Test on Introduction to International Trade

Question 1: Global demand for goods experienced a significant surge in 2023, mitigating potential negative impacts on trade.

A. Ano

B. Ne

Explanation: The study materials list "Lower global demand for goods" as a negative factor affecting global trade in 2023, indicating a decrease rather than a surge.

Question 2: According to the study materials, which of the following are considered structural forces driving international trade?

A. Technology, including transport, communication, production, and digitalization

B. Institutions, such as rules, agreements, WTO, and regional blocs

C. Geography, encompassing location and distance

D. Short-term demand in individual countries

Explanation: The study materials explicitly list Structural forces as: Economics-efficiency, Institutions, Geography, Technology, Geopolitics-power, and Firms. Short-term demand in individual countries is listed under short-term determinants, not structural forces.

Question 3: Servification of production is exclusively characterized by the provision of standalone intangible services, separate from the manufacturing and agricultural sectors.

A. Ano

B. Ne

Explanation: The study materials define servification as a trend where economies and industries increasingly shift from producing tangible goods to providing services, emphasizing service-oriented activities. However, it also explicitly states that servification applies to "manufacturing, agriculture" and involves "digital processes increasingly integrated into MANUFACTURING." Furthermore, it notes the "incorporation of services into final product," such as "Software – part of many goods (e.g. automative industry)," indicating that servification is not exclusively separate from these sectors but rather deeply integrated within them.

Question 4: Which statement best describes the impact of "Carbon border adjustment" on international trade, as indicated in the study materials?

A. It primarily aims to eliminate forced labor in developing countries.

B. It leads to tighter regulations concerning the carbon content of imported goods and services.

C. It primarily involves investment screening in the technology sector.

D. It directly causes a rise in prices of wheat due to supply shocks.

Explanation: The study materials state that "Carbon border adjustment" is a mechanism that affects trade by applying "tighter regulations of the carbon content of imported goods and services." The other options relate to different topics mentioned in the study materials, such as labor standards, investment screening, or supply shocks from the war in Ukraine, not directly to carbon border adjustment.

Question 5: Exports of agricultural products experienced the highest percentage growth among major categories of goods in 2021.

A. Ano

B. Ne

Explanation: The study materials indicate that exports of fuels and mining rose by 57% in 2021, manufactured goods by 22%, and agricultural products by 19%. This shows that agricultural products had the least growth, not the highest.