This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 138 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 138 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. *If an exchange rate is more THAN 1, then the dollar is ..... than that currency and those foreign goods and services cost us ..... A) Stronger; more. B) Stronger; less. C) Weaker; more. D) None of above. Show Answer Correct Answer: B) Stronger; less. 2. Globalization is ..... A) Economic growth. B) Growth of global connectivity, integration and interdependence in all the spheres. C) Economic and social pressure from migration. D) None of above. Show Answer Correct Answer: B) Growth of global connectivity, integration and interdependence in all the spheres. 3. Exporting can enable a firm to achieve economies of scale, thereby raising its unit costs. A) True. B) False. Show Answer Correct Answer: B) False. 4. How does foreign investment benefit the Australian economy? A) It reduces employment and living standards. B) It decreases tax revenue for the government. C) It increases sources of finance for Australian businesses and creates jobs. D) It leads to higher interest rates on borrowings. Show Answer Correct Answer: C) It increases sources of finance for Australian businesses and creates jobs. 5. Occurs in a market when one of the conditions in a perfectly competitive market are left unmet A) Perfect competition. B) Imperfect competition. C) Monopolies. D) Oligopoly. Show Answer Correct Answer: B) Imperfect competition. 6. Which government agency oversees customs regulations in Mexico? A) Secretariat of Finance and Public Credit. B) Ministry of Economy. C) Secretary of Foreign Relations. D) None of above. Show Answer Correct Answer: A) Secretariat of Finance and Public Credit. 7. Resources available = 200 units for each country Production in GhanaCocoa = 10 tonsRice = 5 tons Production in South KoreaCocoa = 2.5 tonsRice = 10 tons Question:After specialization, which country will export Rice? A) Ghana. B) South Korea. Show Answer Correct Answer: B) South Korea. 8. The diagram shows China's trade with Brazil for two years.What happened to China's trade balance with Brazil between year 1 and year 2? A It experienced a falling surplus. B It experienced a rising deficit. C It moved from deficit to surplus. D It moved from surplus to deficit. A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. 9. The physical development of a country, such as roads, ports, and utilities. A) Infrastructure. B) Mini-national. C) Joint venture. D) Globalization. Show Answer Correct Answer: A) Infrastructure. 10. You travel out of the country and purchase a gift from Germany. Upon returning to the airport in the US, the gift goes through inspection and you are charged for bring the item back into the US. This is an example of a A) Trade barrier. B) An embargo. C) A customs duty. D) Comparative advantage. Show Answer Correct Answer: C) A customs duty. 11. Place an absolute ban on imports or exports in a certain country A) Embargoes. B) Specific Tariff. C) To value. D) Revenue Tariff. Show Answer Correct Answer: A) Embargoes. 12. ..... is an error in Letter of Credit that may result in payment not being released A) Documentation Error. B) Foreign Exchange Rate. C) Letter of Guarantee. D) None of above. Show Answer Correct Answer: A) Documentation Error. 13. Why do countries trade with each other? A) To make money. B) To get goods or services they can't produce themselves. C) To show off their cool products. D) None of above. Show Answer Correct Answer: B) To get goods or services they can't produce themselves. 14. Not trading with nations who create products using child labor is used in the argument for A) Domestic Jobs. B) National Defense. C) Human Rights. D) Environment. Show Answer Correct Answer: C) Human Rights. 15. Value gained when a country specializes in producing and selling certain goods. A) Competitive advantage. B) Specialized advantage. C) Comparative advantage. D) Trade surplus. Show Answer Correct Answer: C) Comparative advantage. 16. The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States. A) True. B) False. Show Answer Correct Answer: B) False. 17. A trade deficit occurs when ..... A) Exports and imports are the same. B) Exports are higher than imports. C) Exports are lower than imports. D) None of above. Show Answer Correct Answer: C) Exports are lower than imports. 18. Which factor of production refers to natural resources and raw materials used in production? A) Labor. B) Capital. C) Entrepreneurship. D) Land. Show Answer Correct Answer: D) Land. 19. Term draft A) Time draft. B) Forfaiting. C) T-Bills. D) Draft. Show Answer Correct Answer: A) Time draft. 20. Travis takes two trips to Ecuador. On his first trip, he finds that one US dollar is worth 25000 Ecuadorian Sucre. On his return trip, he finds that the dollar is now worth 26000 Ecuadorian Sucre. What is a LIKELY result of this change in exchange rates? A) American Imports from Ecuador increase. B) Ecuadorians invest more in infrastructure. C) There is not enough information to answer. D) American Exports to Ecuador Increase. Show Answer Correct Answer: A) American Imports from Ecuador increase. ← 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