This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 145 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 145 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Is the exchange of goods and services between and among countries. A) International Trade. B) International Relation. C) International Globalization. D) Balance of Trade. Show Answer Correct Answer: A) International Trade. 2. Organizational Culture is..... A) Not Dynamic. B) Easy for others to imitate. C) Unique. D) Not unique. Show Answer Correct Answer: C) Unique. 3. An increase in Mexico's demand for United States goods would cause the value of the dollar to do which of the following? A) Appreciate because the price level in the United States would increase. B) Appreciate because Mexico would be purchasing more United States dollars. C) Depreciate because the United States would be buying more Mexican pesos. D) Appreciate because Mexico would be selling more United States dollars. Show Answer Correct Answer: B) Appreciate because Mexico would be purchasing more United States dollars. 4. The loanable funds market is best described as bringing together A) Savers and borrowers. B) Investors and borrowers. C) Financial institutions and investors. D) Savers and lenders. E) Banks and savers. Show Answer Correct Answer: A) Savers and borrowers. 5. Which one of the following is not an aim of Regional Trade Block. A) Diffusion of Culture. B) Encourage trade between neighbouring countries. C) Curb restrictions. D) Encourage free trade between member countries. Show Answer Correct Answer: A) Diffusion of Culture. 6. Which country had FTA with Vietnam before CPTPP? A) Canada. B) Mexico. C) Chile. D) Peru. Show Answer Correct Answer: C) Chile. 7. What is the infant industries argument for government intervention in international trade? A) To prevent unemployment. B) To protect infant industries. C) To promote industrialization. D) To maintain essential industries. Show Answer Correct Answer: B) To protect infant industries. 8. Suppose the EU removes ALL tariffs, embargoes, subsidies, and quotes. What is MOST LIKELY to happen to the international value of the Euro? A) Depreciate, because Americans will want more European goods. B) No change because trade barriers do not affect exchange rates. C) Depreciate, because Europeans will buy more goods from other countries. D) Appreciate, because Europeans will buy more goods from other countries. Show Answer Correct Answer: B) No change because trade barriers do not affect exchange rates. 9. What is absolute advantage of trade? A) Two countries produce distinctively different goods. B) Two countries produce comparable goods. C) A poorer country is more efficient at producing something than a rich country. D) One country produces more of everything than another country. Show Answer Correct Answer: D) One country produces more of everything than another country. 10. Which following is true? A) Vietnam is a trade deficit. B) Vietnam is a trade surplus country. Show Answer Correct Answer: A) Vietnam is a trade deficit. 11. The annual difference between a country's exports and imports is called what? A) Net Exports. B) High Exports. C) Low Exports. D) None of above. Show Answer Correct Answer: A) Net Exports. 12. When a nation imports more than they export, that nation has a A) Free trade agreement. B) Trade surplus. C) Trade fails. D) Trade free economic system. Show Answer Correct Answer: C) Trade fails. 13. What is the ability to produce a good by using fewer resources than any other country? A) International trade. B) Comparative advantage. C) Absolute advantage. D) Tariffs. Show Answer Correct Answer: C) Absolute advantage. 14. Which of the following would reduce a country's Economic Freedom of the World rating? A) Free trade and low taxes. B) High tariffs and trade restrictions. C) A legal system that secures private property rights and provides even-handed enforcement of contracts. D) Competitive markets and minimal government regulation. Show Answer Correct Answer: B) High tariffs and trade restrictions. 15. When we spend more foreign currency than we receive, then we get a foreign currency deficit. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. International trade is ..... A) Trade carried out in a city by buying and selling goods originating from abroad. B) Trade carried out by two countries in the same area that is mutually beneficial. C) Trade carried out by two countries that have different interests in order to increase consumption. D) Trade carried out by two or more countries to exchange goods with the aim of mutual benefit . Show Answer Correct Answer: C) Trade carried out by two countries that have different interests in order to increase consumption. 17. Positive impacts of multinational companies include: A) Pollution. B) Increased job opportunities. C) Exploitation of workers. D) Destruction of the environment. Show Answer Correct Answer: B) Increased job opportunities. 18. The only value that politics and economics share is A) A. security. B) Justice. C) Efficiency. D) Equity. Show Answer Correct Answer: A) A. security. 19. The World Trade Organization (WTO) does not A) Monitor national trade policies. B) Help member countries with technology and training in relation to trade. C) Administer trade agreements. D) Monitor the quality of goods traded across borders. Show Answer Correct Answer: D) Monitor the quality of goods traded across borders. 20. How does this agreement negatively affect the U.S. economy? Use the information below to answer the question. Under the North American Free Trade Agreement (NAFTA), the last restrictions on U.S.-Mexican agricultural trade were removed in 2008. Between 2007 and 2008, the value of agricultural exports to Mexico increased by 23%, and the value of imports from Mexico increased by 26% for the main commodities that had been subject to those restrictions. A) U.S. consumers will pay higher prices for Mexican products. B) U.S. farmers will experience more competition. C) U.S. agricultural production will become less efficient. D) U.S. foreign relations with Mexico will suffer. Show Answer Correct Answer: B) U.S. farmers will experience more competition. ← 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