This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 178 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 178 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How can businesses adapt the product in different countries? A) By not making any changes to the product. B) By ignoring local traditions. C) By increasing the price for local tastes. D) By adapting the product to suit local taste. Show Answer Correct Answer: D) By adapting the product to suit local taste. 2. What is one way the government helps those who are harmed by international trade? A) By providing job training programs. B) By imposing trade barriers. C) By subsidizing domestic industries. D) By promoting exports. Show Answer Correct Answer: A) By providing job training programs. 3. Which is not the aim of international trade policy..... A) Protect domestic production. B) Encouraging the rate of economic growth. C) Increasing economic growth. D) Technology transfer. Show Answer Correct Answer: A) Protect domestic production. 4. Large-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale and how best to enter. A) True. B) False. Show Answer Correct Answer: B) False. 5. A nation's ability to produce a product at a lower opportunity cost than another country is referred to as what? A) Globalization. B) Foreign trade. C) Absolute advantage. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 6. Country A can produce 10 apples or 3 oranges.Country B can produce 12 apples and 3 oranges.Which country has an absolute advantage? A) A. B) B. C) Neither. D) Both. Show Answer Correct Answer: B) B. 7. The process by which businesses or other organizations develop international influence or start operating on an international scale A) Imports. B) Absolute Advantage. C) Globalization. D) Trade Surplus. Show Answer Correct Answer: C) Globalization. 8. Which organization regulates the production, pricing, and marketing of petroleum? A) APEC. B) OPEC. C) EU. D) NAFTA. Show Answer Correct Answer: B) OPEC. 9. The United States trade deficit causes A) He value of the dollar to strengthen in foreign exchange markets. B) The value of the dollar to fall in foreign exchange markets. C) Increased employment opportunities for Americans in import industries. D) Worldwide recessions. Show Answer Correct Answer: B) The value of the dollar to fall in foreign exchange markets. 10. Taxes on imported goods that minimize the price advantage they have over domestic goods are called A) Protective embargoes. B) Revenue embargoes. C) Protective tariffs. D) Revenue tariffs. Show Answer Correct Answer: C) Protective tariffs. 11. Which of the following is not the reasons for importing the category of product A) A greater variety of goods may be made available through imports. B) The imported goods may be cheaper than those produced domestically. C) The imported goods may not offer advantages other than lower prices over domestic production. D) Better quality or design, higher status. Show Answer Correct Answer: C) The imported goods may not offer advantages other than lower prices over domestic production. 12. During the Financial crisis in 2008, The collapse of New York stock exchange, The government took over some collapsing private companies by providing financial assistance to it. What is the type of economy in this kind of situation? A) Market economy. B) Command economy. C) Mixed economy. D) None of above. Show Answer Correct Answer: C) Mixed economy. 13. Which of the following is a treaty which eliminated all trade barriers between Canada, Mexico, and the United States? A) EU. B) APEC. C) OPEC. D) NAFTA. Show Answer Correct Answer: D) NAFTA. 14. Consumers benefit from imports because they cause the A) Selection of goods to increase and prices to decrease. B) Selection of goods to increase and prices to increase. C) Selection of goods to decrease and prices to decrease. D) Selection of goods to decrease and prices to increase. Show Answer Correct Answer: A) Selection of goods to increase and prices to decrease. 15. What was Adam Smith's reason for recommending free trade-that is, international trade with no tariffs or other governmental barriers to trade? A) Free trade would produce more tax money for the world's governments. B) Free trade would permit consumers to get "free" products from around the world. C) Free trade would enable firms in one country to make extraordinary profits by selling their goods above market prices. D) Free trade would make the world's economies more efficient by permitting firms to compete internationally. Show Answer Correct Answer: A) Free trade would produce more tax money for the world's governments. 16. The condition that results when the value of a nation's exports is greater than the value of its imports is called ..... A) A trade deficit. B) A trade surplus. C) Mercantilism. D) Dumping. Show Answer Correct Answer: B) A trade surplus. 17. How many members does WTO has? A) 164. B) 146. C) 128. D) 126. Show Answer Correct Answer: A) 164. 18. The ..... sector is the largest industrial sector in Pakistan. A) Textile. B) Industrial. C) Mechanical. D) None of above. Show Answer Correct Answer: A) Textile. 19. The price of the catalogue is ..... against your first order. A) Removable. B) Replaceable. C) Rechargeable. D) Refundable. Show Answer Correct Answer: B) Replaceable. 20. A tariff is a tax on A) Exports. B) Food. C) Imports. D) Services. Show Answer Correct Answer: C) Imports. ← 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