This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 134 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 134 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. When your exports are greater than your imports, this exists? A) Trade fails. B) Trade surplus. Show Answer Correct Answer: B) Trade surplus. 2. What occurs when one country refuses to buy goods from another country? A) Quota. B) To value. C) Boycott. D) Dumping. Show Answer Correct Answer: C) Boycott. 3. Choose the best answer about the relation between interest rate and exchange rate A) A higher interest rate attracts more currency outflow of a country. B) A higher interest rate attracts more foreign reserve. C) A lower interest rate scares away foreign importer. D) A lower interest rate motivates local depositors to buy foreign stocks and bonds. Show Answer Correct Answer: B) A higher interest rate attracts more foreign reserve. 4. What is Distribution Costs referring to as a negative of Global trade A) Higher transport costs as Ireland is an Island nation. B) A country may not have the natural resources needed to make products. C) Larger incoming companies may lead to closure of smaller Irish companies. D) Companies will have to change their packaging to suit certain cultures. Show Answer Correct Answer: A) Higher transport costs as Ireland is an Island nation. 5. Selling goods and services to another country is considered? A) Exporting. B) Importing. Show Answer Correct Answer: A) Exporting. 6. Package A) Packaging. B) Packing. C) Package. D) Packet. Show Answer Correct Answer: C) Package. 7. Mercantilism..... A) Suggests that a country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive. B) Maintains that a country's wealth is measured by its holdings of gold and silver. C) Suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance. D) Argues that most trade in manufactured goods should be between countries with similar per capita incomes. Show Answer Correct Answer: B) Maintains that a country's wealth is measured by its holdings of gold and silver. 8. Among the objectives countries' have when seeking regional trade agreements, we don't find: A) Strategic linkage. B) Strengthening domestic policy reform. C) Improving diplomatic relations. D) None of above. Show Answer Correct Answer: C) Improving diplomatic relations. 9. What determines what goods a country will proudce? A) Its president. B) Its resources. C) Its congress. D) None of above. Show Answer Correct Answer: B) Its resources. 10. Under the slave trade system dutch, spaniards and british captured ..... people and transported them to newly discovered ..... A) African and America. B) African and Australia. C) American and Antartica. D) Indian and Antarctica. Show Answer Correct Answer: A) African and America. 11. World Trade A) Trade between different regions or countries. B) Trade within the same region or country. C) Method used to stop the shipment of certain products to and from a particular country for economic or political reasons. D) Special tax placed on foreign goods sold in the United States. Show Answer Correct Answer: A) Trade between different regions or countries. 12. From the question, what country's national flag is this? A) Indonesia. B) England. C) Singapore. D) Poland. Show Answer Correct Answer: C) Singapore. 13. Free traders often argue that new or emerging industries should be protected from foreign competition forever. A) True. B) False. Show Answer Correct Answer: B) False. 14. If nations limit imports of clothing, who will benefit? A) Domestic Consumers of clothing. B) Domestic producers of clothing. C) Foreign Producers of clothing. D) Department stores who sell clothing. Show Answer Correct Answer: B) Domestic producers of clothing. 15. International trade means A) One of the pillars of the world abridgement. B) One of the pillars of the world thrift. C) One of the pillars of the world. D) One of the pillars of the world economy. Show Answer Correct Answer: D) One of the pillars of the world economy. 16. The benefits of interstate trade for consumers are ..... A) Earn profits through specialization. B) Get to know new production technology. C) Friendship between countries. D) Have a large selection of goods. Show Answer Correct Answer: D) Have a large selection of goods. 17. What is the main purpose of international trade? A) To make both parties better off. B) To benefit the exporting country. C) To eliminate competition between countries. D) To increase government revenue. Show Answer Correct Answer: A) To make both parties better off. 18. You are the CEO of a company. You want to develop overseas markets and sell products abroad, but you find that the destination country will impose a very high fee on imported products from other countries. In order to avoid this fee, you choose to directly If you open a branch overseas and directly invest in production and sales locally, is this an international trade act? A) In most cases, yes. B) In most cases, no. Show Answer Correct Answer: B) In most cases, no. 19. It is when a company invests resources in business activities outside its home country A) INTERNATIONAL COMPANY. B) BUSINESS OUTSIDE. C) INTERNATIONAL INVESTMENT. D) INTERNATIONALIZE. Show Answer Correct Answer: C) INTERNATIONAL INVESTMENT. 20. A situation that occurs when individuals or businesses produce a narrow rand of products A) Tariff. B) Quota. C) Specialization. D) None of above. Show Answer Correct Answer: C) Specialization. ← 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