This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The appeal process can only be carried out against: A) Factual issues that occurred. B) Legal issue violated. C) Historical and sociological issues of the dispute that occurred. D) The issue of the impact of the losses incurred. Show Answer Correct Answer: B) Legal issue violated. 2. Politics naturally controls and protects the interest of many groups through these tools except A) Provisions. B) Subsidies. C) Regulations. D) Market. Show Answer Correct Answer: D) Market. 3. What are immigrant remittances? A) Money sent by workers to support their families in their home country. B) Money sent by tourists to support local economies. C) Money sent by investors to fund new projects in foreign countries. D) Money sent by governments to provide aid to developing nations. Show Answer Correct Answer: A) Money sent by workers to support their families in their home country. 4. What is one limitation of the theory of comparative advantage regarding the assumption of resource allocation? A) It assumes that every country should specialize in producing the good with the lowest opportunity cost. B) It assumes that countries produce identical goods. C) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. D) It assumes that technology remains constant. Show Answer Correct Answer: A) It assumes that every country should specialize in producing the good with the lowest opportunity cost. 5. What is the significance of the Silk Road in the context of global trade? A) The Silk Road only connected countries within Asia. B) The Silk Road led to the isolation of Asian and European cultures. C) The Silk Road facilitated the exchange of goods and ideas between Asia and Europe. D) The Silk Road has no impact on global trade. Show Answer Correct Answer: C) The Silk Road facilitated the exchange of goods and ideas between Asia and Europe. 6. Well-designed products do not need to be changed to suit different countries or cultures. A) True. B) False. Show Answer Correct Answer: B) False. 7. Goods and services consumed in a country but which have been purchased from other countries A) Trade Surplus. B) Imports. C) Globalization. D) Quota. Show Answer Correct Answer: B) Imports. 8. The aim of protection policies in international trade is..... A) Replacing imported goods with your own products. B) Protecting the domestic economic sector. C) Encourage domestic trade. D) Encourage exports abroad. Show Answer Correct Answer: B) Protecting the domestic economic sector. 9. South Africa can produce 1 barrel of oil using 3 units of land and can produce 1 karat of diamonds using 1 unit of land. On the other hand, Saudi Arabia can produce 1 barrel of oil using 1/2 unit of land and can produce 1 karat of Diamond using 6 units of land. Which country has absolute advantage in diamond production? A) Saudi Arabia. B) South Africa. C) Both Countries. D) None. Show Answer Correct Answer: B) South Africa. 10. How do you know your market is having a trade deficit? A) When a net export is negative?. B) When a net export is even?. C) When a net export is stagnate?. D) None of above. Show Answer Correct Answer: A) When a net export is negative?. 11. The theory of comparative advantage put forward by David Ricardo is outlined in a book entitled ..... A) The Economics. B) The General Theory of Interest and Profit. C) Summa Arithmetic. D) The Principle of Economic. Show Answer Correct Answer: D) The Principle of Economic. 12. Which of the following are ways in which the government regulates trade? A) Quotas. B) Tariffs. C) Embargoes. D) All of the above. Show Answer Correct Answer: D) All of the above. 13. A law that cuts off trade with a specific country A) Embargo. B) Legislation. C) Economic Interdependence. D) None of above. Show Answer Correct Answer: A) Embargo. 14. Which is the most BASIC difference between international trade and domestic trade? A) Trade barrier is often likely to appear when trading. B) Different payment is concerned to be a case. C) Transporting risks cause greater loss to international trade than domestic trade. D) International trade refers to different countries while domestic trade refers to different regions. Show Answer Correct Answer: D) International trade refers to different countries while domestic trade refers to different regions. 15. When a producer can produce a larger quantity of a given good/service than another producer, they can be said to have an ..... A) Comparative Advantage. B) Advanced State of Economics. C) Absolute Advantage. D) Arkadelphia Pocket-rocket. Show Answer Correct Answer: C) Absolute Advantage. 16. If the exchange rate is £1 = $ 1.25, how much does $ 1 equal in £ pounds? A) £0.80. B) £0.85. C) £0.75. D) £1.25. E) None of the answers. Show Answer Correct Answer: A) £0.80. 17. Trade within one region or country is called: A) Domestic trade. B) International trade. C) Exports. D) None of the above. Show Answer Correct Answer: A) Domestic trade. 18. Which of the following factors influence trade? A) The stage of development of a product. B) The relative price of factors of productions. C) Government. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. Which of the following actions might be part of a protectionist economic policy? A) Reducing barriers to trade. B) Signing free trade agreements. C) Cutting tariffs on imported goods. D) Establishing quotas on imports. Show Answer Correct Answer: D) Establishing quotas on imports. 20. Product life cycle theory focus on the product, not its factor proportions. A) True. B) False. Show Answer Correct Answer: A) True. ← 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