This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statement is true about Comparative Advantage theory? A) The most efficient country is the one that can produce goods at the lowest opportunity cost. B) A country should import goods that it is most efficient in production. C) Countries should not trade with each other and produce all goods independently. D) It does not support free trade among nation. Show Answer Correct Answer: A) The most efficient country is the one that can produce goods at the lowest opportunity cost. 2. An advantage of specialisation:Global output is increased and living standards are raised. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 3. India IS the world's fastest-growing large economy A) True. B) False. Show Answer Correct Answer: B) False. 4. Companies can hire workers from other countries easily A) Pro. B) Con. Show Answer Correct Answer: B) Con. 5. A "clean" bill of lading shows that the goods have been received by the buyer in good condition. A) True. B) False. Show Answer Correct Answer: B) False. 6. What is the term used when a nation exports more than it imports? A) Trade surplus. B) Unfavorable balance of trade. C) Trade fails. D) Favorable balance of trade. Show Answer Correct Answer: D) Favorable balance of trade. 7. Which of the following is a region of the world that is a significant trade region due to its oil exports? A) EU. B) USA. C) Middle East. D) China. E) Japan. Show Answer Correct Answer: C) Middle East. 8. An argument against trade protection is that it will increase A competition for domestic industries. B domestic price levels. C the current account deficit. D opportunities for domestic infant industries. A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 9. The specialty of entrepreneurial production factors lies in ..... A) Strength and intelligence. B) Durability and tenacity. C) Creativity and innovation. D) Work hard and don't give up. Show Answer Correct Answer: C) Creativity and innovation. 10. "It's been 10 long years since NAFTA was implemented, and the result has been the bleeding of jobs, " [Congressman Ted] Strickland said ..... In my judgment, we have a trade policy that does not protect American jobs or American companies ..... And the beneficiaries ..... are the multinational corporations [whose] only concern is how to increase the bottom line ..... " "These companies have gone down there and built modern factories, " Strickland said. "They pay pathetic wages ..... and within sight of those factories, people who work in those factories [are] living in the most pathetic squalor ..... The jobs going to Mexico haven't really benefited the Mexican workers ..... " (Source:Adapted from Jeff Hibbs, "Strickland, Democrats take aim on NAFTA, " Wilmington News Journal, November 14, 2003.) According to the passage, Congressman Strickland believes that NAFTA has affected American workers in what way? A) NAFTA created jobs for them in Mexico. B) NAFTA cost them their jobs. C) NAFTA created higher wage jobs for them in the United States. D) NAFTA caused their wages to decline. Show Answer Correct Answer: B) NAFTA cost them their jobs. 11. Who is the winner of tariff policy? A) The society. B) The local producers. Show Answer Correct Answer: B) The local producers. 12. To make Malaysia the preferred investment destination and among the most globally competitive trading nations by 2020. This vision is referring to: A) TREES. B) MATRADE. C) WHAT. D) MPC. Show Answer Correct Answer: A) TREES. 13. 4/ What are external economies of scale in the context of international trade? A) A. Cost savings achieved by individual firms. B) B. Cost savings that benefit an entire industry. C) C. The cost of exporting goods. D) Tariffs imposed on imported goods. Show Answer Correct Answer: B) B. Cost savings that benefit an entire industry. 14. What does WIPO refer to? A) WIPO Agreement. B) WIPO Protocol. C) WIPO System. D) World Intellectual Property Organization. Show Answer Correct Answer: D) World Intellectual Property Organization. 15. An advantage of specialisation:Costs are reduced, which can be passed on to consumers in the form of lower prices A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 16. MNC means Multi-National Corporations. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. What is the marketing mix in international business? A) Product, Price, Place, Profit. B) Product, Profit, Place, Promotion. C) Product, Price, Place, Promotion. D) Product, Price, Profit, Promotion. Show Answer Correct Answer: C) Product, Price, Place, Promotion. 18. Study the information below and use it to answer the question that follows. YEAR. VALUE OF 1 EURO PER $ 1 VALUE OF $ 1 PER EURO2016 1.25 0.792017 1.42 0.70 Which currency appreciated in value between 2016 to 2017? A) The euro. B) The dollar. C) Both. D) None of above. Show Answer Correct Answer: A) The euro. 19. Which of the following accurately defines quota? A) A special tax placed on foreign goods sold in the U.S. B) A method used to stop the shipment of certain products to or from particular countries. C) A packing and shipping regulation for hazardous products. D) A fixed limit on the amount of import or export of a product. Show Answer Correct Answer: D) A fixed limit on the amount of import or export of a product. 20. Which one of the following is a benefit of a country adopting protectionist policies A) To protect infant industries. B) To encourage dumping. C) To encourage unethical practices. D) To increase a balance of payments deficit on the current account. Show Answer Correct Answer: A) To protect infant industries. ← 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