This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 130 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 130 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Larger export markets to sell your goods, if you are a country looking to do business. A) Pro. B) Con. Show Answer Correct Answer: A) Pro. 2. Trade between most nations is presently characterized by a certain degree of isolationism. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 3. Which of the following is not the background to the establishment of the ASEAN Economic Community (AEC) is..... A) The importance of the formation of a stable, prosperous and competitive ASEAN region. B) The need for ASEAN member countries to protect domestic producers. C) The ideals of fair and equitable economic growth. D) Reduce poverty and inequality between ASEAN member countries. Show Answer Correct Answer: B) The need for ASEAN member countries to protect domestic producers. 4. 'planning, organizing and managing operations in a company that supplies goods' A) Warehousing. B) Logistics. C) Managing. D) None of above. Show Answer Correct Answer: B) Logistics. 5. All of the following are true regarding international trade EXCEPT A) Countries experience a trade deficit when imports are greater than exports. B) Net exports will increase when that country's currency depreciates. C) An increase in exports will decrease a country's net exports. D) The balance of payment is a summary of a country's transactions with other countries. E) The primary components of the balance of payments are the current account and the financial account. Show Answer Correct Answer: C) An increase in exports will decrease a country's net exports. 6. A regulation that limits the number of items that can be sold in one country: A) Tariff. B) Quota. C) Embargo. D) Boycott. Show Answer Correct Answer: B) Quota. 7. Helps protect the economy and certain industries of a country from foreign competition A) Protectionism. B) Quota. C) Voluntary restriction. D) Tariff. Show Answer Correct Answer: A) Protectionism. 8. Fixed and floating are both types of what? A) Exchange Rates. B) Trade Barriers. C) Opportunity Costs. D) Trade Deficits. Show Answer Correct Answer: A) Exchange Rates. 9. The movement to a higher community indifferent curve because of ..... A) Incomplete specialization and trading in both countries. B) Economies of scale. C) Product differentiation. D) None of above. Show Answer Correct Answer: A) Incomplete specialization and trading in both countries. 10. Which group benefits when the US dollar depreciates (weak dollar)against other currencies? A) US citizens traveling in foreign countries. B) Foreign governments with US Treasury Bonds. C) Foreign citizens vacationing in the US. D) US citizens buying foreign goods and services. Show Answer Correct Answer: C) Foreign citizens vacationing in the US. 11. Bank transfers and bank cheques are often referred to as ....., in comparison with documentary payments as collections and letters of credit. A) Clean payments. B) Clear payments. C) Pure payments. D) Dark payments. Show Answer Correct Answer: A) Clean payments. 12. Which is NOT a regional trade agreement A) OPEC. B) NAFTA. C) EU. D) ASEAN. Show Answer Correct Answer: A) OPEC. 13. Which of the following is not the function of the World Bank? A) To provide long term loan to the member countries. B) To provide loan to private investors belonging to member countries on its own guarantee. C) To ensure exchange rate stability. D) To provides loan mainly for productive activities. Show Answer Correct Answer: C) To ensure exchange rate stability. 14. NAFTA was organized to benefit the economies of A) Peru, Bolivia, and Brazil. B) Korea, China, and Japan. C) Canada, Mexico, and the United States. D) France, Germany, and Spain. Show Answer Correct Answer: C) Canada, Mexico, and the United States. 15. Households do NOT A) Provide their time and skills or 'labour' (a resource) to Firms in exchange for income (wages). B) Pay taxes to the Government. C) Consume and purchase goods and services from Firms. D) Produce output (goods and services), which they sell to consumers for a price. So they receive revenue from the Household sector. Show Answer Correct Answer: D) Produce output (goods and services), which they sell to consumers for a price. So they receive revenue from the Household sector. 16. Creating specially designed products or promotions for certain countries or regions. A) Joint venture. B) Globalization. C) Customization. D) Multinational. Show Answer Correct Answer: C) Customization. 17. Global exchange agency which handles international trading A) World Trade Organization. B) Free Trade Zone. C) Tariff. D) Free Trade. Show Answer Correct Answer: A) World Trade Organization. 18. International trade arises due to similarities..... A) Importance. B) Natural resources. C) Geographical location. D) Ideology. Show Answer Correct Answer: A) Importance. 19. The MFN principle means that..... A) There can be no discrimination against developing countries. B) There can be no discriminatory treatment against developed countries. C) There can be no discrimination against fellow Member States. D) There can be no discrimination against new Member States. Show Answer Correct Answer: C) There can be no discrimination against fellow Member States. 20. The customs union exception was designed, in part, to accommodate the formation of the European Economic Community (EC) in ..... A) 1958. B) 1960. C) 1945. D) 1986. Show Answer Correct Answer: A) 1958. ← 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