some countries
D. It is a requirement for members of the World Trade Organization
14. _____Which act was created by the US Congress to impose tariffs on Communist
countries?
A. The Trade Act of 1974
B. The Smoot-Hawley Tariff Act
C. The Revenue Act of 1964
D. Permanent Normal Trade Relations Act
15. _____Which of the following is not considered a key industry of trade for the US?
A. Aerospace
B. Computers
C. Healthcare
D. Biotechnology
16. _____Which of the following best describes the term balance of trade?
A. A trade agreement between two countries
B. Trade among countries is equally beneficial for all of the countries involved
C. Countries are only allowed to import the same value of goods that they export
D. The value of a country’s exports equals the country’s imports
17. _____Which of the following is best defined as the policy that decreases the costs of
bringing products to markets throughout the world by lowering or eliminating tariffs
and deregulating?
A. Free trade policy
B. Monetary Policy
C. Protectionist trade policy
D. Regulatory policy
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18. _____Which of the following best defines fiscal policy?
A. Tax breaks or any kind of financial support that encourages behaviors the government
deems beneficial to the public good
B. A worldwide economy created by the integration and interdependence of
national economies
C. The deliberate use of the national government’s taxing and spending policies
to maintain economic stability
D. An economic policy which shields an economy from imports
19. _____Which of the following is best defined as the dollar value of all final goods and
services produced in a one-year period?
A. Gross public debt
B. Consumer price index
C. Balance of trade
D. Gross domestic product
20. _____Which of the following government institutions has the greatest impact of the
economy?
A. Council of Economic Advisors
B. Federal Reserve Board
C. Senate Economic Committee
D. Office of Management and Budget
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