This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 161 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 161 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The trade deficit is an economic condition in which a nation imports more than it exports. A) True. B) False. Show Answer Correct Answer: A) True. 2. Trade agreement between two nations A) International trade agreements. B) Regional Trade Agreement. C) Multilateral trade agreements. D) Bilateral trade agreement. Show Answer Correct Answer: D) Bilateral trade agreement. 3. If free trade will benefit all nations in the long run, why do nations so often establish barriers, like tariffs, to make free trade impossible? A) Treaties forbid free trade. B) International organizations, like the World Trade Organization (WTO), forbid free trade. C) Nations often seek to protect their firms and their workers from competition. D) Nations fear that other nations will become too rich if they can trade freely. Show Answer Correct Answer: A) Treaties forbid free trade. 4. ..... are given by government to ensure its products produced in their country would cost less and are more competitive than those from other countries. A) Quota. B) Standards. C) Exchange control. D) Subsidies. Show Answer Correct Answer: D) Subsidies. 5. For the ..... advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally. A) Ownership. B) Location. C) Home country. D) Internalization. Show Answer Correct Answer: B) Location. 6. ..... involves investments offunds abroad in exchange for financialreturn. A) Foreign investments. B) Contract manufacturing. C) Licensing. D) Manufacturing. Show Answer Correct Answer: A) Foreign investments. 7. Which of the following is one way that a few firms can gain some control over their market? A) Secretly cooperate with one another. B) Bribe government officials to have prices set by law. C) Threaten to stop producing. D) Use advertising to increase demand. Show Answer Correct Answer: A) Secretly cooperate with one another. 8. What would not be included in the current account of the balance of payments? A dividends earned from a firm in another country B imports of TVs from another country C purchase of a house in another country D rents paid to owners of land in another country A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 9. Trade is a manifestation of economic activity since it involves these activities except A) Supply and demand between nations in international market. B) Competitions between firms for bigger control in market. C) Regulation to protect local market from product invasions. D) Labour and capital mobility across border. Show Answer Correct Answer: C) Regulation to protect local market from product invasions. 10. Headquarter of ASEAN is ..... A) Minsk, Belarus. B) Jakarta, Indonesia. C) Kathmandu, Nepal. D) Vienna, Austria. Show Answer Correct Answer: B) Jakarta, Indonesia. 11. Items transported into a country from a foreign country A) Imports. B) International Trade. C) North American Free Trade Agreement. D) Surplus. Show Answer Correct Answer: A) Imports. 12. Roughly how many species does CITES protect total? A) 34, 000. B) 1, 000. C) 36, 000. D) 24, 000. Show Answer Correct Answer: C) 36, 000. 13. True or False:Factor endowments are not static and can change over time. A) True. B) False. Show Answer Correct Answer: A) True. 14. Corporations such as Ford Motor Company, Shell Oil Company, and British Petroleum, which produce and sell products in different countries, are called A) Multinational. B) Mega companies. C) Industries. D) Globals. Show Answer Correct Answer: A) Multinational. 15. Mercantilism is an economic philosophy advocating that countries should simultaneously encourage imports and discourage exports. A) True. B) False. Show Answer Correct Answer: B) False. 16. Product differentiation in economics is known as ..... A) Process of setting up the price. B) Process to make the product unique. C) Process of distinguishing a product or service from others. D) None of above. Show Answer Correct Answer: C) Process of distinguishing a product or service from others. 17. With international trade, it is best for a country to have a A) The trade fails. B) Trade surplus. C) A displacement of workers. D) None of the above. Show Answer Correct Answer: B) Trade surplus. 18. International trade will bring more unemployment issues due to the local producers close their operation because not being abble to compete with the imported goods. A) ALWAYS TRUE. B) ALWAYS FALSE. C) MIGHT BE NOT. D) None of above. Show Answer Correct Answer: C) MIGHT BE NOT. 19. What does import mean? A) Buying goods from another business. B) Selling goods to another country. C) Buying goods from another country. D) Selling goods to another business. Show Answer Correct Answer: C) Buying goods from another country. 20. Australia's top export category is: A) Services. B) Mineral fuels. C) Manufacturing. D) Agriculture. Show Answer Correct Answer: B) Mineral fuels. ← 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