Exercises

I.Short Answer Questions.

1）What are the reasons for international trade?

2）What is trade protectionism? Can you list some of them?

3）How many types of international trade do you know from Chapter 1, and what are they?

II.True or False Statements.

1）International trade refers to the exchange of goods between nations only.

2）Exchange rate fluctuations are not likely to create many problems in international trade transactions.

3）It becomes difficult for an exporter to verify the creditworthiness and reputation of an importer or a buyer because of the long distance.

4）Government subsidies mainly mean indirect subsidies which come in the form of special savings such as interest-free loans and tax breaks.

5）Middlemen have become almost a necessity in international trade because of their complexity.

III.Term Translation.

1）economy of scale

2）innovation

3）credit risk

4）unforeseen risk

5）import quota

6）tariff

7）government subsidy

8）currency manipulation

9）entrepot trade

10）scientific tariff

11）peril point import tariff

12）retaliatory tariff

13）dumping

14）embargo

15）direct subsidy

16）indirect subsidy

17）consignment business

18）indent firm

19）merchant shipper

20）forwarding agent QhcEOrxW+JQWKmS4ZCvR7xkpDbwbrcibIe+sDrvhhgpdVFiFi8+AQca6gUCe17OR