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Meaning of International Trade - SS3 Economics Past Questions and Answers - page 1

1

What is international trade?

A

Exchange of goods and services between countries

B

Exchange of goods and services within a country

C

Exchange of money between countries

 

D

Exchange of cultures between countries

correct option: a
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2

What is the purpose of international trade?

A

 To decrease economic activity

B

To decrease living standards

 

C

To increase economic activity

D

To increase political tensions

correct option: c
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3

What is the benefit of international trade?

A

 Access to products that a country cannot produce itself

B

Decrease in competition

 

C

Decrease in markets

D

Decrease in economies of scale

correct option: a
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4

Which international organization helps to govern international trade?

A

World Health Organization

B

World Bank

 

C

World Trade Organization

D

United Nations

correct option: c
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5

Define international trade in your own words.

 

International trade refers to the exchange of goods and services between countries, with the aim of increasing economic activity and improving living standards.

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6

How does international trade benefits countries?

 

International trade allows countries to specialize in producing goods and services that they can produce more efficiently and cost-effectively, and to access products that they cannot produce themselves. Through international trade, countries can expand their markets, increase competition, and take advantage of economies of scale.

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