International Affairs: Checkpoint 1

Covers trade and globalization, exchange rates, and tariffs and trade wars.

Five questions on how trade, currencies and tariffs connect the global economy.

Question 1 of 5 Globalization's economic gains and costs have generally been:

Distributed evenly across every industry and worker Unevenly distributed, with costs concentrated in specific industries Entirely negative for every country involved Impossible to measure

Question 2 of 5 A 'floating currency' gets its value from:

A fixed peg set permanently by the government Supply and demand in currency markets The price of gold An international treaty

Question 3 of 5 If a country's currency appreciates, its exports generally become:

Cheaper for foreign buyers More expensive for foreign buyers Illegal to sell abroad Unaffected in price

Question 4 of 5 A 'retaliatory tariff' is best described as:

A tariff a country imposes on itself A tariff imposed in response to another country's tariff A tax refund for exporters A tariff that only applies to services

Question 5 of 5 A trade deficit means a country:

Is definitely losing economically Imports more from a partner than it exports to them Has broken international law Has no exports at all

A trade deficit isn't automatically a sign of an unfair relationship - it can simply reflect different consumption levels between the two countries.

← Back to Tariffs and Trade Wars Next lesson → The IMF and the World Bank

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