This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 142 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 142 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An agreement to eliminate trade barriers between Canada, Mexico, and USA. A) WTO. B) MFN. C) USDA. D) NAFTA. Show Answer Correct Answer: D) NAFTA. 2. ..... is a unique identification code for both financial and non-financial institutions. A) International Organization for Standardization (ISO). B) International Commercial Terms (Incoterms). C) International Chamber of Commerce (ICC). D) Business Identifier Code (BIC). Show Answer Correct Answer: D) Business Identifier Code (BIC). 3. What does INCOTERM stand for? A) International Container Termination. B) International Communication Terms. C) International Commercial Termination. D) International Commercial Terms. Show Answer Correct Answer: D) International Commercial Terms. 4. Which of the following is one of the four attributes present in Porter's diamond? A) Economies of Scale. B) Factor Endowments. C) Structural Innovation. D) Procedural innovation. Show Answer Correct Answer: B) Factor Endowments. 5. Which is NOT a step in the importing process? A) Create and finalize a purchase agreement. B) Receive goods. C) Confirm the purchase. D) Assess demand. Show Answer Correct Answer: D) Assess demand. 6. In order to become more efficient and to make greater profits, both individuals and nations learn to A) Compete. B) Cheat. C) Produce more resources. D) Specialize. Show Answer Correct Answer: A) Compete. 7. Which of the following is a disadvantage of having quotas? A) Black-market may occur. B) Fall in income. C) Unemployment. D) Fall in efficiency. Show Answer Correct Answer: A) Black-market may occur. 8. What are services in the context of trade? A) Manufactured items or agricultural commodities. B) Intangible goods such as advertising and telecommunication. C) Goods sourced, assembled, packaged, and sold in different parts of the world. D) Products that can be produced efficiently by a country. Show Answer Correct Answer: B) Intangible goods such as advertising and telecommunication. 9. Canada exports syrup to the US, while imports computers from the US. Syrup-biased growth in Canada will ..... A) Improve the terms of trade of Canada. B) Worsen the national income of the US. C) Better off. D) Improve the national welfare of the US. Show Answer Correct Answer: D) Improve the national welfare of the US. 10. Which one is an alliance? A) NATO. B) OPEC. C) EU. D) NAFTA. Show Answer Correct Answer: A) NATO. 11. A disadvantage of specialisation:Domestic industries may be forced to shut down because foreign firms are better at producing the goods or services provided by that industry. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 12. He says "when goods cannot cross borders, armies will." A) Frederic Bastiat. B) Evenett & Fritz. C) Chris Horseman. D) Robert Voltman. Show Answer Correct Answer: A) Frederic Bastiat. 13. Which of the following was developed with the rationale that the U.S.-Canadian trade was the largest bilateral trade in the world and that the United States is Mexico's and Canada's largest trading partner? A) CEFTA (the Central European Free Trade Agreement). B) NAFTA (the North American Free Trade Agreement). C) ASEAN (Association of South East Asian Nations). D) EU (the European Union). Show Answer Correct Answer: B) NAFTA (the North American Free Trade Agreement). 14. Which of the following country is not in the Andean Community of trade bloc A) Bolivia. B) Colombia. C) Peru. D) Greece. Show Answer Correct Answer: D) Greece. 15. Misha traveled to India and took $ 200 in U.S. currency. When Misha exchanged the $ 200 in India, she received about (1USD=40.3950 Indian Rupee) A) 2, 480 Indian rupees. B) 4, 040 Indian rupees. C) 4, 960 Indian rupees. D) 8, 079 Indian rupees. Show Answer Correct Answer: D) 8, 079 Indian rupees. 16. Jewelry from Brazil is sold in stores in Utah. A) Import. B) Export. Show Answer Correct Answer: A) Import. 17. Government policy to encourage exports so that products have a competitive edge is ..... A) Provides convenience to producers of export goods. B) Maintaining the stability of the rupiah exchange rate. C) Make international trade agreements. D) Increase promotion. Show Answer Correct Answer: A) Provides convenience to producers of export goods. 18. An exporter may have to spend months learning about a country's trade regulations, business practices, and more before a deal can be closed. A) True. B) False. Show Answer Correct Answer: A) True. 19. The dollar is worth less ..... A) Appreciate. B) Depreciate. Show Answer Correct Answer: B) Depreciate. 20. Which of these are a positive impact on multinational companies? A) Increases competition. B) Difficult to communicate. C) Well known around the world. D) Low morale in home workers. Show Answer Correct Answer: C) Well known around the world. ← 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