This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Irrevocable L/Cs ..... A) Can only be cancelled or amended by the importer. B) Cannot be cancelled or amended without the permission of the exporter. C) Are guarantees to importers to support domestic economies. D) None of above. Show Answer Correct Answer: B) Cannot be cancelled or amended without the permission of the exporter. 2. Australia needs trade with China more than China needs trade with Australia A) True. B) False. Show Answer Correct Answer: A) True. 3. What are trade blocks designed to do? A) Encourage trade between countries within the trading block. B) Impose tariffs on goods and services. C) Limit international trade. D) Promote isolationism in international business. Show Answer Correct Answer: A) Encourage trade between countries within the trading block. 4. Is the market value of all finished goods and services produced within a country in a year. Can be calculated using production, expeditures or incomes. A) GDP nominal. B) Real GDP. C) GDP per capita. D) None of above. Show Answer Correct Answer: A) GDP nominal. 5. Inflation can BEST be described as: A) Fluctuations in the general price level. B) A general and sustained rise in the level of prices. C) A fall in the level of prices of goods and services. D) Changes in the level of prices of goods and services. Show Answer Correct Answer: B) A general and sustained rise in the level of prices. 6. Specialization is a method of production whereby an entity focuses on the production? A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. What is the daily dollar amount traded on all stock exchange markets? A) 1.2 trillion USD. B) 6.6 billion USD. C) 1.2 billion USD. D) 6.6 trillion USD. Show Answer Correct Answer: D) 6.6 trillion USD. 8. The Law of Comparative Advantage states A) That some countries are more efficient in the production of all goods. B) That one country is more efficient in the production of all goods. C) That Centrally Planned Economies are better at producing the goods they use and so do not import. D) A country should specialise in the production of those goods at which it is relatively more efficient. Show Answer Correct Answer: D) A country should specialise in the production of those goods at which it is relatively more efficient. 9. It is the program you have the possibility to use when an imported good is broken but you still have the warranty from the supplier abroad: A) Draw back. B) Altex. C) Temporary import. D) Maquila. Show Answer Correct Answer: A) Draw back. 10. What is the aim of protectionism? A) To cushion domestic business and industries from overseas competition. B) To soften domestic firms and market from foreign investment and to prevent results of interplay of the free market power. C) A and B. D) To increase the market demand. Show Answer Correct Answer: C) A and B. 11. When a country imports more than they export, it creates a- A) Trade surplus. B) The trade fails. Show Answer Correct Answer: B) The trade fails. 12. Which unit does a physical inspection on the products? A) Inspectorate Unit. B) Licensing Unit. Show Answer Correct Answer: A) Inspectorate Unit. 13. Commodities that are expensive and gives sense of entitlement and prestige in society. A) Necessities. B) Comforts. C) Luxuries. D) None of above. Show Answer Correct Answer: C) Luxuries. 14. What factors can affect the balance of trade? A) Population size, cultural differences, transportation costs. B) Weather conditions, consumer preferences, technological advancements. C) Currency stability, political stability, labor costs. D) Exchange rates, tariffs and trade barriers, economic growth, inflation, government policies, and global demand for goods and services. Show Answer Correct Answer: D) Exchange rates, tariffs and trade barriers, economic growth, inflation, government policies, and global demand for goods and services. 15. Argentina increased taxes to 9% on the import of milk powder after record levels of imports and fears Argentina farmers would suffer falling incomes. This is an example of which trade barrier? A) Tariff. B) Embargo. C) Quota. D) None of above. Show Answer Correct Answer: A) Tariff. 16. Goods sent to other countries A) Imports. B) Exports. C) Absolute advantage. D) Comparative advantage. Show Answer Correct Answer: B) Exports. 17. Which of the following trade barriers would NOT be effective if a leader only wants to limit trade? A) Tariff. B) Embargo. C) Quota. D) None of above. Show Answer Correct Answer: B) Embargo. 18. Protectionist measures by Home increase the national welfare A) True. B) False. C) True if terms of trade gains outweigh the efficiency losses. D) True if terms of trade gains equal the efficiency losses. Show Answer Correct Answer: C) True if terms of trade gains outweigh the efficiency losses. 19. Following the crash in stock market, the US government limited the number of imported agricultural products. What type of trade barrier is it? A) Tariff. B) Standard. C) Subsidy. D) Quota. Show Answer Correct Answer: D) Quota. 20. According to the Buy America Act, if a company wishes to win acontract from a U.S. government agency to provide some equipment, it must ensure that at least 51 percent of the product by value ismanufactured in the United States. This is an example of: A) Anti dumping duties. B) Import quotas. C) Voluntary export restraint. D) Local content requirements. Show Answer Correct Answer: D) Local content requirements. ← 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