This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 111 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 111 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which theory explains how the MNE chooses to acquire and retain one or more value-chain activities inside itself? A) Nationalization Theory. B) Internalization Theory. C) Free Trade Theory. D) Monopolistic Advantage Theory. Show Answer Correct Answer: B) Internalization Theory. 2. Protectionists argue that trade barriers keep a nation from becoming too dependent on other countries. A) True. B) False. Show Answer Correct Answer: A) True. 3. It is mainly used when it comes to long intercontinental crossing A) Maritime transport. B) Land transportation. C) Multimodal transport. D) Air freight transport. Show Answer Correct Answer: D) Air freight transport. 4. Incoterms are used in International Trade to help buyer and seller understand the terms and conditions in a sales contract. One of the following is NOT defined by Incoterms: A) Obligations. B) Sales. C) Costs. D) Risks. Show Answer Correct Answer: B) Sales. 5. From an economic perspective, returns on foreign investment are included in the overall measure of trade because financial investments: A) Are a form of trade that takes place in the financial capital market. B) Can also be thought of as payments made by the government. C) Are made by parties in the U.S. economy and foreign investors. D) Have expanded substantially in the U.S. over the last few decades. Show Answer Correct Answer: A) Are a form of trade that takes place in the financial capital market. 6. It is the difference between a country's exports and imports. A positive trade balance (surplus) occurs when exports exceed imports, while a negative trade balance (deficit) occurs when imports exceed exports. A) Export. B) Trade balance. Show Answer Correct Answer: B) Trade balance. 7. How many parties are involved in the convention? A) 56. B) 108. C) 183. D) 20. Show Answer Correct Answer: C) 183. 8. The fundamental principle of non-discrimination in the WTO is known as A) MFN and NT. B) TRN & NT. C) MFN & TRN. D) TRN & SCM. Show Answer Correct Answer: A) MFN and NT. 9. Some kinds of product can be found on the international market are ..... A) Tourism, banking, consulting. B) Banking, consulting and transportation. C) Clothes, spare parts, oil,. D) Clothes, tourism, oil,. Show Answer Correct Answer: C) Clothes, spare parts, oil,. 10. Which of the following is the biggest importer in the world? A) EU. B) USA. C) Middle East. D) China. E) Japan. Show Answer Correct Answer: B) USA. 11. How do tariffs affect domestic consumers over time? A) The consumers pay lower prices for both foreign and domestic goods. B) Domestic goods are more expensive, but foreign goods are cheaper. C) There is a wider variety of goods available. D) Foreign goods become more expensive in comparison to domestic goods. Show Answer Correct Answer: D) Foreign goods become more expensive in comparison to domestic goods. 12. A tariff whose purpose is to increase the cost of imported goods so that similar domestic goods can compete with the imports is called a(n) ..... tariff. A) Protective. B) Security. C) Helpful. D) Price. Show Answer Correct Answer: A) Protective. 13. Shrimp caught off the coast of Maine are flown to Asia. A) Import. B) Export. Show Answer Correct Answer: B) Export. 14. In 2010, China placed a tax on imported American poultry of up to 105.4%. This is an example of which trade barrier? A) Tariff. B) Market. C) Embargo. D) Quota. Show Answer Correct Answer: A) Tariff. 15. A large country experiencing import-biased economic growth will tend to experience ..... A) Unchanged terms of trade. B) Deteriorating terms of trade. C) Improving terms of trade. D) Immiserizing terms of trade. Show Answer Correct Answer: C) Improving terms of trade. 16. It refers to the ability to produce goods and services at a lower opportunity cost. A) Mercantilism. B) Absolute Advantage. C) Comparative Advantage. D) None of above. Show Answer Correct Answer: C) Comparative Advantage. 17. Which of the following is NOT an example of a government agency responsible for regulating competition in the United States economy? A) Federal Communications Commission. B) Securities and Exchange Commission. C) Federal Anti-Trust Commission. D) Federal Trade Commission. Show Answer Correct Answer: C) Federal Anti-Trust Commission. 18. Actual amount of goods and services that can be bought with a unit of currency A) Purchasing Power. B) Exchange Rate. C) Standard of Living. D) Standards. Show Answer Correct Answer: A) Purchasing Power. 19. Over 80% of the clothes that Americans buy have been manufactured in other countries. Why do American firms sell clothes made in other countries? A) Foreign-made clothes are of higher quality then American-made clothes. B) Foreign-made clothes are more stylish then American-made clothes. C) Foreign-made clothes cost less than similar American-made clothes. D) Our government subsidizes imported clothing. Show Answer Correct Answer: A) Foreign-made clothes are of higher quality then American-made clothes. 20. What does the financial account of the balance of payments record? A) The sale and purchase of goods and services. B) Investment income earned abroad. C) Other transfers like donations and foreign aid. D) All of the above. Show Answer Correct Answer: B) Investment income earned abroad. ← 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