This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following states in India has three major sea ports? A) Tamil Nadu. B) Kerala. C) Maharashtra. D) West Bengal. Show Answer Correct Answer: A) Tamil Nadu. 2. One country can have a Comparative Advantage over another country with some products, and an Absolute Advantage over that same country in another product. A) True. B) False. Show Answer Correct Answer: A) True. 3. Why do countries trade? A) Because everyone else does it. B) Because it's cheaper. C) Because it brings in more money. D) None of above. Show Answer Correct Answer: B) Because it's cheaper. 4. President Trump has enacted tariff barriers against China and a lot of people worried that China might retaliate and enact the same tariff barriers? This event involving: A) Trade war. B) A misallocation of recources. C) The national security. D) The national of domestic jobs. Show Answer Correct Answer: A) Trade war. 5. ..... provide loans to developing countries. A) A. IMF. B) B. GATT. C) SKY. D) D. OIL. Show Answer Correct Answer: A) A. IMF. 6. How much money is the international wildlife trade estimated to be worth annually? A) Millions. B) Billions. C) Thousands. D) Hundreds. Show Answer Correct Answer: B) Billions. 7. In inter-regional trade the flow of goods, services, labor and capital moves freely to any region, whereas in interstate trade the flow of trade can be regulated by each country.The illustration above is a form of the difference between trade between regions and trade between countries in terms of ..... A) Market opportunities. B) The medium of exchange used. C) Coverage area. D) National sovereignty. Show Answer Correct Answer: D) National sovereignty. 8. What does the WTO stand for? A) World Trade Organization. B) World Trucking Organization. C) Work Tariff Origins. D) Work Trade Organization. Show Answer Correct Answer: A) World Trade Organization. 9. Comparative Advantage is based on: A) Absolute efficiency. B) Lowest opportunity cost. C) Government regulations. D) Fixed exchange rates. Show Answer Correct Answer: B) Lowest opportunity cost. 10. Comparative advantage theory was proposed by ..... in 1817 A) Adam Smith. B) John Dunning. C) That is, Hecksher. D) David Ricardo. Show Answer Correct Answer: D) David Ricardo. 11. What is defined as delivery of a service from the territory of one country into the territory of the other country? A) Consumption Abroad. B) Commercial Presence. C) Presence of Natural Persons. D) Cross-Border Trade. Show Answer Correct Answer: D) Cross-Border Trade. 12. The role of aid in promoting growth and development is to help A) Boost capital investment. B) Encourage privatisation and de-regulation. C) Discourage investment in public services. D) Create an effective tax structure. Show Answer Correct Answer: A) Boost capital investment. 13. On 15 April 1994, in Marroco, which agreement is signed to establish WTO? A) General Agreement on Trade and Tariff. B) General Agreement on Trade and Service. C) Marrakesh Agreement. D) Uruguay Agreement. Show Answer Correct Answer: C) Marrakesh Agreement. 14. To promote the protection of intellectual property throughout the world A) WTO. B) WIPO. C) MERCOSUR. D) COMESA. Show Answer Correct Answer: B) WIPO. 15. Tariffs and quotas are designed to A) Promote third-world development. B) Decrease prices consumers pay for goods. C) Protect domestic industry. D) Increase trade deficits. Show Answer Correct Answer: C) Protect domestic industry. 16. In the exporting country, an export subsidy will A) Help consumers and raise the overall economic welfare of the exporting country. B) Hurt consumers but raise the overall economic welfare of the exporting country. C) Hurt consumers and lower the overall economic welfare of the exporting country. D) Help consumers but lower economic welfare of the exporting country. Show Answer Correct Answer: C) Hurt consumers and lower the overall economic welfare of the exporting country. 17. The Pakistan, Sri Lanka FTA came into effect in June ..... A) 2002. B) 2004. C) 2005. D) None of above. Show Answer Correct Answer: C) 2005. 18. Tariffs and quotas usually raise prices. A) False. B) True. Show Answer Correct Answer: B) True. 19. Australia is a price-taker A) True. B) False. Show Answer Correct Answer: A) True. 20. Which of the following is TRUE to define International Trade? A) Transaction made among different companies in a country. B) Transaction made among different countries in the world. C) Transaction made among different individual in a region. D) None of above. Show Answer Correct Answer: B) Transaction made among different countries in the world. ← 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