Assessment+&+Quiz


 * Assessment & Quiz **

1) People can trade for what they would like, without having to report to anyone else. What type of trade does this involve?


 * Answer: __Free Trade.__**

2) Taking advantage of underdeveloped countries by paying them less than deserved. This displays what type of trade?


 * Answer: __Free Trade.__**

3) For the previous question, give an example who this could feasibly effect.


 * Answer: __Farmers working crops long hours, but when it comes to trade they get none,etc.__**

4) Give an example of a restriction fair trade obtains.


 * Answer:** **__Tariffs, subsidies, and licensing.__**

5) State at least two negatives from outsourcing.


 * Answer: __American job loss/layoffs, decreased quality of customer service, hidden costs, loss of control, and unreliable vendors.__**

6) Government states you have to help the less developed countries so that they can enhance gender equity, ease poverty, improve working conditions, the environment, and distributive justice. What is this an example of?


 * Answer: __Fair Trade.__**

7) True or false? Improved living conditions and education is an effect of fair trade.


 * Answer: __True.__**

8) True or false? Fair trade prices set prices artificially low, without knowing what is going on in the market, like oversupply.


 * Answer: __False, fair trade prices are set artificially high.__**

9) Trading that does not take advantage of underdeveloped countries.


 * Answer: __Fair Trade.__**

10) True or false? Free traders think global prosperity is contingent upon everyone's needs including those less fortunate in undeveloped countries, while fair traders find it a potential harm.


 * Answer: __False, fair trade finds that global prosperity must be met by helping everyones needs, where as free trade finds it dangerous.__**