1. Directions

You will read passages on the topic and then answer questions about them. You may find vocabulary at the end of the test. Read the questions carefully before choosing the correct answers.

2. Questions of the test

Question 1. What is the main benefit of trade agreements?
A) They can increase trade between countries by reducing barriers to trade
B) They can create a level playing field for businesses
C) They can foster cooperation and strengthen relationships between nations
D) All of the above

Question 2. Which of the following is NOT a type of trade agreement?
A) Bilateral agreements between two countries
B) Regional agreements between a group of countries in a specific geographic area
C) Multilateral agreements between multiple countries
D) National agreements within a single country

Question 3. Which of the following organizations is responsible for setting rules for international trade and resolving disputes between countries?
A) World Trade Organization (WTO)
B) International Monetary Fund (IMF)
C) World Bank
D) United Nations (UN)

Question 4. Which of the following is NOT a potential criticism of trade agreements?
A) They can lead to the outsourcing of jobs to countries with lower labor standards
B) They can undermine domestic industries by exposing them to competition from foreign companies
C) They can help to promote economic development and reduce poverty in developing countries
D) They can create closer economic ties between countries

Question 5. Which of the following statements about trade agreements is NOT true?
A) They can cover a wide range of topics, including tariffs, quotas, and other trade barriers
B) They can be bilateral, regional, or multilateral
C) They can only be implemented in developed countries
D) They can have significant economic, political, and diplomatic implications