This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 150 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 150 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The type of new product development is..... A) New products that are similar to old products. B) New products that add to existing product lines. C) Expanding new product lines. D) Many products have been added. Show Answer Correct Answer: B) New products that add to existing product lines. 2. The bank issuing an L/C takes primary responsibility for A) Transportation risk. B) Documentary risk. C) Delivery of exported goods. D) Payment on behalf of the applicant. Show Answer Correct Answer: D) Payment on behalf of the applicant. 3. How many Appendices are included in CITES? A) 5. B) 4. C) 2. D) None of the above. Show Answer Correct Answer: D) None of the above. 4. They are situations in which none of the available alternatives seems ethically acceptable. A) Personal ethics. B) Ethical dilemmas. C) Moral obligation. D) None of above. Show Answer Correct Answer: B) Ethical dilemmas. 5. Help importing and exporting businesses conduct their business more efficiently A) World Trade Organization. B) World Bank. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: A) World Trade Organization. 6. When there is not enough of a certian good this is known as? A) Economics. B) Scarcity. C) Services. D) Goods. Show Answer Correct Answer: B) Scarcity. 7. What does the acronym BRICS represent in the context of international business? A) Bilateral Regional Investment Cooperation System. B) Brazilian, Russian, Indian, Chinese, and South African economies. C) Business-Related International Currency System. D) British, Russian, Indonesian, Chinese, and Saudi Arabian trade pact. Show Answer Correct Answer: B) Brazilian, Russian, Indian, Chinese, and South African economies. 8. Over the short term, which of the following is not an advantage to free trade? A) Greater choice of products for consumers and lower prices. B) Higher wages for domestic workers and greater employment. C) Greater competition and more efficiency in production. D) Benefits for producers of economies of scale arising from the ability to sell in other markets. Show Answer Correct Answer: B) Higher wages for domestic workers and greater employment. 9. What is the key to trade? A) Self-Sufficiency. B) Specialization. C) Technology. D) Wealth. Show Answer Correct Answer: B) Specialization. 10. The general purpose of tariffs is: A) Source of income. B) Coercive instrument. C) Protect domestic industry. D) All true. Show Answer Correct Answer: D) All true. 11. When a government allows raw materials and other intermediate products to enter a country duty free, this generally results in a(an) A) Effective tariff rate less than the nominal tariff rate. B) Nominal tariff rate less than the effective tariff rate. C) Rise in both nominal and effective tariff rates. D) Fall in both nominal and effective tariff rates. Show Answer Correct Answer: B) Nominal tariff rate less than the effective tariff rate. 12. This is a tax on imports that is used to increase price of foreign products. A) Tariff. B) Quota. C) Subsidy. D) Embargo. Show Answer Correct Answer: A) Tariff. 13. The first principle that suggest trade as an economic activity is that A) Nation has unlimited wants and desires. B) Nation is not self-sufficient. C) We live in a world of scarcity. D) We determine our own life. Show Answer Correct Answer: C) We live in a world of scarcity. 14. What is the price of one nation's currency in terms of another nation's currency called? A) Fiscal policy. B) Discount rate. C) Exchange rate. D) Monetary policy. Show Answer Correct Answer: C) Exchange rate. 15. The horizontal axis is for book production and the vertical axis is for pizza production. If the Malaysia's' production possibility frontier was flatter to the book axis, whereas Singapore was steeper, we can say: A) Malaysia has a comparative advantage in book production. B) Singapore has a comparative advantage in book production. C) Not enough information is given. D) None of above. Show Answer Correct Answer: A) Malaysia has a comparative advantage in book production. 16. Which of the following is NOT true about the export supply curve? A) It intersects the vertical axis at the foreign equilibrium price in autarky equilibrium. B) It is steeper than the domestic supply curve in the exporting country. C) It is flatter than the domestic supply curve in the exporting country. D) It describes the excess of foreign supply over foreign demand. Show Answer Correct Answer: B) It is steeper than the domestic supply curve in the exporting country. 17. Which of these answers is correct to admit that the international trade bringing change to nation states? A) Mercantilism. B) Liberalism. C) Marxism. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. Examples of ownership advantage include which of the following? A) Prestige. B) Liability. C) Intellectual property. D) Benefits of outsourcing. Show Answer Correct Answer: C) Intellectual property. 19. Who has the power to create tariffs? A) State governments. B) Federal government. C) Store owners. D) Factory owners. Show Answer Correct Answer: B) Federal government. 20. It is estimated that in 2016 the Olympic Games in Rio, Brazil attracted over 600 000 foreign visitors.What is likely to have been the result of this number of visitors? A) A depreciation of Brazil's currency. B) A fall in Brazil's rate of inflation. C) An increase in the Brazilian government's budget deficit. D) A reduction in Brazil's deficit on the current account of its balance of payments. Show Answer Correct Answer: D) A reduction in Brazil's deficit on the current account of its balance of payments. ← 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