This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 148 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 148 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which term refers to the act of selling products or services to customers in foreign countries? A) Importing. B) Offshoring. C) Exporting. D) Insourcing. Show Answer Correct Answer: C) Exporting. 2. Goods imported for export are known as A) IMPORT. B) EXPORT. C) ENTREPOT. D) RE-EXPORT. Show Answer Correct Answer: C) ENTREPOT. 3. If nations limit trading of clothing who will benefit? A) Domestic Consumers of clothing. B) Domestic producers of clothing. C) Foreign Producers of clothing. D) Department stores who sell clothing. Show Answer Correct Answer: B) Domestic producers of clothing. 4. Which of the following is not true of an International Purchase Order? A) It is based on the buyer's Purchase Order. B) It is preceded by an exchange of information. C) It may constitute a binding offer. D) It is used exclusively between large commercial buyers. Show Answer Correct Answer: D) It is used exclusively between large commercial buyers. 5. ..... unemployment is when workers are jobless and looking for work. A) Residual. B) Frictional. C) Structural. D) Cyclical. Show Answer Correct Answer: B) Frictional. 6. Who is also benefit of International trade? A) Trader. B) Employers. C) Merchants. D) Workers. Show Answer Correct Answer: D) Workers. 7. What is Mexico's biggest international market? A) China. B) Germany. C) United States. D) England. Show Answer Correct Answer: C) United States. 8. The benefits that a person or a company obtain from the production and investment with their products constitutes the A) Sales. B) Trade. C) Quotas. D) Incomes. Show Answer Correct Answer: D) Incomes. 9. What is the ideal situation for a country's exports and imports? A) Exports exceed imports. B) Imports exceed exports. C) Exports and imports are equal. D) Exports and imports are irrelevant. Show Answer Correct Answer: C) Exports and imports are equal. 10. What does FDI stands for. A) Foreign Desire Investment. B) Forever Different Investment. C) Foreign Direct Investment. D) Foreign Direct Interest. Show Answer Correct Answer: C) Foreign Direct Investment. 11. In a command economy, the basic economic questions are answered by: A) Individuals and sellers. B) The traditional methods. C) Central planners. D) None of these. Show Answer Correct Answer: C) Central planners. 12. Technological innovations in transportation and in communications has made it easier to move goods, information, and money around the world. A) True. B) False. Show Answer Correct Answer: A) True. 13. What are some examples of trade barriers that countries may use? A) Tariffs, quotas, and non-tariff barriers. B) Subsidies, embargoes, and sanctions. C) Free trade agreements, currency devaluation, and import licenses. D) Foreign aid, exchange rates, and economic integration. Show Answer Correct Answer: A) Tariffs, quotas, and non-tariff barriers. 14. A Korean company supplies fabrics for a Vietnamese clothes company and requests the Vietnamese company to produce the finished products. The Korean company then pays the Vietnamese company for producing the final products. This transaction is considered as ..... A) Switch trade. B) Export. C) Re-export. D) International processing. Show Answer Correct Answer: D) International processing. 15. The process used to describe the growing interdependence or connection of the world's economies, cultures, and population A) Trade. B) Globalization. C) Expansion. D) Economics. Show Answer Correct Answer: B) Globalization. 16. What are tariffs in international trade? A) Subsidies on exported goods. B) Taxes on imported goods. C) Trade agreements between countries. D) Barriers to e-commerce businesses. Show Answer Correct Answer: B) Taxes on imported goods. 17. What is the effect of a tariff on Consumer Surplus? A) Increase. B) Decrease. C) None. D) Disappears. Show Answer Correct Answer: B) Decrease. 18. ..... is a direct restriction on the quantity of some good that may be imported into a country. A) Import tariff. B) Import subsidy. C) Import quota. D) To the value of the tariff. Show Answer Correct Answer: C) Import quota. 19. Which of the following is a characteristic of capitalism? A) Equality of income. B) Government decision-making is preferred to decentralized decision-making. C) Market determination of prices and quantity. D) Government ownership of all capital. Show Answer Correct Answer: C) Market determination of prices and quantity. 20. Factor endowment theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand. 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