This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 156 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 156 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is a Surplus? A) Break even amount t the end. B) Less money left at the end (a loss). C) More money left at the end (profit). D) None of above. Show Answer Correct Answer: C) More money left at the end (profit). 2. The adverse balance of trade occurs when A) The value of exports exceeds the value of imports. B) The value of imports exceeds the value of exports. C) The value of imports and exports are equal. D) Taxes are imposed on imported goods. Show Answer Correct Answer: B) The value of imports exceeds the value of exports. 3. Which of the following increased free trade among Canada, the United States, and Mexico in the 1990s? A) The Smoot-Hawley Tariff. B) The World Trade Organization. C) The General Agreement on the Tariffs and Trade. D) North American Free Trade Agreement. Show Answer Correct Answer: D) North American Free Trade Agreement. 4. What type of jobs were affected by NAFTA in the US, and were lost in massive numbers? A) Manufacturing. B) Service. C) Tech. D) Jobs that required a college degree. Show Answer Correct Answer: A) Manufacturing. 5. The General Agreement on Tariffs and Trade (GATT) A) Was dissolved as the WTO was created. B) Was incorporated as a part of legal basis of the WTO. C) Exists in parallel with WTO. D) Changed it name into GATS. Show Answer Correct Answer: B) Was incorporated as a part of legal basis of the WTO. 6. Foreign Direct Investments are investments by foreign firms in establishing or acquiring business to another country. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. Trade agreements entered into by WTO member countries within a region (RTAs) must be notified to: A) Committee on Trade in Facilitation. B) Committee on RTAs. C) Committee on Trade in Goods. D) All wrong. Show Answer Correct Answer: C) Committee on Trade in Goods. 8. Answer this question on the basis of the following information about the cost ratios for two products ..... fish (F) and chicken (C) ..... in Singsong and Harmony. Assume that production occurs under conditions of constant costs and these are the only two nations in the world. Singsong:1F = 2CHarmony:1F = 4C In Singsong the domestic real cost of each chicken- A) Is 1/2 a fish. B) Is 2 fish. C) Increases with the level of fish caught. D) Decreases with the level of fish caught. Show Answer Correct Answer: A) Is 1/2 a fish. 9. Newspaper headline: "The U.S. Government limits the amount of sugar imported into the U.S." This is an example of what trade barrier? A) Quota. B) Embargo. C) Standard. D) Tariff. Show Answer Correct Answer: A) Quota. 10. The infamous triangular trade was participated by Europe, Canada, and Africa. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 11. What is a common barrier to international trade? A) Tariffs and import/export quotas. B) Promotion of free trade agreements. C) Cultural exchange and mutual understanding. D) Shared economic interests among nations. Show Answer Correct Answer: A) Tariffs and import/export quotas. 12. What's the best definition for customs? A) Customs are ships that carry merchandise without paying taxes. B) Customs is the authority or organization that controls the flow of goods in and out of a country. C) Customs is the organization that monitors the poverty in a country. D) None of above. Show Answer Correct Answer: B) Customs is the authority or organization that controls the flow of goods in and out of a country. 13. An alliance is a way to bring together contrasting skills and assets that neither company could easily develop on its own. A) True. B) False. Show Answer Correct Answer: B) False. 14. Foreign Exchange Rate measures: A) The value of domestic goods. B) The rate of inflation. C) The rate at which one currency can be exchanged for another. D) The quantity of imported goods. Show Answer Correct Answer: C) The rate at which one currency can be exchanged for another. 15. A country that is able to produce more has the A) Comparative Advantage. B) Trade Surplus. C) The trade failed. D) Absolute Advantage. Show Answer Correct Answer: D) Absolute Advantage. 16. What are exports? A) Goods and services sold to other countries. B) Items bought from other countries. C) The difference between the amount of money that comes into a country and the amount that goes out of it. D) The value of a currency in one country compared with the value in another country. Show Answer Correct Answer: A) Goods and services sold to other countries. 17. Welfare loss in an export subsidy A) Applies to consumers and government. B) Applies to consumers and producers. C) Applies to producers and government. D) Applies only to government. Show Answer Correct Answer: A) Applies to consumers and government. 18. The UAE has a lot of ..... wealth. A) Domestic. B) Export. C) Tonne. D) Competitor. Show Answer Correct Answer: A) Domestic. 19. Before establishing a business in a foreign country, it is not a need to make research, market survey and other product improvement because it involves high cost and risk. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. Which of the following is true of Harmonized System Nomenclature? A) It is a packaging standard used in the transportation industry. B) It is a harmonized tariff system used to regulate the international transportation of goods. C) It is a security system used to secure goods during transport. D) It is an accounting system used to bill customers. Show Answer Correct Answer: B) It is a harmonized tariff system used to regulate the international transportation of goods. ← 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