International Trade and Globalisation — Practice Questions

Question 1

Goods that a country sells to other countries are:

Accepted Answer

exports — Goods sold abroad are exports.

Question 2

Goods that a country buys from other countries are:

Accepted Answer

imports — Goods bought from abroad are imports.

Question 3

The price of one currency in terms of another is the:

Accepted Answer

exchange rate — That is the exchange rate.

Question 4

The growing connection between the world's economies is called:

Accepted Answer

globalisation — That is globalisation.

Question 5

Countries trade because they can gain from:

Accepted Answer

specialising — Trade lets countries gain from specialising.

Question 6

If a country's exports earn more than it spends on imports, it has a trade:

Accepted Answer

surplus — Exports > imports gives a trade surplus.