This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 200 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 200 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Explain the concept of free trade and its impact on global economy. A) Free trade is the imposition of tariffs and quotas between countries to restrict the exchange of goods and services. B) Free trade is the unrestricted exchange of goods and services between countries without the imposition of tariffs, quotas, or other restrictions. It can lead to increased economic efficiency, lower prices for consumers, and greater economic growth. However, it can also lead to job displacement and income inequality in some industries and countries. C) Free trade has no impact on the global economy and does not affect economic efficiency or growth. D) Free trade only benefits a few select industries and does not lower prices for consumers. Show Answer Correct Answer: B) Free trade is the unrestricted exchange of goods and services between countries without the imposition of tariffs, quotas, or other restrictions. It can lead to increased economic efficiency, lower prices for consumers, and greater economic growth. However, it can also lead to job displacement and income inequality in some industries and countries. 2. What is the term for the coordination of production between different parts of a multinational? A) International trade. B) Interfirm trade. C) Domestic trade. D) Intrafirm trade. Show Answer Correct Answer: D) Intrafirm trade. 3. A disadvantage of specialisation:Countries are vulnerable to cuts in the supply of goods that they don't produce themselves. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 4. Companies that want to succeed in international trade must A) No need to adapt their business strategy. B) Understand cultural and legal differences in target markets. C) Ignoring the needs of local consumers. D) Focus only on low production costs. Show Answer Correct Answer: B) Understand cultural and legal differences in target markets. 5. One of the major pillars upon which the practice of mercantilism rested was ..... A) Economies of scale. B) Pricing mechanism. C) Excessive imports. D) Trade surpluses. Show Answer Correct Answer: D) Trade surpluses. 6. Leontief found that A) United States. exports are capital intensive relative to United States imports. B) United States imports are labour intensive relative to United States exports. C) United States exports are neither labour nor capital intensive. D) None of the above. Show Answer Correct Answer: D) None of the above. 7. Which of the following would definitely be included in the capital and financial account for Japan? A) A German company buys toy parts from Japan. B) A man living in Japan buys equities in the Tokyo stock exchange. C) A Japanese company purchases capital equipment. D) A Canadian bank buys Japanese Treasury bonds. E) A Japanese citizen living in France sends a portion of her earnings to her family in Japan. Show Answer Correct Answer: D) A Canadian bank buys Japanese Treasury bonds. 8. ..... is the rate at which one currency will be exchanged for another A) Exchange rate. B) Export. C) Free trade. D) Protectionist policy. Show Answer Correct Answer: A) Exchange rate. 9. Which of the choices is an example of gains from trade? A) Indirect Method of Production. B) Range of Choices becomes Wider. C) It makes residents of each country better off. D) None of above. Show Answer Correct Answer: A) Indirect Method of Production. 10. These are deep water ports built away from actual ports. A) Inland ports. B) Out Ports. C) Entrepot Ports. D) Ports of call. Show Answer Correct Answer: B) Out Ports. 11. Methods of protectionismA physical limit on the quantity of a good imported. This increases the share of the market for domestic producers A) Tariffs. B) Quotas. C) VER. D) Non-competitive purchasing by governments. E) Embargoes. Show Answer Correct Answer: B) Quotas. 12. The main justification for an embargo on foreign goods is to A) Political reasons. B) Raise revenue. C) Increase consumption or the good. D) None of above. Show Answer Correct Answer: A) Political reasons. 13. Economic arguments for intervention are concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers). A) True. B) False. Show Answer Correct Answer: B) False. 14. Trade Remedies is..... A) A number of general categories of actions to protect the domestic industry in certain circumstances. B) A number of specific action categories to protect the domestic industry in certain circumstances. C) A number of categories of actions specific to the penetration of domestic industry in export activities. D) A number of general categories of measures for the penetration of domestic industry in export activities. Show Answer Correct Answer: B) A number of specific action categories to protect the domestic industry in certain circumstances. 15. ..... is an increase in the value of one currency regarding another currency. . A) Appreciation. B) Depreciation. C) Trade barriers. D) Import quotas. Show Answer Correct Answer: A) Appreciation. 16. Pakistan is self sufficient in ..... A) Electronics. B) Machinery. C) Food. D) None of above. Show Answer Correct Answer: C) Food. 17. A country can have an increased surplus in itsbalance of trade as a result of A) An increase in domestic inflation. B) Declining imports and rising exports. C) Higher tariffs imposed by its trading partners. D) An increase in capital inflow. E) An appreciating currency. Show Answer Correct Answer: B) Declining imports and rising exports. 18. Who developed the specific factors model? A) Ronald Jones and Paul Samuelson. B) Ronald Samuelson and Paul Jones. C) Paul Ronald and Jones Samuelson. D) None. Show Answer Correct Answer: A) Ronald Jones and Paul Samuelson. 19. It is the production of a product when it is more efficient than any other country in producing it A) Comparative Advantage. B) Mercantilism. C) Absolute Advantage. D) Comparative and Absolute Advantage. Show Answer Correct Answer: C) Absolute Advantage. 20. Which of the following determines the volume of trade between two countries? A) The Size of the Two Countries GDPs. B) The Distance between the Countries. C) Distance is Inversely Proportional. D) All of the options are correct. Show Answer Correct Answer: D) All of the options are correct. ← 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