This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 187 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 187 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following which is not the benefits of international trade are ..... A) Obtains goods that are not produced domestically. B) Highly dependent on imported goods. C) Friendly relations between countries are established. D) Earn a profit. Show Answer Correct Answer: B) Highly dependent on imported goods. 2. What is trade liberalization? A) Imposing more restrictions on the exchange of goods between nations. B) Reducing the amount of goods that can be traded between nations. C) Removal or reduction of restrictions on the free exchange of goods between nations. D) Increasing taxes on imported goods. Show Answer Correct Answer: C) Removal or reduction of restrictions on the free exchange of goods between nations. 3. Quota A) Fixed limit on the amount of import/export of a product set when trading with another country. B) Rate at which one currency may be converted into another; used when world trade occurs. C) Comparison of amounts of foreign currency taken into a country versus amounts of domestic currency paid out. D) Country's total amount of exports minus the total amount of imports. Show Answer Correct Answer: A) Fixed limit on the amount of import/export of a product set when trading with another country. 4. NAFTA is a 1994 ..... between the United States, Mexico, and Canada. A) Free trade agreement. B) Quota. C) Tariff. D) Exchange rate. Show Answer Correct Answer: A) Free trade agreement. 5. What is the foreign exchange market? A) A market where commodities like gold and oil are traded. B) A market where currencies of different countries are bought and sold. C) A market where goods and services are traded between nations. D) A market where stocks and bonds are traded. Show Answer Correct Answer: B) A market where currencies of different countries are bought and sold. 6. Collaboration between competitors is fashionable. A) True. B) False. Show Answer Correct Answer: A) True. 7. The data below shows how much Jessie and Jane can produce given standard baking ingredients. Which statement is true? Cookies CakesJesse 10 2 Jane 20 5 A) Jane has comparative advantage in cookies. B) Jane has comparative advantage in cakes. C) Jessie has comparative advantage in both goods. D) Jessie has absolute advantage in both goods. Show Answer Correct Answer: B) Jane has comparative advantage in cakes. 8. Which one of these product is in the decline stage of the product life cycle? A) Smartphone Apps. B) Music CDs. C) Smart Televisions. D) Online movie and game tickets. Show Answer Correct Answer: B) Music CDs. 9. What is export? A) The good and services that is produces and sells to other nations. B) The goods and services that one country buys from other countries. C) The price of one nation's currency in terms of another nation's currency. D) None of above. Show Answer Correct Answer: A) The good and services that is produces and sells to other nations. 10. This department supervises the payment of invoices A) Finances. B) Accountant. C) Financial manager. D) None of above. Show Answer Correct Answer: A) Finances. 11. How does a strong pound affect imports? A) They are cheaper. B) They are dearer. C) They stay the same. D) None of above. Show Answer Correct Answer: A) They are cheaper. 12. What social impact has globalization had on global population mobility? A) Increased regional homogeneity. B) Facilitated the movement of people across borders. C) Reduced cross-cultural interactions. D) Isolated people within their home countries. Show Answer Correct Answer: B) Facilitated the movement of people across borders. 13. What happens when a country is importing more goods and services than it is exporting and leads to debt? A) Trade Failure. B) Trade Surplus. C) Trade Profits. D) International Trade. Show Answer Correct Answer: A) Trade Failure. 14. *If an exchange rate is LESS THAN 1, then the dollar is ..... than that currency and those foreign goods and services cost us ..... A) Stronger; more. B) Stronger; less. C) Weaker; more. D) None of above. Show Answer Correct Answer: C) Weaker; more. 15. An Australian electrical retailer decides to buy products from an overseas business. This is a ..... and ..... A) Leakage, import. B) Injection, export. C) Leakage, export. D) Injection, import. Show Answer Correct Answer: A) Leakage, import. 16. This outlines the concept of Most-Favored Nation (FMN) treatment and states that trade concessions granted to one member are applied immediately and without conditions to all other members. A) Article 1. B) Article 2. C) Article 3. D) Article 4. Show Answer Correct Answer: A) Article 1. 17. Import A) (v) to carry into the country. B) (phrasal verb) to leave the ground. C) (v) to carry out of the country. D) (v) to move or go up. Show Answer Correct Answer: A) (v) to carry into the country. 18. The basic elements of subsidies under the SCM Agreement are, except: A) Financial contribution. B) By the Government or Public Agency. C) Involving multinational companies. D) Provide benefits. Show Answer Correct Answer: C) Involving multinational companies. 19. How can trade agreements increase international trade? A) By erecting trade barriers. B) By preventing trade wars. C) By reducing exports. D) By banning imports. Show Answer Correct Answer: B) By preventing trade wars. 20. What was the first country that reactivated its economy? A) Colombia. B) Peru. C) China. D) Spain. Show Answer Correct Answer: C) China. ← 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