Lesson 4.1.5
4.1.5 Trading blocs Quiz: Pearson Edexcel Business, Unit 4
20 questions
In partnership with Revision Ninja
Lesson 4.1.5, Trading blocs: 20 multiple choice questions for the Pearson Edexcel Business (9BS0), Unit 4: Global business, written with Revision Ninja.
Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.
The 20 questions
-
What key feature distinguishes a customs union from a free trade area?
- Free labour mobility
- Common external tariff
- Floating exchange rate
- A single currency
-
How many freedoms form the core foundation of the European Union single market?
- Five
- Four
- Two
- Three
-
In which geographical region is the ASEAN trading bloc located?
- Western Europe
- North Africa
- South-East Asia
- South America
-
Which three countries originally established the North American Free Trade Agreement?
- Canada, Mexico, Brazil
- USA, UK, Canada
- USA, Canada, Mexico
- USA, Mexico, Cuba
-
What key commercial benefit do firms gain when their country joins a trading bloc?
- Lower corporation tax
- Free government subsidies
- Eliminated exchange rates
- Tariff-free trade
-
What term describes high-cost domestic production being replaced by cheaper imports from a trading bloc member?
- Trade deficit
- Trade diversion
- Trade creation
- Protectionism
-
Which change directly increases trade costs for a firm exporting outside a trading bloc?
- Free trade agreements
- Import tariffs
- Trade creation
- Exchange rate parity
-
What is the uniform tax applied to goods entering a customs union from non-member nations?
- Bilateral trade agreement
- Preferential import quota
- Common external tariff
- Domestic trade subsidy
-
A good priced at 250 faces a 12% tariff when imported from outside a bloc. What is the cost including the tariff?
- 250
- 280
- 262
- 30
-
What is a major domestic pressure created when a country joins a single market?
- Increased rival competition
- Reduced market size
- Higher export tariffs
- Guaranteed market share
-
What term describes trade shifting from an efficient non-member to a less efficient member state?
- Trade protection
- Trade deficit
- Trade creation
- Trade diversion
-
ASEAN is a regional trading bloc located in which global region?
- North America
- South-East Asia
- South America
- Western Europe
-
Trade creation within a trading bloc causes trade to move from high-cost domestic producers to:
- Expensive non-member exporters
- Cheaper member producers
- Domestic state monopolies
- Subsidised foreign competitors
-
What is the main advantage for a business selling products under harmonised single market standards?
- Variable local regulations
- Higher export tariffs
- Lower compliance costs
- Quota restrictions
-
Trade with bloc members rises from 60 million to 90 million. What is the percentage increase?
- 60%
- 150%
- 50%
- 30%
-
Which policy feature distinguishes a customs union from a free trade area?
- Single shared currency
- Free labour movement
- Zero internal tariffs
- Common external tariff
-
What main financial risk is eliminated for firms trading within a single currency zone?
- Domestic inflation risk
- Exchange rate uncertainty
- Import tariff risk
- Credit default risk
-
Trading blocs such as NAFTA and ASEAN are forms of what economic process?
- Regional economic integration
- Domestic market nationalisation
- Financial market deregulation
- Global trade protectionism
-
Why does joining a free trade area increase competitive pressure on domestic firms?
- Imposition of quotas
- Removal of tariffs
- Higher transport costs
- Increased export subsidies
-
Which factor is a major drawback for inefficient domestic firms when entering a trading bloc?
- Expanded target market
- Increased foreign competition
- Lower input costs
- Common external tariffs
Related quizzes
- Growing economies Quiz · 4.1.1 · 20 questions
- International trade and business growth Quiz · 4.1.2 · 20 questions
- Factors contributing to globalisation Quiz · 4.1.3 · 20 questions
- Protectionism Quiz · 4.1.4 · 20 questions
- Push and pull factors for trade Quiz · 4.2.1 · 20 questions
- Assessing a country as a market Quiz · 4.2.2 · 20 questions
- Assessing a country as a production location Quiz · 4.2.3 · 20 questions
- Global mergers and joint ventures Quiz · 4.2.4 · 20 questions
- Exchange rates and global competitiveness Quiz · 4.2.5 · 20 questions
- Mass and niche markets, and dynamic markets Quiz · 1.1.1a · 20 questions