This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 133 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 133 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Goods and services a nation buys from other countries A) Imports. B) Exports. C) Tariffs. D) Embargo. Show Answer Correct Answer: A) Imports. 2. Country A sells goods to Country B. Country C acts as..... A) Exporter. B) Importer. Show Answer Correct Answer: B) Importer. 3. Define balance of trade. A) The difference between the value of a country's exports and the value of its imports. B) The total value of a country's imports. C) The difference between the value of a country's imports and the value of its exports. D) The total value of a country's exports. Show Answer Correct Answer: A) The difference between the value of a country's exports and the value of its imports. 4. When it comes to disadvantages of international trade, which is not MENTIONED as a drawback of international trade? A) Risk of proprietary information theft. B) Political risk. C) Comparative cost. D) World war. Show Answer Correct Answer: C) Comparative cost. 5. This term means that the quoted price includes the cost of goods, insurance, and transportation to the destination port. A) CFR. B) CIF. Show Answer Correct Answer: B) CIF. 6. There was an increase in the value of the United States (US) dollar against the South African Rand. What is a result of this? A an increase in the number of exports from the US to South Africa B an increase in the number of imports to the US from South Africa C fewer people from the US spend holidays in South Africa D more people from South Africa spend holidays in the US A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 7. A limit on the number of cars that can be brought into the country called as ..... A) Voluntary export constraint. B) Custom duty. C) Import quota. D) Tariff. Show Answer Correct Answer: C) Import quota. 8. What is one limitation of the theory of comparative advantage regarding the assumption of multiple countries involved in trade? A) It assumes there are only two countries involved in trade. B) It assumes that everyone has the same knowledge of prices and quantities in the market at the same time. C) It assumes that technology remains constant. D) It assumes that every country should specialize in producing the good with the lowest opportunity cost. Show Answer Correct Answer: A) It assumes there are only two countries involved in trade. 9. When the FED orders a tight money policy? A) More money is put out into circulation. B) Less money is put into circulation. C) Circulation stays the same. D) Interest rates rise. Show Answer Correct Answer: B) Less money is put into circulation. 10. Which country's economic contraction was lower than the global average? A) India. B) China. C) USA. D) Germany. Show Answer Correct Answer: B) China. 11. The United States IMPORTS A) Corn. B) Airplanes. C) Toys. D) None of above. Show Answer Correct Answer: C) Toys. 12. Freight forwarder: A) Company which carries goods by road. B) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. C) Company which specializes in the speedy and secure delivery of small goods and packages. D) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. E) Company that transport or conveys goods. Show Answer Correct Answer: B) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. 13. Another term for a fall in the exchange rate is ..... A) Appreciation. B) Inflation. C) Depreciation. D) Deflation . Show Answer Correct Answer: C) Depreciation. 14. Example:The U.S. president increased the amount of imported peanuts allowed into the country by 100 million pounds per year. A) Quota. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: A) Quota. 15. Does CITES have direct international power to enforce its regulations? A) Yes. B) No. Show Answer Correct Answer: B) No. 16. As a general rule, the Australian government encourages trade liberalisation. A) True. B) False. Show Answer Correct Answer: A) True. 17. What is a trade agreement? A) A tax imposed on imported goods. B) A restriction on the quantity of goods that can be imported. C) Financial assistance provided to domestic producers for exporting goods. D) An agreement between countries to eliminate trade barriers and promote trade. Show Answer Correct Answer: D) An agreement between countries to eliminate trade barriers and promote trade. 18. Cheese is sold for $ 4 a pound. Wine is sold for $ 7 a gallon. It takes 1 hour of labor to produce a pound of cheese.It takes 2 hours of labor to produce a gallon of wine. What will the workers produce? A) Cheese. B) Wine. Show Answer Correct Answer: A) Cheese. 19. The table shows a country's exports and imports.What was the country's balance of trade in goods and services? A a deficit of $ 7 million B a deficit of $ 13 million C a surplus of $ 7 million D a surplus of $ 13 million A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 20. The country that exports a lot of motorcycles to Indonesia is ..... A) Japan. B) English. C) Russia. D) Spanish. Show Answer Correct Answer: A) Japan. ← 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