This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 203 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 203 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following was the most important in creating the global economy that exists today? A) The use of high taxes for imports and exports. B) Improvements in technology such as the Internet. C) The creation of one form of currency (money) used to trade. D) The success of the Communist governments in guiding trade. Show Answer Correct Answer: B) Improvements in technology such as the Internet. 2. Which of the following factors will bring rapid growth to international trade? I Lower corporate tax rateII Reduce non-tariff barriersIII Implement rules on foreign exchange controlIV Improve the efficiency of communication and transportation A) And I, II, III. B) B I, II, IV. C) C I, III, IV. D) D II, III, IV. Show Answer Correct Answer: B) B I, II, IV. 3. Explain the concept of import quotas. A) Import quotas restrict the quantity of a specific good that can be imported into a country. B) Import quotas increase the quantity of a specific good that can be imported into a country. C) Import quotas have no impact on the quantity of goods that can be imported into a country. D) Import quotas only apply to exports from a country, not imports. Show Answer Correct Answer: A) Import quotas restrict the quantity of a specific good that can be imported into a country. 4. Culture contains various understandings so it is called..... A) Integrated. B) Contextual. C) Multidimensional. D) Unidimensional. Show Answer Correct Answer: C) Multidimensional. 5. What are the major challenges faced by countries in international trade? A) Language barriers and communication issues. B) Lack of demand for products in foreign markets. C) High transportation costs and logistics challenges. D) The major challenges faced by countries in international trade include trade barriers, currency fluctuations, political instability, and regulatory differences. Show Answer Correct Answer: D) The major challenges faced by countries in international trade include trade barriers, currency fluctuations, political instability, and regulatory differences. 6. Which of the following is not a main argument in favor of protectionism? A) Infant industry argument. B) National Security Argument. C) Protecting domestic jobs argument. D) National Stability Argument. Show Answer Correct Answer: D) National Stability Argument. 7. A situation in which producers in one nation depend on others to provide goods and services they do not produce is called A) Trade interdependence. B) International interdependence. C) Economic interdependence. D) Corporate interdependence. Show Answer Correct Answer: C) Economic interdependence. 8. Physical control to ban the imports of certain goods because of economics, social and politics is known as A) Tariff. B) Quota. C) Embargo. D) License. Show Answer Correct Answer: C) Embargo. 9. Type of trade barrier that places rules on quality of products A) Embargo. B) Subsidy. C) Standard. D) Tariff. Show Answer Correct Answer: C) Standard. 10. What do businesses need to import from the EU and export to the EU? A) EORI number. B) CAT number. C) FIORI number. D) GIORI number. Show Answer Correct Answer: A) EORI number. 11. Which country is a leading exporter of insurance services? A) China. B) United States. C) Great Britain. D) Germany. Show Answer Correct Answer: C) Great Britain. 12. If the U.S. dollar is strong compared to the Japanese yen, then the dollar buys A) Less in Japan than the yen buys in the United States. B) Less in the United States than the yen buys in Japan. C) More in Japan than the yen buys in the United States. D) More in the United States than the yen buys in Japan. Show Answer Correct Answer: C) More in Japan than the yen buys in the United States. 13. According to the method of payment as bank transfer, what are the role of banks? A) (A) Money transfer. B) (B) Document handling. C) (C) Payment guarantee. D) Only (A). E) Only (A) & (B). Show Answer Correct Answer: D) Only (A). 14. Foreign trade creates ..... among countries A) Conflicts. B) Cooperation. C) Hatred. D) Both a & b. Show Answer Correct Answer: B) Cooperation. 15. A note or ..... is provided stating the total nominal value of the goods shipped. A) Deal. B) Application. C) Payment. D) Invoice. Show Answer Correct Answer: D) Invoice. 16. Taxes on goods entering a country A) Trade surplus. B) Trade taxes. C) Embargo. D) Tariffs. Show Answer Correct Answer: D) Tariffs. 17. It is one of the seven themes of international economics where an exchange of goods and services between countries almost always result to mutual benefit A) The Gains from Trade. B) The Pattern of Trade. C) The Balance of Payments. D) The International Capital Market. Show Answer Correct Answer: A) The Gains from Trade. 18. New capital outflow refers to which of the following A) The difference between the prime rate and the discount rate. B) The difference between the amount of foreign assets purchased by domestic investors and domestic assets purchased by foreigners. C) The difference between exports and imports. D) The difference between private debt and public debt. E) The difference between the amount of foreign assets purchased by public entities and the amount purchased by private entities. Show Answer Correct Answer: B) The difference between the amount of foreign assets purchased by domestic investors and domestic assets purchased by foreigners. 19. An international bank that offers low-interest loans, advice, and information to developing nations; an agency of the United Nations. A) World Trade Organization. B) United Nations. C) World Bank. D) NAFTA-USMCA. Show Answer Correct Answer: C) World Bank. 20. Which factor is NOT typically considered when selecting a business location? A) Labour costs. B) Access to markets. C) Cultural preferences. D) Currency exchange rates. Show Answer Correct Answer: C) Cultural preferences. ← 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