This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 14 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. This is the best alternative that we give up, or forgo, when we make a choice or decision. A) Sunk Cost. B) Opportunity Cost. C) Sacrificed Cost. D) Decision Cost. Show Answer Correct Answer: B) Opportunity Cost. 2. What is the name of the approach in which international trade is solely due to international differences in the productivity of labor? A) Economic Model. B) Specific Factors Model. C) Ricardian Model. D) Heckscher-Ohlin Model. Show Answer Correct Answer: C) Ricardian Model. 3. Which of the following reasons why firms expand internationally? A) Profit motives, money motives, market motives. B) Economic motives, Market Motives, Strategic Motives. C) Economic motives, Money motives, Profit motives. D) Profit motives, economic motives, Market Motives. Show Answer Correct Answer: B) Economic motives, Market Motives, Strategic Motives. 4. What is the term for the exchange of goods between different parts of a multinational? A) International trade. B) Intrafirm trade. C) Domestic trade. D) Interfirm trade. Show Answer Correct Answer: B) Intrafirm trade. 5. The key reason why international trade has increased so rapidly is due to A) The rise of dictators. B) A change in consumer tastes. C) Technological advancements and trade agreements. D) All of the above. Show Answer Correct Answer: C) Technological advancements and trade agreements. 6. What is elements of Field of activity about Domestics Trade? A) Within the country. B) A global scale. C) Carry more risks and complicated. D) Multiple nations. Show Answer Correct Answer: A) Within the country. 7. Even if a country has a higher GDP, why might it have a lower standard of living? A) It doesn't make enough goods. B) It doesn't make enough art. C) The population is larger. D) If the country has a high GDP, it's standard of living is always high. Show Answer Correct Answer: C) The population is larger. 8. In negotiation tactics, the emotional reaction when faced with something unpleasant is called: A) Low Ball. B) The Russian Front. C) Flattery. D) The Flinch. Show Answer Correct Answer: D) The Flinch. 9. How would inexpensive lumber from Canada affect the U.S. market for new homes? A) Prices of new homes would increase. B) Credit available for new homes would increase. C) Prices of new homes would decrease. D) Transaction costs for new homes would decrease. Show Answer Correct Answer: C) Prices of new homes would decrease. 10. If, beginning from a free trade equilibrium, the terms of trade improve for a country, then it will A) Increase production of its import competing good. B) Increase consumption of its export good. C) Increase the quantity of its imports. D) Experience an export-biased shift in its production possibility frontier. Show Answer Correct Answer: C) Increase the quantity of its imports. 11. ..... represents the defined form of how the payment shall be made, ie on open account payment terms through a bank transfer, or through documentary collection or letter of credit. A) Methods of payment. B) Terms of payment. C) Time value of money. D) Competitive situation. Show Answer Correct Answer: A) Methods of payment. 12. What is a tax on imported products called? A) A tariff. B) A quota. C) A value added tax. D) An embargo. Show Answer Correct Answer: A) A tariff. 13. Suppose you are the CEO of a company and you want to enter the overseas market, so you sell the goods to an overseas dealer and let them sell them locally (overseas). Is your act of selling the goods to the dealer an international trade? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 14. Country X can manufacture a particular product better and at a lower cost than country Y can. What conclusion can be drawn from this situation? A) Country X has solved the problem of scarcity. B) Country X should discontinue making that product. C) Country Y should try to produce the same product. D) Country X should sell that product to Country Y. Show Answer Correct Answer: D) Country X should sell that product to Country Y. 15. People who favor few or no trade restrictions A) Protectionists. B) Tariff. C) Free traders. D) Balance of payments. Show Answer Correct Answer: C) Free traders. 16. U.S. has an absolute advantage over Mexico in producing two goods, beef and vegetables. A) True. B) False. Show Answer Correct Answer: A) True. 17. Incoterms are specified. Conditions of liability, transfer of risk, ....., are the responsibility of the seller or buyer. A) Product quality. B) Various expenses. Show Answer Correct Answer: B) Various expenses. 18. Financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. A) Barriers to trade. B) Subsidies. C) Protectionism. D) Exchange rate. Show Answer Correct Answer: B) Subsidies. 19. Malaysia and Indonesia specialise in the production of palm oil.What is a disadvantage of specialisation? A) Concentration of labour in the activity in which it is most productive. B) Creation of jobs to meet world demand. C) Reliance on trade with other countries for other goods. D) Rising palm oil prices. Show Answer Correct Answer: C) Reliance on trade with other countries for other goods. 20. The country of Joetopia produces 4 billion gallons of cola, while the country of Amystan makes 400 million gallons of soda. Joetopia has an Absolute Advantage. A) True. B) False. Show Answer Correct Answer: A) True. ← 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