This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 175 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 175 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is a classical theory today when a country's goal is to achieve and maintain a trade surplus A) Mercatilism. B) Trade mercantilism. C) Neo mercantilism. D) Mercantalist. Show Answer Correct Answer: C) Neo mercantilism. 2. The incorrect statement below regarding Certificate of Origin (COO) is..... A) A document explaining the original certificate. B) Document that explains the country of origin of an imported or exported item. C) Documents required as a condition for exemption from import duties for imported products originating from countries that have entered into an agreement with the Indonesian government. D) This document can be issued by institutions or agencies that do not have the authority to issue COO. Show Answer Correct Answer: D) This document can be issued by institutions or agencies that do not have the authority to issue COO. 3. When the dollar strengthens it pushes the balance of trade toward a A) Surplus. B) Shortage. C) Deficit. D) Equilibrium. Show Answer Correct Answer: A) Surplus. 4. Assume that the terms from trade are 1 coffee for 1 tea. Who benefits from this trade? A) Peru. B) Colombia. C) Neither. D) Both. Show Answer Correct Answer: A) Peru. 5. Japan has a 100% tariff on Corvette imports. If a Corvette costs $ 80, 000.00 in the United States, how much would a Japanese person pay for it? Would this increase or decrease U.S. exports to Japan? A) $ 80, 000.00 decrease. B) $ 80, 000.00 increase. C) $ 160, 000.00 decrease. D) $ 160, 000.00 increase. Show Answer Correct Answer: C) $ 160, 000.00 decrease. 6. Pineapples grown in Eleuthra sold in Hawaii A) Import. B) Export. Show Answer Correct Answer: B) Export. 7. Which of the following would appear as a credit item in the UK current account balance? A) Money sent by UK residents to their relatives abroad. B) Expenditure by the British Government in maintaining foreign embassies overseas. C) The expenditure of Japanese tourists on holiday in Britain. D) None of above. Show Answer Correct Answer: C) The expenditure of Japanese tourists on holiday in Britain. 8. Countries use several different techniques to protect industries from the harmful effects of trade ..... Tariffs are one of the most common barriers to trade. A) True. B) False. Show Answer Correct Answer: A) True. 9. A ..... is a group of countries that eliminate all tariffs on trade among themselves but maintain a common external tariff on trade with countries outside the union A) Custom Union. B) Free-trade area. C) Tariff. D) Trade agreement. Show Answer Correct Answer: A) Custom Union. 10. This theory explains what has happened for products like photocopiers and a number of other high technology products developed in the US in the 1960s and 1970s. A) Mercantilism. B) Comparative Advantage. C) Absolute Advantage. D) Product Life Cycle. Show Answer Correct Answer: D) Product Life Cycle. 11. Look at the table enclosed. Which of the following has been incorrectly matched. A) 1. B) 2. C) 4. D) 5. Show Answer Correct Answer: D) 5. 12. Which issues are coverred under scope of trade liberlization under WTO Agreements A) Trade in Goods. B) Trade in Service. C) Trade Related Intellectual Property. D) All the above is correct. Show Answer Correct Answer: D) All the above is correct. 13. An expansionary fiscal policy would take these measures except A) An increase in government spending. B) A reduction in taxation. C) An increase in government revenues. D) A reduction in government expenditure. Show Answer Correct Answer: C) An increase in government revenues. 14. A country is encouraged to produce those goods or services where they have an absolute advantage or comparative advantage A) True. B) False. Show Answer Correct Answer: A) True. 15. U.S. exports provides/sells about ..... of world's total exports. A) 8.5%. B) 85.5%. C) 50.5%. D) None of above. Show Answer Correct Answer: A) 8.5%. 16. Financial sector relates to Australia's trade with other nations. A) True. B) False. Show Answer Correct Answer: B) False. 17. Which mean is less expensive? A) Airfreight. B) Ocean freight. Show Answer Correct Answer: B) Ocean freight. 18. The Sri Lankan government decides to offer financial support to local firms. Of what is this an example? A a quota B a subsidy C a tariff D exchange control A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 19. Economies of scale are the reduction in costs of production achieved through increased output. A) True. B) False. Show Answer Correct Answer: B) False. 20. Exchange A) Barter. B) Forfaiting. C) Consigment. D) Time-draft. Show Answer Correct Answer: A) Barter. ← 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