This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 151 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 151 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In 1974, the U.S. embargoes all products from what company? The embargo was lifted 20 years later in order to re-establish trade relations between the two countries. A) Vietnam. B) Iran. C) South Africa. D) China. Show Answer Correct Answer: A) Vietnam. 2. Countries will export goods and services that they can produce at lower costs. This is called- A) Oligarchy. B) Monopoly. C) Comparative advantage. D) Capitalism. Show Answer Correct Answer: C) Comparative advantage. 3. Which of the following statements is not true about trade protectionism? A) It helps grow infant industries. B) It encourages self-sufficiency. C) It reduces unemployment in the short term. D) It encourages producers to produce goods where they have a comparative advantage. Show Answer Correct Answer: D) It encourages producers to produce goods where they have a comparative advantage. 4. A trading nation's ability to produce something at a lower opportunity cost than that of another trading nation A) Absolute Advantage. B) Comparative Advantage. Show Answer Correct Answer: B) Comparative Advantage. 5. How much is tariff charged due to commitment to eliminate tariffs immediately when CPTPP entries into force? A) 0%. B) 5%. C) 10%. D) Decrease 50% of the recent tariff. Show Answer Correct Answer: A) 0%. 6. ..... provided a series of 'rounds' of negotiations by which tariffs were reduced. A) IMF. B) NAFTA. C) IBRD. D) GATT. Show Answer Correct Answer: D) GATT. 7. What is the primary purpose of the European Union (EU)? A) To promote the military cooperation of European countries. B) To establish a common currency for all member states. C) To promote economic integration and cooperation among European countries. D) To facilitate immigration between member states. Show Answer Correct Answer: C) To promote economic integration and cooperation among European countries. 8. What is "trade deficit" ? A) When a country's imports exceed its exports. B) When a country's exports exceed its imports. C) When a country's imports equal its exports. D) Refering to a positive balance of trade. Show Answer Correct Answer: A) When a country's imports exceed its exports. 9. The full form of WTO is ..... A) World Tariff Organization. B) World Trade Organization. C) Western Trade Organization. D) World Transport Organization. Show Answer Correct Answer: B) World Trade Organization. 10. The Air Waybill is considered "Title to the Goods" A) True. B) False. Show Answer Correct Answer: B) False. 11. What does the term 'small open economy' refer to in the context of Australia? A) Size of economy in terms of natural resources. B) Size of economy in terms of military strength. C) Size of economy in terms of land area. D) Size of economy in terms of population and total production. Show Answer Correct Answer: D) Size of economy in terms of population and total production. 12. A government imposes a limit of 2 million on the number of smartphones imported into the country.Which term is given to this limitation? A) Ban. B) Embargo. C) Quota. D) Tariff. Show Answer Correct Answer: C) Quota. 13. The principal of comparative advantage shows that the benefits of trade rely on: A) Resource costs. B) Opportunity costs. C) Marginal costs. D) Transport costs. Show Answer Correct Answer: B) Opportunity costs. 14. International Product Life Cycle Theory consists of how many stages of evolution? A) Five. B) Six. C) Three. D) FOur. Show Answer Correct Answer: C) Three. 15. What is a trade bloc? A) A group of nations that increase the amount of barriers on all other countries in the world. B) When a country completely isolates itself throught the use of trade barriers. C) A group of countries that reduce trade barriers to create freer trade. D) An agreement to open free trade with anyone but Cuba. Show Answer Correct Answer: C) A group of countries that reduce trade barriers to create freer trade. 16. In most high-income economies, including the United States, goods currently make up ....., while services currently compose ..... A) More than half of total production; less than half of total production. B) Less than half of total production; more than half of total production. C) The merchandise trade balance; the capital trade balance. D) The merchandise trade balance; the retail trade balance. Show Answer Correct Answer: B) Less than half of total production; more than half of total production. 17. What is a potential downside of trade liberalization? A) Limited access to foreign markets. B) Reduced competition among domestic producers. C) Job displacement in certain industries. D) Lower prices for consumers. Show Answer Correct Answer: C) Job displacement in certain industries. 18. The North America Free Trade Agreement was replaced in 2020 by the A) USMCA. B) I didn't see it. C) CAMUS. D) ASEAN. Show Answer Correct Answer: A) USMCA. 19. First person to travel for trade A) Marco Polo. B) Vascodagama. C) Adam Smith. D) None of above. Show Answer Correct Answer: A) Marco Polo. 20. Which of the following is the biggest exporter in the world? A) EU. B) USA. C) Middle East. D) China. E) Japan. Show Answer Correct Answer: D) China. ← 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