This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 174 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 174 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. On June 24, 1497, Cabot spotted land and felt sure he had discovered a very quick route to India. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. USA decided to buy coconut products from the Philippines. This is an example of: A) Import. B) Export. C) Free Trade. D) Purchasing. Show Answer Correct Answer: A) Import. 3. The firm's value creation is measured by the difference between value of product to an average customer and cost of production per unit. A) True. B) False. Show Answer Correct Answer: A) True. 4. The principles in the Multilateral Trading System (MTS) are..... A) MFN. B) NT. C) TRN. D) All true. Show Answer Correct Answer: D) All true. 5. Goods imported from abroad are called..... A) Merchandise. B) Export commodities. C) Imported commodities. D) Export premium. Show Answer Correct Answer: C) Imported commodities. 6. What does effects of international trade within countries does the Ricardian Model assumes away? A) Specialization. B) Distribution of Income. C) Resources. D) Economies of Scale. Show Answer Correct Answer: B) Distribution of Income. 7. An ..... economy is the economy of a developing nation. A) Existing market. B) Emerging market. C) Emergency market. D) Enriching market. Show Answer Correct Answer: B) Emerging market. 8. The practical application of techniques and knowledge is called A) Competition. B) Marketing. C) Economics. D) Technology. Show Answer Correct Answer: A) Competition. 9. Assume the real interest rate in country x increases relative to other countries. What will happen to the value of the currency and net exports in country x? A) The currency will appreciate and net exports will decrease. B) The currency will depreciate and net exports will increase. C) The currency will stay the same and net exports will stay the same. D) The currency will appreciate and net exports will increase. E) The currency will depreciate and net exports will decrease. Show Answer Correct Answer: A) The currency will appreciate and net exports will decrease. 10. There are many ..... you can fly to from Middle East. A) Destinations. B) Networks. C) Goods. D) None of above. Show Answer Correct Answer: A) Destinations. 11. What is important to review when generating a tariff invoice? A) Minimum and maximum amounts. B) Account balance. C) Supplier invoice. D) Tax rate. Show Answer Correct Answer: A) Minimum and maximum amounts. 12. What are tariffs and how do they affect international trade? A) Tariffs are restrictions imposed on exported goods, making them difficult to sell in international markets. They can affect international trade by limiting the availability of goods and promoting self-sufficiency within countries. B) Tariffs are subsidies given to imported goods, making them cheaper for consumers. They can affect international trade by increasing the demand for those goods and promoting trade agreements between countries. C) Tariffs are taxes imposed on imported goods, making them more expensive for consumers. They can affect international trade by increasing the cost of imported goods, leading to a decrease in demand for those goods and potentially causing trade disputes between countries. D) Tariffs are incentives given to foreign companies to encourage them to export more goods. They can affect international trade by boosting the economy and creating more job opportunities in importing countries. Show Answer Correct Answer: C) Tariffs are taxes imposed on imported goods, making them more expensive for consumers. They can affect international trade by increasing the cost of imported goods, leading to a decrease in demand for those goods and potentially causing trade disputes between countries. 13. Which of the following does not belong to the arguments in favor of trade barriers? A) Military self-sufficiency. B) Protects the standard of living. C) Helps maintain local employment. D) Affects type of goods and services which enter the world trade. Show Answer Correct Answer: D) Affects type of goods and services which enter the world trade. 14. One legal effort that can be taken to restore/improve a situation as a quick (unilateral) response to the impact of losses due to the implementation of subsidies is: A) Imposition of income tax. B) Imposition. C) Imposition of countervailing duties. D) All wrong. Show Answer Correct Answer: C) Imposition of countervailing duties. 15. Whereas in a closed economy ..... an open economy is one where ..... A) Imports equal exports / imports are usually greater than imports. B) Saving is equal to investment / saving is not equal to investment. C) There is no international trade / there is international trade. D) There is no government intervention in the market / there is substantial government intervention. Show Answer Correct Answer: C) There is no international trade / there is international trade. 16. About how much of the total federal budget does foreign aid account for? A) 1%. B) 5%. C) 10%. D) 15%. Show Answer Correct Answer: A) 1%. 17. The currency of most countries within the European Union A) Exchange. B) Currency. C) Euro. D) Eurozone. E) Exchange rate. Show Answer Correct Answer: C) Euro. 18. The purchase of a foreign service is an example of A) Visible import. B) Invisible import. C) Visible export. D) Invisible export. Show Answer Correct Answer: B) Invisible import. 19. To overcome the negative impacts of international trade can be done by..... A) Promote foreign products. B) Bringing foreign labor. C) Providing subsidies to small industries. D) Importing branded goods. Show Answer Correct Answer: C) Providing subsidies to small industries. 20. A governmental action that is the opposite of privatization is ..... A) Publicization. B) Nationalization. C) Militarization. D) Governmentalization. Show Answer Correct Answer: B) Nationalization. ← 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