This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 146 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 146 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The foreign company is able to exercise full control over its operations in foreign countries. What is it? A) Contract manufacturing. B) Joint venture. C) Wholly owned subsidiary. D) Import. Show Answer Correct Answer: C) Wholly owned subsidiary. 2. What are the disadvantages of trade? A) Lower input prices. B) Wider markets for businesses. C) More choice for consumers. D) Unemployment. Show Answer Correct Answer: D) Unemployment. 3. Which one of the following is a main feature of the Single European Market A) Establishment of quotas for the movement of goods between member countries. B) Removal of common external tariffs on imports from non-member countries. C) Adoption of a common currency between member states. D) The free movement of capital and labour between member countries. Show Answer Correct Answer: D) The free movement of capital and labour between member countries. 4. Assisting developing countries in trade policy issues, through technical assistance and training programme A) WTO. B) UNCTAD. C) EU. D) APEC. Show Answer Correct Answer: A) WTO. 5. INTERNAL TRADE MEANS A) Trade within the boundaries of a country. B) Trade between two countries. C) Trade with a foreigner. D) Trade at global level. Show Answer Correct Answer: A) Trade within the boundaries of a country. 6. A short term consequence of a more developed country investing in a less developed country includes the introduction of A) Advanced technological and technical processes. B) Reduced competition. C) Lower average wage rates. D) Greater unemployment. Show Answer Correct Answer: A) Advanced technological and technical processes. 7. Ports which are situated away from the sea coast are ..... A) Inland ports. B) Out Ports. C) Entrepot Ports. D) Ports of call. Show Answer Correct Answer: A) Inland ports. 8. According to David Ricardo, if a country produces cloth efficiently but with a high opportunity cost it should A) Reduce its opportunity costs for making cloth. B) Produce much more cloth. C) Trade for cloth made with a lower opportunity cost. D) Trade for materials other than cloth. Show Answer Correct Answer: C) Trade for cloth made with a lower opportunity cost. 9. What is the main benefit of international trade for domestic companies that export goods? A) Access to a larger market and economies of scale. B) Lower production costs and higher profits. C) Protection from foreign competition. D) Increased government subsidies. Show Answer Correct Answer: A) Access to a larger market and economies of scale. 10. Imports are goods and services that one country sells to other countries. A) True. B) False. Show Answer Correct Answer: B) False. 11. What do you call the taxes or duties paid for particular class imports or export? A) TRADE BARRIER. B) TARIFFS. C) MERCANTILISM. D) None of above. Show Answer Correct Answer: B) TARIFFS. 12. How many main risks in international trade? A) 1. B) 2. C) 3. D) 4. E) 4. Show Answer Correct Answer: C) 3. 13. According to Heckscher-Ohlin theorem, the quality of ..... of a country are its factor endowment. A) Imports and exports. B) Deficits and surpluses. C) Labour, land and natural resources. D) Money. Show Answer Correct Answer: C) Labour, land and natural resources. 14. How does the Fed seek to prevent inflation? A) Lower the the required reserve ratio, Lower the discount rate, Buy Bonds. B) Raise the required reserve ratio, raise the discount rate, Sell Bonds. Show Answer Correct Answer: B) Raise the required reserve ratio, raise the discount rate, Sell Bonds. 15. Trading one thing for another A) Exchange. B) Canadian Dollar. C) Weight. D) Exchange rate. E) Currency. Show Answer Correct Answer: A) Exchange. 16. Negative balance of trade where a countries imports exceed its exports A) Trade Failure. B) Trade Dependency. C) Exports. D) Imports. Show Answer Correct Answer: A) Trade Failure. 17. What is the definition of e-commerce? A) The buying and selling of goods and services over an electronic network. B) The buying and selling of goods and services in physical stores. C) The exchange of goods and services between countries. D) The transmission of funds or data through postal mail. Show Answer Correct Answer: A) The buying and selling of goods and services over an electronic network. 18. Which of the following is NOT the tools of protectionism? A) Import license. B) Tariff. C) Opportunity cost. D) Forex control. Show Answer Correct Answer: C) Opportunity cost. 19. Which of the following is not included in an International Commercial invoice? A) Item. B) Quantity. C) Price for the products or services. D) Delivery and payment conditions. E) Instruction booklet. Show Answer Correct Answer: E) Instruction booklet. 20. The Philippines' top exports are semiconductors and electronic components. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. ← 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