Module 3: International Agreements

Question 1

List International Trade Theories

Answer 1

Mercantilism

Absolute Advantage

Comparative Advantage

Factory Endowment

Country Similarity Theory

Global Strategic Rivalry Theory

Question 2

What is Specialization

Answer 2

One Country will use all the resources to produce one product and import the other product from another country

Question 3

List the type of Tariffs

Answer 3

Import Tariffs

Export Tariffs

Protective Tariffs

Revenue Tariffs

Specific Tariffs

Ad Valorem Tariffs

Compound Tariffs

Question 4

What is a Quota

Answer 4

Quotas are limitations on imported goods. They come in an absolute or tariff-rate variety and affect supply in the domestic economy. A quota can be a limit on the number of items that can be imported, or it can be a limit on the value of items that can be imported.
There are two main types of import quotas: the absolute quota and the tariff-rate quota