This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 21 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Packaging A) Packaging. B) Packet. C) Package. D) Wrapping. Show Answer Correct Answer: A) Packaging. 2. Foreign trade A) Benefits developed countries. B) Benefits underdeveloped countries. C) Benefits democratic countries. D) Benefits all countries. Show Answer Correct Answer: D) Benefits all countries. 3. Buying goods and services from another country is considered? A) Exporting. B) Importing. Show Answer Correct Answer: B) Importing. 4. When a country is not able to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good, it is said to have a(n) ..... A) Absolute advantage. B) Resource advantage. C) First-mover advantage. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 5. Absolute advantage is a relative advantage in one economic activity that one nation enjoys in comparison with other nations. A) True. B) False. Show Answer Correct Answer: B) False. 6. The ..... proposes that tariffs be imposed on imported manufactured goods to give domestic firms temporary protection from foreign competition until they could fully establish themselves. A) National defense argument. B) Industrial policy. C) Infant industry argument. D) Maintenance of existing jobs. Show Answer Correct Answer: C) Infant industry argument. 7. What is the main purpose of using a Mexican customs broker? A) To expedite the clearance process at Mexican ports. B) To minimize tariffs and duties on imported goods. C) To avoid penalties for non-compliance with Mexican customs regulations. D) To facilitate communication between importers/exporters and Mexican authorities. Show Answer Correct Answer: D) To facilitate communication between importers/exporters and Mexican authorities. 8. Assistance given to a country in need, in term of money, goods, or services is called: A) Foreign policy. B) Foreign nations. C) Foreign aid. D) Foreign exchange. Show Answer Correct Answer: C) Foreign aid. 9. How the Creative Economy Provides Welfare to Society A) Profitable. B) Only for large businesses. C) Harm. D) Big capital. Show Answer Correct Answer: A) Profitable. 10. What does the European Union ensure for all of its citizens? A) Natural rights and equality. B) Human rights and equality. C) Equal wages and a job. D) Shelter and food. Show Answer Correct Answer: B) Human rights and equality. 11. The most important argument in favour of international trade is A) Low transportation costs. B) Historical trade patterns. C) Absolute advantage. D) Comparative advantage. Show Answer Correct Answer: D) Comparative advantage. 12. Which of the following correctly identifies the difference between economic growth and economic development A) Economic development relates to an increase in real national income whereas economic growth relates to improvements in the quality of living standards and wellbeing. B) Economic growth relates to an increase in real national income whereas economic growth relates to improvements in the quality of living standards and wellbeing. C) Economic development relates to per capita income levels whereas economic growth relates to an increase in the freedoms and choices available to individuals. D) Economic growth relates to an increase in the Gini coefficient whereas economic development relates to increases in the state of technology employed in the agricultural sector. Show Answer Correct Answer: B) Economic growth relates to an increase in real national income whereas economic growth relates to improvements in the quality of living standards and wellbeing. 13. Goods or services bought from foreign nations. A) Exports. B) Imports. Show Answer Correct Answer: B) Imports. 14. The importance of international trade was recognized by Adam Smith & David Ricardo A) True. B) False. Show Answer Correct Answer: A) True. 15. It means the seller is responsible for the goods until they are loaded. The seller must pay all costs related to getting the goods to port and onto vessel. A) INCOTERMS-FREE ON BOARD. B) INCOTERMS-COST & FREIGHT (CFR). C) INCOTERMS-COST INSURANCE FREIGHT (CIF). D) None of above. Show Answer Correct Answer: A) INCOTERMS-FREE ON BOARD. 16. They provide certainty to apply the preference of tariff or non-tariff benefits, based on the regional manufacturing composition of a good. There is no standard for the determination of its formula, it depends on the interests and negotiations between the signatory countries of an FTA. A) Trade of services. B) Rules of Origin. C) Non tariff regulations. D) Relief of duties. Show Answer Correct Answer: B) Rules of Origin. 17. An open economy is ..... A) An economy which sells goods freely but not services. B) An economy which sells services freely but not goods. C) An economy which sells goods and services freely. D) An economy which does not sell goods and services freely. Show Answer Correct Answer: C) An economy which sells goods and services freely. 18. Which countries is NAFTA with? A) US, Germany, Mexico. B) US, Germany, Canada. C) US, Germany, Canada, Mexico. D) US, Canada, Mexico. Show Answer Correct Answer: D) US, Canada, Mexico. 19. One role of multinational corporations in globalisation is to A) Produce and sell in many countries. B) Restrict the transfer of workers skills between nations. C) Increase the costs of global branding. D) Obstruct the international division of labour and corresponding efficiency gains. Show Answer Correct Answer: A) Produce and sell in many countries. 20. The most appropriate definition of trade protectionism is: A) Government policies that deliberately restrict the level of foreign competition in local markets. B) Government policies that deliberately restrict Australian producers selling goods or services overseas. C) The government protecting Australian citizens from harmful overseas goods and services. D) Increased spending on military equipment by the government. Show Answer Correct Answer: A) Government policies that deliberately restrict the level of foreign competition in local markets. ← 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