This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 110 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 110 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Imagine that in France it takes 3 hours of labor to produce a loaf of bread and 9 hours to A) 2 loaves of bread. B) 3 loaves of bread. C) 12 loaves of bread. D) 27 loaves of bread. Show Answer Correct Answer: B) 3 loaves of bread. 2. Which action would be best for a country seeking a comparative advantage in global trade? A) Buy from countries that specialize in needed products. B) Develop new technologies to make production more efficient. C) Join economic unions with a single currency and reduced tariffs. D) Make products with the highest opportunity costs. Show Answer Correct Answer: B) Develop new technologies to make production more efficient. 3. Sanitary and Phytosanitary Measures are a form of non-tariff barriers in the form of: A) Policies to protect health. B) Technical regulations. C) Suitability assessment procedures. D) Applicable standards. Show Answer Correct Answer: A) Policies to protect health. 4. What was GATT converted to? A) ASYCUDA. B) International Chamber of Commerce. C) World Trade Organization. D) International Monetary Fund. Show Answer Correct Answer: C) World Trade Organization. 5. WTO would make it more effective at policing global trade rules than the GATT had been. A) True. B) False. Show Answer Correct Answer: A) True. 6. What percentage of the world's consumer goods are transported using stackable sea containers, worth trillions of dollars? A) 70%. B) 40%. C) 60%. D) 30%. Show Answer Correct Answer: C) 60%. 7. Which of the following is one of the conditions specified in eclectic theory for the occurrence of foreign direct investment? A) Non-ownership advantage. B) Location advantage. C) Home country advantage. D) Externalization advantage. Show Answer Correct Answer: B) Location advantage. 8. The limit on the quantity of a product that may be imported or exported. A) Embargo. B) Tariff. C) Standards. D) Quotas. Show Answer Correct Answer: D) Quotas. 9. A country has a deficit on its current account of its balance of payments. What could increase the size of its deficit? A increased exports of its services B increased international competitiveness of its goods C increased numbers of visitors from abroad D increased spending on its military bases abroad A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. 10. What is the acronym for VAT? A) Virtual At Teaching. B) Value Added Tax. C) Visual Administration Technology. D) Visual Aid Technology. Show Answer Correct Answer: B) Value Added Tax. 11. About ..... % of Pakistan's exports go to ten countries. A) 50. B) 55. C) 60. D) None of above. Show Answer Correct Answer: C) 60. 12. MNCs has the capacity to be able to produce larger quantities of outputs because they are able to reduce cost, ability to have experts and produce better quality of products. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 13. What is the impact of international trade on economic growth? A) International trade has a positive impact on economic growth. B) International trade has a negative impact on economic growth. C) International trade has no impact on economic growth. D) International trade has a mixed impact on economic growth. Show Answer Correct Answer: A) International trade has a positive impact on economic growth. 14. Agreement on Technical Barriers to Trade is contained in the annex (Annex)..... A) 1C. B) 2. C) 1A. D) 1B. Show Answer Correct Answer: C) 1A. 15. Which method of protection always reduces the supply of an imported good to zero? A) Embargo. B) Quota. C) Subsidy. D) Tariff. Show Answer Correct Answer: A) Embargo. 16. What are the key factors that attract businesses to participate in international trade events? A) Decreased market competition. B) Limited access to information and resources. C) Opportunities for networking, market expansion, and access to new technologies and trends. D) Higher taxes and tariffs. Show Answer Correct Answer: C) Opportunities for networking, market expansion, and access to new technologies and trends. 17. International trade can be detrimental to nations if it leads to:a) dependence on other countriesb) Growing gap between rich and poor countriesc) commercial linkages amongst countriesd) Rivalry and wars between countries A) All the statements are incorrect. B) All the statements are correct. C) Only a, b and c are correct. D) Only a, b and d are correct. Show Answer Correct Answer: D) Only a, b and d are correct. 18. All items in this range will be ..... from 27 April. A) Suitable. B) Portable. C) Available. D) Accessible. Show Answer Correct Answer: C) Available. 19. Observe Table 8.5. Which item has the largest share in total imports of India. A) Petroleum and Petroleum products. B) Chemical products. C) Edible oils. D) Iron and Steel. Show Answer Correct Answer: A) Petroleum and Petroleum products. 20. International trade arises due to similarities in..... A) Importance. B) SDA. C) Geographical location. D) Ideology. Show Answer Correct Answer: B) SDA. ← 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