The World Trade Organization (WTO) aims to facilitate trade by reducing ___ and other barriers.

Tariffs

True or False: The General Agreement for Tariffs and Trade (GATT) was established in 1995.

False. GATT was established in 1948 and transformed into the WTO in 1995.

Fill in the blank: The balance of trade is calculated by taking the difference between a country's ___ and ___.

Exports; imports

What is the primary function of the WTO regarding international trade disputes?

To provide a forum for member nations to negotiate trade agreements and settle disputes.

Fill in the blank: The act of opening up economies by removing trade barriers is known as ___ or trade liberalization.

Free trade

True or False: Bilateral trade is conducted between three or more countries.

False. Bilateral trade is conducted between two countries.

What are the two major types of international trade?

Bilateral trade and multilateral trade.

Fill in the blank: The principle that states trade can be mutually beneficial due to differences in resource availability is known as ___ advantage.

Comparative

What is the significance of the Most Favored Nation (MFN) principle in international trade?

It promotes uniform trading rules and prevents discrimination among member countries.

Fill in the blank: Ports that handle bulk cargo like grain and oil are classified as ___ ports.

Industrial

True or False: The volume of trade refers to the total value of goods and services traded in a given period.

True

What role do regional trade blocs play in international trade?

They facilitate trade among geographically proximate countries and reduce trade barriers.

Fill in the blank: The type of trade that occurs among many nations simultaneously is known as ___ trade.

Multilateral

What was a major consequence of the slave trade in the context of international trade?

It became a lucrative business, resulting in significant human suffering and ethical concerns.

Fill in the blank: Dumping is the practice of selling a commodity in two or more countries at a price that differs for reasons not related to ___.

Costs

What is the main concern associated with trade liberalization?

It can lead to increased competition and may harm domestic producers due to dumped goods.

True or False: The WTO is responsible for setting all national trade policies.

False. The WTO facilitates trade rules but does not set national policies.

What are the four major factors that influence international trade?

Differences in national resources, population aspects, stages of economic development, and extent of foreign investment.

Fill in the blank: The headquarters of the World Trade Organization is located in ___, Switzerland.

Geneva