This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 117 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 117 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Tariff definition: A) Taxes are often used to restrict imported products. B) Taxes on goods that the State wants to limit exports. C) Tax on domestically produced products. D) Taxes that the state likes to collect. Show Answer Correct Answer: A) Taxes are often used to restrict imported products. 2. Advanced payment is seldom used as a means of securing payment. Name TWO (2) disadvantages of advanced payment to an importer. A) The importer may not receive the goods he has ordered or to his specifications or on time. B) There is a negative impact on his cash flow. C) Importer receive the goods before payment is made. D) 1, 2, 3. E) 1&2 only. Show Answer Correct Answer: E) 1&2 only. 3. Based on the following information, please list the transaction procedures of international trade:1. importer applies a letter of credit 2. exporter requests a negotiation from bank 3. importer and exporter sign a sale contract 4. importer entrusts a forwarding and clearing agent for delivery A) A 1, 3, 2, 4. B) B 2, 4, 1, 3. C) C 3, 1, 2, 4. D) D 3, 2, 1, 4. Show Answer Correct Answer: C) C 3, 1, 2, 4. 4. ..... trade is such type of International trade in case of which imported goods could be exported to a third country. A) Import. B) Export. C) Entrepot. D) None of the above. Show Answer Correct Answer: C) Entrepot. 5. What does a product life cycle consist of? A) Introduction, growth, maturity and decline. B) Growth, maturity, decline and death. C) Appearance, fashion, growth and escalation. D) Rise, change, development, death and rebirth. Show Answer Correct Answer: A) Introduction, growth, maturity and decline. 6. The ability of a country to produce more goods at a lower cost. A) Comparative advantage. B) Specialization. C) Luck. D) Genuine skill. Show Answer Correct Answer: A) Comparative advantage. 7. Which term refer to the exchange of goods and services between different countries? A) Good And service trade. B) International trade. C) Domestic trade. D) All the answers above. Show Answer Correct Answer: B) International trade. 8. Places regulation on international trade which makes sure markets function properly A) Foreign direct investment. B) Free trade. C) Protectionism. D) Growth in GDP. Show Answer Correct Answer: C) Protectionism. 9. International trade is useful for expanding the market for a product. This system is carried out by making a trade agreement with a country, which is a type of international trade ..... A) Consignment. B) Border Crossing. C) Package Deal. D) Overland Border Crossing. Show Answer Correct Answer: C) Package Deal. 10. What is a local content requirement (LCR)? A) A demand for a specific fraction of a good to be produced domestically. B) A bureaucratic rule that makes it difficult for imports to enter a country. C) A tax placed on the export of a good. D) A restriction on the quantity of a good that may be imported. Show Answer Correct Answer: A) A demand for a specific fraction of a good to be produced domestically. 11. Why is a weaker dollar bad for US importers and foreign exporters? A) US importers feel like they get less for their money when exchanging. B) Foreign importers feel like they could have more purchasing power. C) Weak dollars negatively impact non-industrialized countries. D) There is no negative effect of a weaker dollar. Show Answer Correct Answer: A) US importers feel like they get less for their money when exchanging. 12. Where is the headquater of WTO located? A) New York, United States. B) Hanoi, Vietnam. C) Tokyo, japan. D) Geneva, Switzerland. Show Answer Correct Answer: D) Geneva, Switzerland. 13. A discriminatory act carried out de facto is reflected in..... A) Enforced rules. B) Additional policies or procedures imposed. C) Rates and fees charged. D) Everything is wrong. Show Answer Correct Answer: B) Additional policies or procedures imposed. 14. Without trade, markets are large enough to support the production necessary to achieve economies of scale. A) True. B) False. Show Answer Correct Answer: B) False. 15. A majority of the total world merchandise trade occurs among ..... A) Middle-income and low-income economies. B) High-income economies. C) Newly industrialized countries. D) Emerging markets. Show Answer Correct Answer: B) High-income economies. 16. British economist who explained the Recardian Theory A) ADAM SMITH. B) RICARDO SOLIS. C) DAVID RICARDO. D) ADAM SCOTTS. Show Answer Correct Answer: C) DAVID RICARDO. 17. What is Import Trade? A) The purchase or buying of goods or services from a foreign country for consumption in the importing country. B) The sale of goods to a foreign country. C) The export of goods from one country to another. D) The re-export of goods from a third country. Show Answer Correct Answer: A) The purchase or buying of goods or services from a foreign country for consumption in the importing country. 18. The oil before refining process is called ..... A) Coconut oil. B) Castor Oil. C) Crude oil. D) None of above. Show Answer Correct Answer: C) Crude oil. 19. Quota will gives an extra benefit to the government in term of addional revenue A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. The United States does not allow any company to legally import goods from Cuba. This type of trade barrier is known as a/an ..... (check all that apply) A) Standard. B) Subsidy. C) Quota. D) Embargo. E) Tariff. Show Answer Correct Answer: D) Embargo. ← 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