This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 140 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 140 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Letter of credit also called ..... A) Documentary credit. B) Documentary collection. C) Bank remittance. D) Bank collection. Show Answer Correct Answer: A) Documentary credit. 2. When a country imports more than it exports A) Free trade. B) Trade Surplus. C) Trade Failure. D) Trading Blocs. Show Answer Correct Answer: C) Trade Failure. 3. Mr. Anello's daughter's name is ..... A) Aubrey. B) Madison. C) Laura. D) Olivia. Show Answer Correct Answer: A) Aubrey. 4. What is the purpose of the trade network? A) To maximize exports and minimize imports. B) To create barriers to international trade. C) To increase the country's supply of gold. D) To import goods and services from foreign trading partners. Show Answer Correct Answer: D) To import goods and services from foreign trading partners. 5. A policy concerned with money supply and credit in the economy. A) Fiscal policy. B) Monetary policy. C) Commercial policy. D) Inflation. Show Answer Correct Answer: B) Monetary policy. 6. The benefits of centers of economic excellence for the cultural life of society are..... A) Integration within a community group. B) Increasing the development of transportation facilities and infrastructure. C) Various kinds of social institutions emerged. D) An increase in the number of jobs that will be filled by the community. Show Answer Correct Answer: B) Increasing the development of transportation facilities and infrastructure. 7. When did international trade begin to increase? A) After WWI. B) After the Civil War. C) After WWII. D) Before WWII. Show Answer Correct Answer: C) After WWII. 8. WHY ARE TARIFFS USED? A) TO PROTECT DOMESTIC JOBS AND INDUSTRIES. B) TO RAISE REVENUE FOR GOVERNMENT. C) TO PROTECT STRATEGIC INDUSTRIES. D) ALL OF THE ABOVE. Show Answer Correct Answer: D) ALL OF THE ABOVE. 9. Increasing businesses and high income let the country to export its services and goods. A) True. B) False. Show Answer Correct Answer: A) True. 10. A way for foreign currency and expertise to enter a country allowing for advancement A) Growth in GDP. B) GDP. C) Foreign direct investment. D) FID. Show Answer Correct Answer: C) Foreign direct investment. 11. It is the foundation principle of international trade and uses scarce resources efficiently for example if the Philippines is good when it comes to exporting its people A) Absolute Advantage. B) Economic principles. C) Comparative Advantage Principle. D) Mercantilism. Show Answer Correct Answer: C) Comparative Advantage Principle. 12. Our nation, as well as the people, can gain by having international trade ..... A) By specializing. With trade, everyone ends up better off than before. B) The distribution of natural, human, and capital resources is uneven among nations. C) Not all nations have the same degree of technology. D) Ex:China has an abundant supply of cheap labor, producing labor-intensive goods cheaper than other countries. E) All are correct. Show Answer Correct Answer: E) All are correct. 13. Two countries A and B produce wheat and cloth. In one day country A can produce either 12 units of wheat or 3 units of cloth, while country B can produce 4 units of wheat or 2 units of cloth. If country A and country B trade, according to the theory of comparative advantage A) Country A should export wheat because it has a lower opportunity cost of producing wheat. B) Country B should export wheat because it has a lower opportunity cost of producing wheat. C) Country A should export cloth because it has a lower opportunity cost of producing cloth. D) Country B should export cloth because it has a higher opportunity cost of producing cloth. Show Answer Correct Answer: A) Country A should export wheat because it has a lower opportunity cost of producing wheat. 14. Those who stand to gain from trade A) Do not really care about the issue of income redistribution. B) Could not compensate losers since there are so many poor people. C) Could compensate losers but would rather not in modern industrial economies. D) Compensate losers at least partially through such legislation as unemployment compensation. Show Answer Correct Answer: D) Compensate losers at least partially through such legislation as unemployment compensation. 15. What are the types of risk that are unique to a country like Syria, North Korea or Egypt. A) Sovereign RiskThere are two instances where sovereign risk can happen. First, the importer's country may suddenly be at war and thus prohibits any outflow of currency from their country. Second. there are possibilities that the government of the buyer's country imposing exchange control regulation because of political reason. B) Political RiskAs a result of political changes or instability in a country. Instability could stem from a change in government, legislative bodies, other foreign policy makers or military control. C) Media RiskIt is important to be aware of the types of media available and the kind of media your target market uses to gain information about products and services they wish to buy. D) 1&3 only. E) 1 & 2 only. Show Answer Correct Answer: E) 1 & 2 only. 16. It refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions. A) Noblesse oblige. B) Social responsibility. C) Ethical dilemmas. D) None of above. Show Answer Correct Answer: B) Social responsibility. 17. ..... is the relative strength that one needs to win in a competition. A) Power. B) Competitiveness. C) Advantage. D) None of above. Show Answer Correct Answer: B) Competitiveness. 18. Which factor of production plays a role in the Comparative Advantage model? A) Capital. B) Labour. C) Land. D) Goods. Show Answer Correct Answer: B) Labour. 19. How many types of insurance are available in MU? A) 3. B) 6. C) 4. D) 8. Show Answer Correct Answer: D) 8. 20. In recent years, the US has experienced a deficit on its overall current account of the balance of payments. What could have led to an increase in the size of the deficit? A increased competitiveness of goods made in the US B increased earnings by US investors in foreign companies C increased numbers of overseas visitors to the US D increased spending on US military bases abroad A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. ← 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