This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 160 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 160 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the main difference between a trade surplus and a trade deficit? A) The main difference is that a trade surplus occurs when a country exports more than it imports, while a trade deficit occurs when a country imports more than it exports. B) A trade surplus occurs when a country exports and imports the same amount, while a trade deficit occurs when a country has no imports. C) There is no difference between a trade surplus and a trade deficit. D) A trade surplus occurs when a country imports more than it exports, while a trade deficit occurs when a country exports more than it imports. Show Answer Correct Answer: A) The main difference is that a trade surplus occurs when a country exports more than it imports, while a trade deficit occurs when a country imports more than it exports. 2. It means by which trade between countries is restricted in some way-normally through measures to reduce the number of imports coming into a country. A) Quotas. B) Tariff. C) Protectionism. D) Rhetoric. Show Answer Correct Answer: C) Protectionism. 3. Tariffs are ..... A) Discounts. B) Limits. C) Financial supports. D) Taxes. Show Answer Correct Answer: D) Taxes. 4. ..... investing by setting up operations or buy assets in businesses in another country A) FDI (Foreign Direct Investment). B) FII (Foreign Institutional Investment). C) FOI (Foreign Overseas Investment). D) FUI(foreign Unit Investment). Show Answer Correct Answer: A) FDI (Foreign Direct Investment). 5. Business broadly refers to transactions ranging in complexity from the exchange of baseball cards between collectors to multinational policies setting protocols for imports andexports between countries. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 6. This approach is often summarized by the maxim "when in Rome do as Romans do" A) Naive immoralist. B) Righteous moralist. C) Cultural relativism. D) None of above. Show Answer Correct Answer: C) Cultural relativism. 7. These ports which originally developed as points on main sea routes where ships used to anchor for refuelling, watering and taking food items. A) Inland ports. B) Out Ports. C) Entrepot Ports. D) Ports of call. Show Answer Correct Answer: D) Ports of call. 8. When the government places a tax on an imported good to protect a domestic good. A) Protective tariff. B) Subsidy. C) Comparative Advantage. D) Quota. Show Answer Correct Answer: A) Protective tariff. 9. What is the primary benefit of international trade for a country's economy? A) International trade leads to decreased efficiency and economic decline. B) International trade has no impact on a country's economy. C) International trade only benefits other countries and not the country engaging in trade. D) International trade allows countries to specialize in the production of goods and services where they have a comparative advantage, leading to increased efficiency and economic growth. Show Answer Correct Answer: D) International trade allows countries to specialize in the production of goods and services where they have a comparative advantage, leading to increased efficiency and economic growth. 10. What is invisible trade? A) Trading in goods. B) Trading in commodities. C) Trading in service. D) None of these. Show Answer Correct Answer: C) Trading in service. 11. How does international trade contribute to the exchange of cultural ideas and diversity? A) International trade has no impact on cultural exchange and diversity. B) International trade promotes cultural exchange and diversity by facilitating the sharing of goods, services, and ideas between different cultures and countries. C) International trade is solely focused on economic benefits and has no relation to cultural exchange and diversity. D) International trade only promotes cultural exchange and diversity through the exchange of traditional artifacts and artworks. Show Answer Correct Answer: B) International trade promotes cultural exchange and diversity by facilitating the sharing of goods, services, and ideas between different cultures and countries. 12. Travel abroad is cheaper for American tourists. A) Depreciation. B) Appreciation. Show Answer Correct Answer: B) Appreciation. 13. Exchange rates among the currencies of the world change ..... A) Constantly. B) Rarely. C) Annually. D) Slowly. Show Answer Correct Answer: A) Constantly. 14. The following is an activity that causes a foreign exchange of a country to increase ..... A) Provide foreign loans. B) Exporting goods abroad. C) The government sells foreign currency in order to stabilize the exchange rate. D) Selling goods domestically. Show Answer Correct Answer: B) Exporting goods abroad. 15. French people on holiday in Ireland are an example of A) Visible import. B) Invisible import. C) Visible export. D) Invisible export. Show Answer Correct Answer: D) Invisible export. 16. Which is NOT one of the reasons international trading is important? A) Expand United States affairs. B) Unrestricted flow of goods. C) Cheaper availability. D) Easier trading practices. Show Answer Correct Answer: A) Expand United States affairs. 17. Who controls the UN? A) China. B) England. C) USA. D) Russia. Show Answer Correct Answer: C) USA. 18. Why do dome countries try to limit imports? A) Balance of trade get improved. B) Negative balance of trade. C) Traders are not available. D) Price of goods from foreign countries are lower. Show Answer Correct Answer: B) Negative balance of trade. 19. Which of the following is NOT a feature of free trade? A) Protectionism. B) Trade specialization. C) Increase in world output. D) Comparative cost advantage. Show Answer Correct Answer: A) Protectionism. 20. Which is NOT a type of settlement in international trade? A) Counter Trade. B) Consignment Method. C) Payment in Advance. D) Open Account. E) Cash on Delivery. Show Answer Correct Answer: E) Cash on Delivery. ← 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