This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 177 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 177 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. International trade is most likely to generate short-term unemployment in: A) Industries in which there are neither imports nor exports. B) Import-competing industries. C) Industries that sell to domestic and foreign buyers. D) Industries that sell to only foreign buyers. Show Answer Correct Answer: B) Import-competing industries. 2. ..... may not be a benefit of trade. A) Increased economic development. B) A source of foreign exchange. C) Economies of scale. D) Reduced possibilities of war. Show Answer Correct Answer: A) Increased economic development. 3. The major international economic problem is winners and losers in the trade industry A) True. B) False. Show Answer Correct Answer: B) False. 4. In charge of handling used or damaged goods A) Reverse logistics. B) Cross-docking. C) Transshipment. D) None of above. Show Answer Correct Answer: A) Reverse logistics. 5. Which of the following is a tax levied on land and buildings, and sometimes boats and cars? It is also a key source of revenue for local governments. A) Property Tax. B) Income Tax. C) Ownership Tax. D) Sales Tax. Show Answer Correct Answer: A) Property Tax. 6. According to economists like Adam Smith, who benefits from free trade? A) Only sellers. B) Only buyers. C) No one. D) Both buyers and sellers. Show Answer Correct Answer: A) Only sellers. 7. Internationl trade-oriented jobs have grown 3 times the growth of U.S.-dependent jobs. A) True. B) False. Show Answer Correct Answer: A) True. 8. Which of these international trade concepts results in specialization and trade increases in total world output (as seen in the economic concept of opportunity costs)? A) Balance of payments. B) International tariffs. C) Comparative advantage. D) Absolute advantage. Show Answer Correct Answer: C) Comparative advantage. 9. What is the primary drawback of open account (trade credit) terms in international trade? A) High level of trust required. B) Complexity in documentation. C) Limited availability for small businesses. D) Increased risk of non-payment. Show Answer Correct Answer: D) Increased risk of non-payment. 10. A country says that it wishes to increase its trade protection policies. What might that involve? A conservation of resources and taxes on external costs B eliminating waste in the use of resources and grants to multinational companiesC increased self sufficiency and increased tariffs D price controls and increased regulations on domestic monopoly industries A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 11. The principle objective of PATA is to safeguard the interest of the travelling public and to maintain high ethical standards within the travel trade. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 12. Suppose, the real interest rate increases by 3%, the domestic inflation is 4% and the foreign inflation is 2%. How much will the nominal exchange rate change? $%\Delta e=%\Delta\epsilon\ +\ \pi_{f\ }-\pi_d$ A) 1%. B) 2%. C) 3%. D) 4%. Show Answer Correct Answer: A) 1%. 13. Explain the concept of cultural diffusion and its impact on globalization. A) Cultural diffusion only occurs within a single country. B) Cultural diffusion has no effect on globalization. C) Cultural diffusion leads to the isolation of cultures. D) Cultural diffusion promotes cultural exchange and integration. Show Answer Correct Answer: D) Cultural diffusion promotes cultural exchange and integration. 14. Two countries will still exchange through international trade even if one country has all the advantages A) Absolute advantage theory. B) Theory of comparative advantage. C) Collaborative advantage theory. D) None of above. Show Answer Correct Answer: B) Theory of comparative advantage. 15. GDP is the abbreviation of ..... A) Gross domestic product. B) Green domestic product. C) Gross domestic production. D) None of above. Show Answer Correct Answer: A) Gross domestic product. 16. Which country is the member of AFTA? A) Arab Saudi. B) Thailand. C) America. D) Germany. Show Answer Correct Answer: B) Thailand. 17. The U.S. controls imports through the U.S. Customs Service, which is a division of the ..... Department. A) State. B) Treasury. C) Defense. D) Trade. Show Answer Correct Answer: B) Treasury. 18. Included in Plurilateral Trade Agreements are..... A) Dispute Settlement Understanding (DSU). B) Agreement on Safeguards. C) Agreement on Trade and Civil Aircraft. D) Agreement on Rules of Origin. Show Answer Correct Answer: C) Agreement on Trade and Civil Aircraft. 19. When the world equilibrium price is above or > the domestic equilibrium price ..... A) There would be an export surplus as suppliers would produce more than that demanded by the domestic economy and would then export it to receive the higher world price. B) There would be an export SHORTAGE as suppliers would produce more than that demanded by the domestic economy and would then export it to receive the higher world price. Show Answer Correct Answer: A) There would be an export surplus as suppliers would produce more than that demanded by the domestic economy and would then export it to receive the higher world price. 20. Who should export wands? A) Ravenclaw. B) Gryffindor. Show Answer Correct Answer: B) Gryffindor. ← 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