This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 116 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 116 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One of NT's goals is to: A) Securing local products. B) Directing public opinion to buy imported products. C) Avoid protectionist measures. D) Dominate the market in a country. Show Answer Correct Answer: C) Avoid protectionist measures. 2. Which of the following is a form of foreign direct investment? A) Foreign stock ownership. B) Bitcoin ownership. C) Participation in a joint venture. D) Mutual fund ownership. Show Answer Correct Answer: C) Participation in a joint venture. 3. Which term refers to a tax levied on imported goods to protect domestic industries? A) Quota. B) Subsidy. C) Embargo. D) Tariff. Show Answer Correct Answer: D) Tariff. 4. Explanation why it is beneficial for a country to engage in what A) Mercantilism. B) Absolute Advantage. C) International trade theory. D) Comparative Advantage. Show Answer Correct Answer: C) International trade theory. 5. The price quoted to the buyer, including cost, insurance, and freight A) CIF. B) C&H. C) FOB. D) Bill of lading. Show Answer Correct Answer: A) CIF. 6. Choose the best answer about the relation between inflation rate and exchange rate A) A country with a consistently lower inflation rate exhibits a depreciating currency value. B) Lower inflation rate contribute to lower purchasing power. C) Countries experiencing high inflation tend to also see their currencies weaken relative to other currencies. D) An appreciation in the exchange rate will tend to increase inflation. Show Answer Correct Answer: C) Countries experiencing high inflation tend to also see their currencies weaken relative to other currencies. 7. Which unions help trade among a centralized continent? A) EU and NAFTA. B) NATO and UN. C) WTO & UN. D) OPEC & NATO. Show Answer Correct Answer: A) EU and NAFTA. 8. The development of skills in a specific kind of work; division of labor A) Absolute Advantage. B) Comparative Advantage. C) Opportunity Cost. D) Specialization. Show Answer Correct Answer: D) Specialization. 9. The exchange of goods and services are known as A) International Trade. B) Domestic Trade. C) Trade. D) None of these. Show Answer Correct Answer: C) Trade. 10. What is worth more? A) U.S. Dollar. B) Colombian Peso. Show Answer Correct Answer: A) U.S. Dollar. 11. Country X achieved a surplus in its Balance of Payments due to its earnings from invisible trade. Which item would have featured in this trade? A) Chemicals. B) Insurance services. C) Medical equipment. D) Tablet computers. Show Answer Correct Answer: B) Insurance services. 12. Person or business that provides parts or services to another company; also called vendor A) Importer. B) Provider or supplier. C) Provide or supply. D) Distributor. Show Answer Correct Answer: B) Provider or supplier. 13. The exchange of goods and services among nations. A) International trade. B) Imports. C) Exports. D) None of above. Show Answer Correct Answer: A) International trade. 14. If I am better at all types of production or I can simply produce more than you, I have the ..... in all forms of production. A) Comparative advantage. B) Specialization. C) Absolute advantage. D) Developed nation. Show Answer Correct Answer: C) Absolute advantage. 15. When the exchange rate rises what happens to the value of the currency against other currencies? A) It stays the same. B) It goes up. C) It goes down. D) None of above. Show Answer Correct Answer: B) It goes up. 16. International trade is part of ..... A) Export. B) Import. C) International Business. D) None of the above. Show Answer Correct Answer: C) International Business. 17. Which country is the largest EXPORTER? A) Canada. B) China. C) Germany. D) United States. Show Answer Correct Answer: B) China. 18. When a country sends its goods or services AWAY to other countries A) Unlimited trade. B) Import. C) Export. D) Limited trade. Show Answer Correct Answer: C) Export. 19. The product life-cycle theory, proposed by Bertil Ohlin, suggested that as products mature both the location of sales and the optimal production location will change affecting the flow and direction of trade. A) True. B) False. Show Answer Correct Answer: B) False. 20. Regulations limiting the amount of imports being sold in a certain country A) Quotas. B) Embargoes. C) Specific Tariff. D) To value. Show Answer Correct Answer: A) Quotas. ← 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