This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 20 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Taxes applied to imports and exports. A) Duty. B) Customs. C) Both are correct. D) None of above. Show Answer Correct Answer: C) Both are correct. 2. Economies have become increasingly linked through globalisation.What would discourage this? A) Creation of a single world market. B) Direct foreign investment by multinational companies. C) Expansion of trade in financial services. D) Protectionist policies by trading groups. Show Answer Correct Answer: D) Protectionist policies by trading groups. 3. In which case the exporter is reimbursed? A) If the exporter purchases insurance. B) If the exporter obtains a credit. C) If the exporter buys additional services. D) If the exporter is a regular customer. Show Answer Correct Answer: A) If the exporter purchases insurance. 4. What is the term that describes a group of firms cooperating with each other in order to avoid competition? A) Competition. B) Collusion. C) Communication. D) Combination. Show Answer Correct Answer: A) Competition. 5. All are advantages of foreign trade, except A) People get foreign exchange. B) Cheaper goods. C) Nations compete. D) Optimum utilization of countries' resources. Show Answer Correct Answer: A) People get foreign exchange. 6. Imports involve A) Goods in, money in, positive in Current Account. B) Goods in, money out, negative in Current Account. C) Goods in, money in, positive in Financial Account. D) Goods in, money out, negative in Financial Account. Show Answer Correct Answer: B) Goods in, money out, negative in Current Account. 7. What is NOT some reasons for government intervention in international trade? A) To prevent unemployment. B) To protect infant industries. C) To further foreign policy goals. D) To preserve politician identity. Show Answer Correct Answer: D) To preserve politician identity. 8. Factors that are not included in the background to the emergence of international trade are..... A) Differences in natural resources. B) The emergence of cultural differences. C) Differences in climate and weather. D) Differences in the quality of human resources. Show Answer Correct Answer: C) Differences in climate and weather. 9. Bill of exchange A) Bill of exchange. B) Bill of lading. C) Exchange invoice. D) None of above. Show Answer Correct Answer: A) Bill of exchange. 10. Why is international trade insurance important, with regards to its impact on various aspects of business? A) Creating financial instability in the organization. B) Facilitating the expansion of business to another level. C) Undermining relationships with customers. D) None of above. Show Answer Correct Answer: B) Facilitating the expansion of business to another level. 11. ..... refers to the policy measures adopted by a country with reference to its export and Imports A) EXIM Policy. B) Economic Policy. C) Fiscal Policy. D) Monetary Policy. Show Answer Correct Answer: A) EXIM Policy. 12. What is the impact of international trade on economic growth, job creation, and poverty reduction? A) International trade leads to exploitation of workers in developing countries. B) International trade has no impact on poverty and unemployment. C) International trade only benefits wealthy countries and corporations. D) International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to increased economic growth, job creation, and poverty reduction. Show Answer Correct Answer: D) International trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to increased economic growth, job creation, and poverty reduction. 13. What is meant by free trade? A) Exports are transported free of charge. B) Commissions for changing currency are waived for international trade transactions. C) A government allows open access to all markets in its country. D) International transactions are free of indirect taxes such as VAT. Show Answer Correct Answer: C) A government allows open access to all markets in its country. 14. When one producer has a lower opportunity cost of production than another producer for a given item, what exists? A) Absolute advantage. B) Absolute disadvantage. C) Comparative advantage. D) Comparative disadvantage. Show Answer Correct Answer: C) Comparative advantage. 15. This account records a nation's imports and exports of goods, services, net investment income, and net transfers. A) Current account. B) Financial/capital account. C) Official reserves. D) None of above. Show Answer Correct Answer: A) Current account. 16. One of the main characteristics that is able to capture organizational culture is..... A) Global attention. B) Performance orientation. C) Technical expertise. D) Innovation and managing risk. Show Answer Correct Answer: D) Innovation and managing risk. 17. An economics professor is discussing a measure of trade that involves a comparison of exports and imports of goods for the year just ended. What name is given to this measurement? A) Export trade balance. B) Merchandise trade balance. C) Import trade balance. D) Current account balance. Show Answer Correct Answer: B) Merchandise trade balance. 18. Which of the following is more closely related to opportunity cost? A) Absolute advantage. B) Comparative advantage. Show Answer Correct Answer: B) Comparative advantage. 19. This is moral rather than commercial. It has the most direct impact on business. A) Religious law. B) Civil law. C) Common law. D) None of above. Show Answer Correct Answer: A) Religious law. 20. The following are the government's efforts to improve the creative economy, except..... A) Protection of the community's Intellectual Property Rights (IPR). B) Education and training for workers. C) Increasing the recruitment of members from abroad. D) Market development and promotional facilities. Show Answer Correct Answer: C) Increasing the recruitment of members from abroad. ← 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