This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 103 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 103 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. India is a member country of which of the following trading block? A) OPEC. B) EU. C) SAFTA. D) ASEAN. Show Answer Correct Answer: C) SAFTA. 2. What does the term 'balance of payments' mean in economics? A) An accounting statement that records all international transactions. B) An accounting statement that records domestic transactions. C) An accounting statement that records financial transactions. D) An accounting statement that records trade deficits and surpluses. Show Answer Correct Answer: A) An accounting statement that records all international transactions. 3. Different countries are differently gifted, with production of different commodities A) MONETARY UNITS OR CURRENCY. B) IMMOBILITY OF FACTORS OF PRODUCTION. C) AVAILABILITY OF NATURAL RESOURCES. D) None of above. Show Answer Correct Answer: C) AVAILABILITY OF NATURAL RESOURCES. 4. Which is NOT an example of a trade barrier? A) Tariff. B) NAFTA. C) Embargo. D) Quota. Show Answer Correct Answer: B) NAFTA. 5. ..... advocates that a country should focus and specialize in the production of goods that it can produce relatively at a lower cost than other countries. A) Theory of absolute advantage. B) Theory of comparative advantage. C) Hecksher Ohlin Theory. D) Theory of mercantilism. Show Answer Correct Answer: B) Theory of comparative advantage. 6. What do you understand by Exchange Rates A) Price of one currency expressed in terms of another. B) Price of currency which can increase and decrease. Show Answer Correct Answer: A) Price of one currency expressed in terms of another. 7. The U.S. can produce 1, 000 iPads or 20 cars. China can produce 1, 800 iPads or 10 cars. Who should produce what? A) U.S.-iPadChina-car. B) U.S.-carChina-iPad. C) Both should produce iPads. D) They should not specialize. Show Answer Correct Answer: B) U.S.-carChina-iPad. 8. ..... is the last step of the chain of business middlemen A) Retailer. B) Wholesaler. C) Agent. D) Customer. Show Answer Correct Answer: A) Retailer. 9. Advantage of international trade A) Economic and political dependence. B) Higher income and economic growth. C) Transportation cost. D) None of above. Show Answer Correct Answer: B) Higher income and economic growth. 10. A legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried A) Quota. B) Bill of lading. C) Certificate or origin. D) Tariff. Show Answer Correct Answer: B) Bill of lading. 11. What is an International Trade? A) Production of goods and services required resources. B) Exchange of capital, goods and services across international borders or territories. C) Countries sell their products to others also when the production of goods comes in surplus quantities. D) All commercial activities that take place to promote the transfer of goods. Show Answer Correct Answer: B) Exchange of capital, goods and services across international borders or territories. 12. Bill A) Trade. B) Commercial invoice. C) Delivery. D) Broker. Show Answer Correct Answer: B) Commercial invoice. 13. Zero-sum game is a 'win-lose' situation A) True. B) False. Show Answer Correct Answer: A) True. 14. Which of the following trade theories divides the nations of the world into three categories? A) National competitive advantage of industries. B) Strategic trade. C) Factor endowment. D) Product life cycle. Show Answer Correct Answer: D) Product life cycle. 15. How many members are there in WTO? A) 120. B) 139. C) 164. D) 174. Show Answer Correct Answer: C) 164. 16. Unrestricted free trade is beneficial, but because of diminishing returns, the gains may not be as great as the simple model would suggest. A) True. B) False. Show Answer Correct Answer: A) True. 17. How does a tariff differ from a quota? A A tariff is on exports, a quota is on imports. B A tariff is on the quantity of an import, a quota is on the price of an import. C A tariff raises government revenue, a quota raises no government revenue. D A tariff raises the price at which imports sell, a quota does not. A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 18. Interest can be obtained by family households because they do ..... A) Renting out the land owned by the company. B) Lend an amount of money or funds as the business capital of the company. C) Sacrifice his energy so he can work at the company. D) Provide energy and thoughts in managing the company. Show Answer Correct Answer: B) Lend an amount of money or funds as the business capital of the company. 19. What could be some negative side effects of international trade? A) Unsafe and unfair working conditions in factories abroad. B) Environmental degradation due to increased industrial activities. C) Both A and B. D) None of the above. Show Answer Correct Answer: C) Both A and B. 20. A policy in which a nation does not try to limit imports or exports by enacting tariffs (taxes on imports) or subsidies (money to assist an industry so prices can remain low). A) Free trade. B) Trade war. C) Trade empowerment zone. D) Trade alliance. Show Answer Correct Answer: A) Free trade. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books