Examkin

Question

Difficulty: EasyInternational Trade and Commercial Geography

Match each international trade term on the left with its corresponding definition or example on the right.

  • Visible TradeExport and import of physical tangible commodities such as crude oil and cocoa
  • Invisible TradeExchange of intangible services such as tourism, banking, and sea transport
  • Customs UnionA trade agreement removing internal tariffs and imposing a common external tariff
  • Trade EmbargoAn official government prohibition or restriction on trade with a specific country

Answer

Visible Trade matches physical commodity exports/imports; Invisible Trade matches international service exchanges; Customs Union matches member free trade with a shared external tariff; Trade Embargo matches an official trade ban.
Visible trade represents physical merchandise transactions. Invisible trade represents cross-border service payments. A customs union combines internal free trade with a common tariff on external goods. A trade embargo completely restricts trading activities with a specific nation.

Step-by-Step Solution

1
Distinguish between tangible goods and services in trade.
Visible trade deals with physical merchandise like cocoa and crude oil, while invisible trade deals with services like banking and tourism.
Physical items can be visually inspected at ports (visible), whereas services are non-physical (invisible).
2
Identify regional trade integration structures and commercial restrictions.
A customs union establishes internal free trade with a common external tariff, while an embargo bans trade entirely.
Economic groupings aim to facilitate regional commerce under agreed tariff structures, whereas embargoes act as severe trade sanctions.

Key Concept

Fundamental Concepts and Policy Instruments of International Trade
Rate this question

Topics

International Trade and Commercial Geography

More questions from this topic