This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 195 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 195 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The US can produce 1 ton of sugar using 4 acres of land, or they can produce 1 ton of avocados using 6 acres. Ecuador can produce 1 ton of sugar using 5 acres of land or 1 ton of avocados using 4 acres. Which country should produce avocados? A) Ecuador. B) US. C) Not enough information. D) None of above. Show Answer Correct Answer: A) Ecuador. 2. It is when the country's rationale behind why firms expand internationally can basically be explained in terms of the pursuit of additional gains and be obtained in the domestic market ..... A) ECONOMIC MOTIVES. B) STRATEGIC MOTIVES. C) MARKET MOTIVES. D) DEFENSIVE MOTIVES. Show Answer Correct Answer: C) MARKET MOTIVES. 3. Import trade is a type of international trade which involves ..... of goods and services from another country. A) Manufacturing. B) Trading. C) Purchasing. D) Selling. Show Answer Correct Answer: C) Purchasing. 4. Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model A) European landowners should support US-European free trade. B) European capitalists should support US-European free trade. C) All capitalists in both countries should support free trade. D) All landowners should support free trade. Show Answer Correct Answer: B) European capitalists should support US-European free trade. 5. For maritime transport A) Free Alongside Ship (FAS) Free On Board (FOB) Cost and Freight (CFR) Cost, Insurance, and Freight (CIF). B) Ex-Works (EXW) Free Carrier (FCA) Carriage Paid To (CPT) Carriage and Insurance Paid To (CIP) Delivered At Place (DAP Delivered at Place Unloaded (DPU) Delivered Duty Paid (DDP) Free Alongside Ship (FAS) Free On Board (FOB) Cost and Freight (CFR) Cost, Insurance, and Freight (CIF). C) Ex-Works (EXW) Free Carrier (FCA) Carriage Paid To (CPT) Carriage and Insurance Paid To (CIP) Delivered At Place (DAP Delivered at Place Unloaded (DPU) Delivered Duty Paid (DDP). D) None of them. Show Answer Correct Answer: A) Free Alongside Ship (FAS) Free On Board (FOB) Cost and Freight (CFR) Cost, Insurance, and Freight (CIF). 6. The ability to produce more of a given product using a given amount of resources. A) Comparative advantage. B) Absolute advantage. Show Answer Correct Answer: B) Absolute advantage. 7. Goods and services brought in from another country is an A) Export. B) Import. Show Answer Correct Answer: B) Import. 8. Which of the following trading block uses single currency? A) SAFTA. B) CIS. C) NAFTA. D) EU. Show Answer Correct Answer: D) EU. 9. Selling goods to a foreign country is called A) IMPORT. B) EXPORT. C) ENTREPOT. D) RE-EXPORT. Show Answer Correct Answer: B) EXPORT. 10. A protective tariff is used to do which of the following? A) Expand trade. B) Increase revenue. C) Gain a comparative advantage. D) Give inefficient domestic industries an advantage. Show Answer Correct Answer: D) Give inefficient domestic industries an advantage. 11. What are the main functions of the foreign exchange market? A) Facilitate currency conversion, provide liquidity, determine exchange rates, enable hedging and speculation. B) Facilitate stock trading, provide investment advice, determine interest rates, enable borrowing and lending. C) Facilitate commodity trading, provide insurance services, determine inflation rates, enable mergers and acquisitions. D) Facilitate bond trading, provide accounting services, determine stock prices, enable tax planning. Show Answer Correct Answer: A) Facilitate currency conversion, provide liquidity, determine exchange rates, enable hedging and speculation. 12. Embargoes are used to help countries. A) True. B) False. Show Answer Correct Answer: B) False. 13. Distill A) Brave. B) Filter. C) Essence. D) Bargaining. Show Answer Correct Answer: B) Filter. 14. What is an example of a service provided by the transportation and logistics industry? A) Data analysis services. B) Airline ticket sales. C) Giftcard printing. D) Cashless payments. Show Answer Correct Answer: B) Airline ticket sales. 15. Which of the following is the best example of foreign direct investment? A) The Chinese government buying United States Treasury bonds. B) A business in the United States selling machinery to a company in Japan. C) A United States citizen buying Mexican pesos. D) The United States sending earthquake relief aid to Haiti. E) A Japanese software company buying a factory in the United States. Show Answer Correct Answer: E) A Japanese software company buying a factory in the United States. 16. Who has the comparative advantage for capes? A) Camelot. B) Avalon. Show Answer Correct Answer: A) Camelot. 17. What is the role of economies of scale in international trade? A) They enable domestic companies to produce goods at a lower average cost. B) They increase the price of imported goods. C) They limit the quantity of goods that can be imported. D) They protect domestic industries from foreign competition. Show Answer Correct Answer: A) They enable domestic companies to produce goods at a lower average cost. 18. The combination of logistics systems and information systems is a particularly potent source of cost expenditure in many enterprises A) True. B) False. Show Answer Correct Answer: B) False. 19. The World Trade Organization (WTO) oversees international agreements that attempt to A) Lower tariffs. B) Liberalise world trade. C) Increase world trade. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. Which is systematic record ofall the economic transactions between one country and rest of the world A) Balance of trade. B) Balance of transactions. C) Budget. D) Balance of payments. Show Answer Correct Answer: D) Balance of payments. ← 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