This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 123 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 123 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Revenue tariffs are levied to do which of the following? A) Lower exports. B) Protect domestic producers. C) Raise money. D) Increase imports. Show Answer Correct Answer: C) Raise money. 2. Purchasing goods from a foreign country is called A) IMPORT. B) EXPORT. C) ENTREPOT. D) RE-EXPORT. Show Answer Correct Answer: A) IMPORT. 3. Packing goods in small, separable units A) Cross-docking. B) Order picking. C) Break-bulk. D) None of above. Show Answer Correct Answer: C) Break-bulk. 4. What are the advantages of trade? A) Competition for domestic businesses. B) Unemployment. C) Poverty. D) Lower prices and increased choice for consumers. Show Answer Correct Answer: D) Lower prices and increased choice for consumers. 5. The dynamic increasing returns to scale exist if average costs fall as cumulative output over time rises A) True. B) False. Show Answer Correct Answer: A) True. 6. Goods or merchandise A) Costs. B) Fine. C) Well. D) Goods. Show Answer Correct Answer: D) Goods. 7. Trade between two countries is known as ..... A) External. B) Internal. C) Inter-regional. D) None of the above. Show Answer Correct Answer: A) External. 8. According to the strategic trade policy argument: A) Government intervention is not required cause firm can borrow money from the capital markets to finance the requiredinvestments. B) Selling goods in a foreign market at below their fair price is legally and ethically justified. C) Government support can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors. D) A government should use subsidies to support promising firms. Show Answer Correct Answer: C) Government support can help domestic firms overcome the first-mover advantages enjoyed by foreign competitors. 9. A business enterprise that a domestic company and a foreign company undertake together. A) Globalization. B) Joint venture. C) Mini-national. D) Infrastructure. Show Answer Correct Answer: B) Joint venture. 10. ..... measure of how many people live in a specific area. A) Population density. B) Unemployment. C) Migration. D) Birth rate. Show Answer Correct Answer: A) Population density. 11. Canada is our largest trading partner given the fact that we share a lengthy border that facilitates trade. A) True. B) False. Show Answer Correct Answer: A) True. 12. This document is used when sending goods by sea: A) Airway Bill. B) Bill of Lading. C) Certificate of Origin. D) Consular Invoice. Show Answer Correct Answer: B) Bill of Lading. 13. Nike only releases certain types of Jordans on Christmas and Thanksgiving Day each year. Due to high consumer demand, there is only a limited amount.What is this an example of? A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: B) Quota. 14. A stop or ban on imported goods from a country is ..... A) A tariff. B) A quota. C) An embargo. D) None of above. Show Answer Correct Answer: C) An embargo. 15. What goods are the tariffs levied on? A) Foreign products. B) Agricultural products. C) Domestic products. D) Food. Show Answer Correct Answer: A) Foreign products. 16. Computers made in China are used by students in Italy. A) Import. B) Export. Show Answer Correct Answer: A) Import. 17. Compute for the per capita GDP if:Total GDP-Php400, 000, 000Total population-100, 000, 000 (a) A) A Php4. B) Php40. C) Php400. D) None of above. Show Answer Correct Answer: A) A Php4. 18. This is an agreement which eliminates or greatly reduces tariffs on trade. A) Domestic trade. B) Free trade. C) European Union. D) Common market. Show Answer Correct Answer: B) Free trade. 19. Define the advising bank. A) An advising bank is a bank that elects to advise a Documentary Collection (DC) to the importer. The advising bank can choose whether or not to advise the DC if nominated by the issuing bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the importer that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the collecting bank without delay. B) An advising bank is a bank that elects to advise a Documentary Cash (DC) to the beneficiary. The advising bank can choose whether or not to advise the DC if nominated by the collecting bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the beneficiary that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the collecting bank without delay. C) An advising bank is a bank that elects to advise a Documentary Credit (DC) to the beneficiary. The advising bank can choose whether or not to advise the DC if nominated by the issuing bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the beneficiary that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the issuing bank without delay. D) All the above. Show Answer Correct Answer: C) An advising bank is a bank that elects to advise a Documentary Credit (DC) to the beneficiary. The advising bank can choose whether or not to advise the DC if nominated by the issuing bank. If the bank chooses to advise the DC, it shall take reasonable care to check the authenticity of the DC. If the DC cannot be authenticated and the bank still chooses to advise the DC, it can do so but it must inform the beneficiary that the authenticity of the DC cannot be established and also inform the bank from which the DC was received. If the bank elects not to advise the DC, it must also inform the issuing bank without delay. 20. Who has the absolute advantage for capes? A) Camelot. B) Avalon. Show Answer Correct Answer: A) Camelot. ← 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