This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 139 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 139 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Fixed limit on the amount of import/export of a product set when trading with another country A) Quota. B) Tariff. C) Foreign Exchange Rate. D) Embargo. Show Answer Correct Answer: A) Quota. 2. Imports and exports are accounted for in a country's current account in the ..... A) Balance of payments. B) Balance of pay. C) Payments of balance. D) None of above. Show Answer Correct Answer: A) Balance of payments. 3. What are the two broad subfield that divides the economics of the international economy? A) International Trade and International Money. B) International Tariff and International Profit. C) International Business and International Investment. D) International Government and International Currency. Show Answer Correct Answer: A) International Trade and International Money. 4. What is the purpose of a trade barrier A) A way to stop or slowdown certain foreign products from freely coming into a country. B) Trade restriction. C) Protectionism. D) Quota. Show Answer Correct Answer: A) A way to stop or slowdown certain foreign products from freely coming into a country. 5. A document that a government issues to an exporter granting permission to sell certain goods to a given country A) Export Licence. B) Import Licence. C) Letters of Credit. D) Manifest. Show Answer Correct Answer: A) Export Licence. 6. If trade was not possible, consumers would not enjoy a greater variety of goods. A) True. B) False. Show Answer Correct Answer: A) True. 7. The text is about ..... A) Means of transportation. B) Means of communication. C) Means of international transportation. D) None of above. Show Answer Correct Answer: C) Means of international transportation. 8. When the United States dollar depreciates, which of the following is a likely effect? A) United States exports increase. B) United States imports increase. C) Travel abroad becomes more affordable. D) Japanese stop investing in American businesses. Show Answer Correct Answer: A) United States exports increase. 9. The theory of country similarity claims that ..... determines trade between firms. A) Size of industry. B) Similar stage of development. C) Factor endowment. D) Firm efficiency. Show Answer Correct Answer: B) Similar stage of development. 10. Which currency is widely accepted and used throughout Canada? A) Pesos. B) Dollars. C) Canadian Dollars. D) Canadian Pesos. Show Answer Correct Answer: C) Canadian Dollars. 11. Import substitution economics promotes competition. A) TRUE. B) Wrong. Show Answer Correct Answer: B) Wrong. 12. Many countries want to protect their local industries from foreign competition A) NATIONAL POLICIES. B) DOCUMENTATION. C) PROTECTIONISM. D) None of above. Show Answer Correct Answer: C) PROTECTIONISM. 13. What is International Business? A) Devised transactions in advance. B) Links all cities, institutions and individuals. C) International integration and manufacturing process and national market for good and services. D) Process of liberalization of national economics, reducing tade restrictions or barries, free movement of foreign direct investment, stregthening the role of international companies in the international production. Show Answer Correct Answer: D) Process of liberalization of national economics, reducing tade restrictions or barries, free movement of foreign direct investment, stregthening the role of international companies in the international production. 14. What are tangible products that can be bought or sold? A) Goods. B) Services. C) Intangible assets. D) Digital goods. Show Answer Correct Answer: A) Goods. 15. In ..... there is only one (dominant) seller. That company offers a product to the market that has no substitute. A) Perfect competition. B) Imperfect competition. C) Monopolies. D) Oligopoly. Show Answer Correct Answer: C) Monopolies. 16. A country that has a lower opportunity cost of producing a good: A) Has a comparative advantage. B) Can produce the good using fewer resources than another country. C) Requires fewer labor hours to produce the good. D) All of the answers are correct. Show Answer Correct Answer: B) Can produce the good using fewer resources than another country. 17. In portfolio analysis, when there are many suppliers who can provide products or are easy to find, this is an example of a quadrant A) Routine. B) Leverage. C) Bottleneck. D) Critical. Show Answer Correct Answer: A) Routine. 18. A tax placed on imports A) Quota. B) Duty Tax. C) Protectionism. D) Tariff. Show Answer Correct Answer: D) Tariff. 19. Absolute advantage theory was proposed by ..... in 1776. A) David Ricardo. B) Adam Smith. C) John Dunning. D) Karl Marx. Show Answer Correct Answer: B) Adam Smith. 20. Providing a forum for intergovernmental celebrations, undertaking research, policy analysis and data collection, Providing technical assistance to developing countries. A) WIPO. B) UNCTAD. C) GATT. D) EU. Show Answer Correct Answer: B) UNCTAD. ← 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