This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 192 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 192 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. International trade includes A) Import. B) Export. C) Entrepot. D) All of the above. Show Answer Correct Answer: D) All of the above. 2. Government rules that block or inhibit international trade between countries. A) Barriers to trade. B) Subsidies. C) Protectionism. D) Exchange rate. Show Answer Correct Answer: A) Barriers to trade. 3. Revenue tariffs are A) All are revenue tariffs. B) Applied to a good that is typically not produced in the domestic country, and they are designed to raise revenue for the domestic government. C) Revenue tariffs tend to be fairly low (Not too costly). D) None of above. Show Answer Correct Answer: A) All are revenue tariffs. 4. Leads to lower living standards A) Protectionism. B) Free Trade. Show Answer Correct Answer: B) Free Trade. 5. What has international trade and foreign policy not formed? A) Global interdependence. B) Internationalism. C) Free trade. D) Imports & exports. Show Answer Correct Answer: D) Imports & exports. 6. Trade between different regions or countries is called: A) Domestic trade. B) International trade. C) European Union. D) Balance of trade. Show Answer Correct Answer: B) International trade. 7. A Vietnamese shoe company imports all materials used to produce shoes from a Taiwanese company. It uses all of those materials to produce shoes and then exports back finished shoes to that Taiwanese company. This transaction is considered as A) International processing. B) Re-export. C) Export. D) Switch trade. Show Answer Correct Answer: C) Export. 8. How are exchange rates primarily determined? A) By the forces of supply and demand. B) By the president of each country. C) The WTO (world trade organization) sets them. D) None of above. Show Answer Correct Answer: A) By the forces of supply and demand. 9. International trade is based on which of the following principles? A) Principle of Comparative advantage. B) It should be mutually beneficial to the trading partners. C) Complimentarity and Specialisation of skills. D) All of these. Show Answer Correct Answer: D) All of these. 10. Resources available = 200 units for each country Production in GhanaCocoa = 10 tonsRice = 5 tons Production in South KoreaCocoa = 2.5 tonsRice = 10 tons Question:Which country should specialize in producing Cocoa? A) Ghana. B) South Korea. Show Answer Correct Answer: A) Ghana. 11. In certain situations and conditions, the mechanism that can be used by WTO member countries to waive the implementation of WTO provisions based on the Marrakesh Agreement is called: A) Security exceptions. B) Waiver. C) Balance of payments. D) All wrong. Show Answer Correct Answer: B) Waiver. 12. In 1999, the US announced trade sanctions worth $ 116.8 million, targeting goods from France, Germany, Italy and Denmark. The sanctions were in retaliation for a ban on US hormone-treated beef by which organization? A) ASEAN. B) EU. C) NAFTA. D) WTO. Show Answer Correct Answer: B) EU. 13. Which one of the following is a cause of globalisation A) Firms experiencing diseconomies of scale. B) An increase in tariffs. C) A decrease in the number of global trade blocks. D) Containerisation. Show Answer Correct Answer: D) Containerisation. 14. Which of the following period had experienced biggest fall in world manufacturing. A) 2008-2009 Financial Crisis. B) Covid-19 2020 Crisis . Show Answer Correct Answer: A) 2008-2009 Financial Crisis. 15. Deal A) Space on a ship, train, lorry or plane. B) A number of shipments under one bill of lading. C) Booking reservations. D) That the health and safety standards aremaintained. E) With all the necessary documentation. Show Answer Correct Answer: E) With all the necessary documentation. 16. Assume that there are two countries, A and B, and that they can both produce two goods, X and Y. The theory of comparative advantage predicts that: A) Trade can only take place if country A has an absolute advantage in producing one of the goods, and country B has an absolute advantage in producing the other. B) Trade can take place even if country A has an absolute advantage in both providing that B chooses to specialize in the good in which it has the least comparative disadvantage, and A specializes in the one in which it has the greater comparative advantage. C) Trade between A and B will only take place if both countries are at a comparatively similar stage in the development of their economies. D) None of the above. Show Answer Correct Answer: B) Trade can take place even if country A has an absolute advantage in both providing that B chooses to specialize in the good in which it has the least comparative disadvantage, and A specializes in the one in which it has the greater comparative advantage. 17. Country X trades with only two countries, Nigeria and Malaysia. 80% of Country X's trade is with Nigeria and 20% is with Malaysia. The original value of the trade-weighted exchange rate index is 100. The value of Country X's currency against the Nigerian Naira rises by 10%. The value of Country X's currency against the Malaysian Ringgit rises by 50%. What will be the value of Country X's new trade-weighted exchange rate index?A 115 B 118 C 130D 160 A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 18. Outline type of risk that is unique to a country like Syria, North Korea or Egypt. A) There are two instances where sovereign risk can happen. First, the importer's country may suddenly be at war and thus prohibits any outflow of currency from their country.Second. there are possibilities that the government of the buyer's country imposing exchange control regulation because of political reason. B) As a result of political changes or instability in a country. Instability could stem from a change in government, legislative bodies, other foreign policy makers or military control. C) Business infrastructure in foreign markets will be at different levels of development. This may well have an impact on your ability to get your products to that market. It is important to research your new target market and understand how goods are moved within the country before you commit to that market. D) 1& 3. E) 1 & 2. Show Answer Correct Answer: E) 1 & 2. 19. Economic and political risks can be lessened because risk is spread from different countries. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. Native to a country, not foreign; relating to the life or affairs of a household. A) Damestic. B) Domesstick. C) Domestic. D) Domestic. Show Answer Correct Answer: C) Domestic. ← 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