3 de agosto de 2022
Categoria: Sem categoria MCQ on Free Trade Agreement: Test Your Knowledge
Free trade agreements (FTA) are international agreements that eliminate or reduces barriers to trade and investment between countries. FTAs are becoming increasingly important in today’s globalized world, as they enable countries to expand their business opportunities and increase economic growth. In this article, we will test your knowledge on FTA with multiple-choice questions (MCQs).
1. What is a free trade agreement?
A. An agreement between two or more countries to eliminate import tariffs and other barriers to trade.
B. An agreement between two or more countries to increase import tariffs and other barriers to trade.
C. An agreement between two or more countries to ban all imports and exports.
D. An agreement between two or more countries to regulate imports and exports.
Answer: A
2. Which of the following is an example of a free trade agreement?
A. NAFTA (North American Free Trade Agreement)
B. WTO (World Trade Organization)
C. GATT (General Agreement on Tariffs and Trade)
D. OPEC (Organization of the Petroleum Exporting Countries)
Answer: A
3. What is the purpose of a free trade agreement?
A. To increase trade and investment between countries.
B. To reduce competition between countries.
C. To regulate trade and investment between countries.
D. To protect domestic industries from foreign competition.
Answer: A
4. Which of the following is a benefit of a free trade agreement?
A. Increased competition
B. Lower prices for consumers
C. Increased foreign investment
D. All of the above
Answer: D
5. Which of the following is a potential downside of a free trade agreement?
A. Job loss in domestic industries
B. Increase in the trade deficit
C. Reduced government revenue
D. All of the above
Answer: D
6. How can a country benefit from a free trade agreement?
A. By increasing exports
B. By reducing imports
C. By attracting foreign investment
D. All of the above
Answer: D
7. Which country has the most free trade agreements?
A. USA
B. China
C. Singapore
D. Japan
Answer: C
8. Which of the following is true about free trade agreements?
A. They are only beneficial for developed countries.
B. They are only beneficial for developing countries.
C. They are beneficial for both developed and developing countries.
D. They are not beneficial for any country.
Answer: C
Overall, free trade agreements have become an important aspect of international trade and investment. It is crucial for individuals to understand the fundamentals of FTAs in order to make informed decisions and policy-making. We hope this MCQ has tested your knowledge on the topic of free trade agreements.