This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 189 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 189 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If a business is locally based it is easier to compete in foreign markets, why does this happen? A) Better access to raw materials reducing shipping costs. B) Increased costs. C) Decreased profits. D) Purchasing economies of scale. Show Answer Correct Answer: A) Better access to raw materials reducing shipping costs. 2. A payment in which the importer's bank guarantees payment to the exporter is A) Cash in advance. B) A sales contract. C) A guarantee letter. D) Letter of credit. Show Answer Correct Answer: D) Letter of credit. 3. Protests and attempts to achieve organizational goals through other people are called..... A) Planner. B) Pusher. C) Executor. D) Manager. Show Answer Correct Answer: D) Manager. 4. Liberalism is the dominant approach in A) Northern economics. B) World economics. C) Western economics. D) None of above. Show Answer Correct Answer: C) Western economics. 5. ..... is when a nation or individual concentrates its productive efforts on producing a limited variety of goods A) Exchange rate. B) Tread offs. C) Specialization. D) Balance of trade. Show Answer Correct Answer: C) Specialization. 6. Which of the following is a cost of international trade A) More domestic production for the domestic market. B) More variety of goods for domestic consumers. C) Fewer domestic jobs available. D) Less competition for domestic firms. Show Answer Correct Answer: C) Fewer domestic jobs available. 7. The ..... lists the exact quantity, value, and specifications of the merchandise. A) Pro forma invoice. B) Letter of credit. Show Answer Correct Answer: A) Pro forma invoice. 8. Foreign goods shipped into a country or region A) Export. B) World trade. C) Foreign trade. D) Import. Show Answer Correct Answer: D) Import. 9. Due to Covid 19, Global GDP collapsed and declined at what rate? A) 5%. B) 8%. C) 13%. D) 17%. Show Answer Correct Answer: C) 13%. 10. Since all exchanges (trade) in a market economy are voluntary, how do we know that the exchanges will probably benefit all participants? A) It was ordered by Adam Smith and everything in a market economy must follow his rules. B) Since it is voluntary and everyone's motivation is self-interest, no one would buy or sell if it was not in her or his best interest to do so. C) In market economies, the law demands that no one suffer from any economic exchange. D) We do not know that the exchanges will benefit all participants. It is a social science and such things are just not that definite. Show Answer Correct Answer: A) It was ordered by Adam Smith and everything in a market economy must follow his rules. 11. Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries and import those goods and services for which other countries are relatively more productive? A) Relative advantage. B) Comparative advantage. C) Absolute advantage. D) Specialization of countries. Show Answer Correct Answer: B) Comparative advantage. 12. Goods and services that a country produces and sells to other countries A) Imports. B) Exports. C) Balance of trade. D) Net imports. Show Answer Correct Answer: B) Exports. 13. A complete ban on the import or export of products to a particular country: A) Tariff. B) Quota. C) Embargo. D) Boycott. Show Answer Correct Answer: C) Embargo. 14. Goods and services moved by A) Ships. B) Planes. C) Trucks. D) All are correct. Show Answer Correct Answer: D) All are correct. 15. 'Difference of natural resources' is an important basis of interanational trade. Which of the following factors doesn't explain difference in natural resources? A) Mineral resources are unevenly distributed. B) Variation in climate causes variation in natural vegetation. C) Densely populated countries have large volume of internal trade. D) None of these. Show Answer Correct Answer: C) Densely populated countries have large volume of internal trade. 16. If a country does not have a particular item, they may do ..... A) Export. B) Report. C) Support. D) Import. Show Answer Correct Answer: D) Import. 17. A country that imposes health and safety measures on imports is enforcing a(n) A) Embargo. B) Informal trade barrier. C) Protective tariff. D) Revenue tariff. Show Answer Correct Answer: B) Informal trade barrier. 18. If Slovenia is a small country in world trade terms, then if it imposes a large series of tariffs on many of its imports, this would A) Have no effect on its terms of trade. B) Improve its terms of trade. C) Deteriorate its terms of trade. D) Decrease its marginal propensity to consume. Show Answer Correct Answer: B) Improve its terms of trade. 19. When imports exceed exports, a nation is said to have a ..... A) Balance of Trade. B) Balance of Payments. C) Trade Surplus. D) Trade Failure. Show Answer Correct Answer: D) Trade Failure. 20. What can an importer do to secure itself when making an advance payment to the supplier? A) An advance payment guarantee/bond can be required from the supplier for the advance payment made by the importer to the supplier. It can be in the form of a standby DC. B) An advance payment guarantee/DCcan be required from the supplier for the advance payment made by the importer to the supplier. It can be in the form of a standby PC. C) An advance payment shares can be required from the supplier for the advance payment made by the importer to the supplier. It can be in the form of a standby DC. D) An advance payment guarantee/bond can be required from the supplier for the advance payment made by the importer to the supplier. It can be in the form of a standby CGC. E) All the above. Show Answer Correct Answer: A) An advance payment guarantee/bond can be required from the supplier for the advance payment made by the importer to the supplier. It can be in the form of a standby DC. ← 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