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Unit1
1.F International trade is only the exchange of goods between nations.
T Countries trade with each other partly because of cost advantages.
T Trade means countries can provide a wider variety of products for their consumers
T International trade can greatly expand the market, which enables the suppliers to take advantage of economies of scale.
5.T Exchange rate fluctuations may create many problems for international trade.Exchange rate fluctuations may create many problems for international trade
6. T Still in some cases, political reasons can outweigh economic considerations between countries.
7. T When we provide shipping insurance service for foreigners, it can be seen as an example of invisible trade.
8.F Trade surplus means that a country’s imports exceed its exports.
9. T Tariff and quotas are the examples of trade barriers.
10. T A duty levied on a specific shipment can be an import, a protective and a compound duty at the same time.
1. ___________ is the reason why international trade first began. a. Uneven distribution of resources c. Economic benefit b. Pattern of demand d. Comparative advantage
2. If one country concentrates on the production of the goods in which it has a comparative advantage, and produces more than it can use, then it will sell the left to other countries. This reason for international trade is called ___________. a. economies of scale c. specialization b. variety of style d. patterns of demand
3. The production cost will decrease if the goods are produced on a large scale. This is called ___________. a. economies of scale c. specialization b. variety of style d. patterns of demand
4. The followings are the special problems for international trade except for ___________. a. using foreign languages and foreign currency c. having risks b. under foreign laws, customs and regulations d. numerous cultural differences
5. ___________ refers to an exchange of services, labor or other non-physical goods between countries. a. Invisi
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