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International Trade Quiz 17 (20 MCQs)

Quiz Instructions

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1. The U.S. economy has thrived on international trade throughout its history.
2. Quotas (Limits to imports)
3. Resources available = 200 units for each country Production in GhanaCocoa = 10 tonsRice = 5 tons Production in South KoreaCocoa = 2.5 tonsRice = 10 tons Question:Which country should specialize in producing Rice?
4. Absolute advantage exists when one nation is the most efficient producer of a good, meaning it can produce the good at the lowest possible price.
5. If policy makers enact a quota on a product in a country open to trade, they will see
6. Content list
7. Who is the US's biggest trading partner in terms of BOTH imports and exports?
8. ..... stresses on the 'relative cost difference' rather than 'absolute cost difference' between the goods as the basis for carrying out trade.
9. Retail trade is the example of the type of internal trade on the basis of
10. Countertrade is most attractive to large, diverse multinational enterprises that can use their worldwide network of contacts to dispose of goods acquired in countertrading.
11. Benefits of international trade include the following except .....
12. What best describes a country's terms of trade? A the difference between the volume of its exports and its imports B the average price of its exports divided by the average price of its imports C the total value of its exports divided by the total value of its imports D the volume of its exports divided by the volume of its imports
13. Methods of protectionismA type of quota put in place by exporters. Often created because exporting countries would rather impose their own restrictions rather than risking worse terms
14. Contractual safeguards can be written into an alliance agreement to guard against the risk of opportunism by a partner.
15. A tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services
16. An advantage of a nation having a merchandise deficit is that this deficit allows
17. Before a supplier sends merchandise to a buyer, the supplier provides this document listing the quantity, value and specifications of the merchandise.
18. At the industry's long-run equilibrium, companies in monopolistic competition will earn ..... economic profit.
19. Which one gives additional revenue to the government?
20. A numerical limit placed on goods being imported
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