This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 23 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. International business involves the buying and selling of products or services between countries. A) True. B) False. Show Answer Correct Answer: A) True. 2. These are the agreements between two (2) or more partners designed to capture gain from trade beyond those agreements currently attainable under WTO treaties. A) General Agreement on Trade in Services. B) Multilateral and Bilateral Trade Agreements. C) World Trade Organization Agreements. D) General Agreement on Tariffs and Trade. Show Answer Correct Answer: B) Multilateral and Bilateral Trade Agreements. 3. Many businesses move their headquarters to try and avoid paying taxes in their home country. A) Pro. B) Con. Show Answer Correct Answer: B) Con. 4. Domestic Trade A) Trade within the same region or country. B) Method used to stop the shipment of certain products to and from a particular country for economic or political reasons. C) Special tax placed on foreign goods sold in the United States. D) Fixed limit on the amount of import/export of a product set when trading with another country. Show Answer Correct Answer: A) Trade within the same region or country. 5. Japan will trade electronic equipment for goods in other countries as long as A) Other countries have absolute advantage in electronic equipment. B) Other countries have more desirable exchange rates. C) Japans balance of payments is in positive territory. D) Japan has comparative advantage in electronic equipment. Show Answer Correct Answer: D) Japan has comparative advantage in electronic equipment. 6. Question 1:The bank that adds its confirmation to a credit upon the issuing bank's authorization or request is called ..... A) Advising bank. B) Confirming bank. C) Issuing bank. D) Nominated bank. Show Answer Correct Answer: B) Confirming bank. 7. Imports cause money to ..... A) Leave Ireland. B) Enter Ireland. Show Answer Correct Answer: A) Leave Ireland. 8. In what year did Starbucks experience a significant number of store closures in Australia? A) 2006. B) 2007. C) 2008. D) 2009. Show Answer Correct Answer: C) 2008. 9. Is there any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods? A) No, it helps domestic consumers, firms, and workers. B) No, the only ones who suffer are the foreign firms. C) Yes, consumers must pay higher prices. D) Yes, consumers must pay higher taxes. Show Answer Correct Answer: A) No, it helps domestic consumers, firms, and workers. 10. HO (factor-proportions) stated that countries traded completely specialize in the good in which they have a comparative advantage. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 11. The rate a lender charges to a borrower for a loan, presented as a fixedpercentage of the total amount borrowed A) GDP. B) Spot Rate. C) Inflation Rate. D) Interest Rate. Show Answer Correct Answer: D) Interest Rate. 12. A disadvantage of specialisation:Specialisation can lead to overreliance on one industry-if something happened to negatively affect that industry, it would have a severe impact on the whole economy. 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. 13. The ..... for computers is very competititve. A) Market. B) Trade. C) Goods. D) Weather. Show Answer Correct Answer: A) Market. 14. Who has the comparative advantage for brooms? A) Ravenclaw. B) Gryffindor. Show Answer Correct Answer: A) Ravenclaw. 15. What is Export Trade? A) The purchase or buying of goods or services from a foreign country for consumption in the importing country. B) The sale of goods to a foreign country. C) The export of goods from one country to another. D) The re-export of goods from a third country. Show Answer Correct Answer: B) The sale of goods to a foreign country. 16. Infant Industries Argument suggests: A) Protecting newly established industries. B) Limiting all international trade. C) Eliminating tariffs. D) Advocating for fixed exchange rates. Show Answer Correct Answer: A) Protecting newly established industries. 17. Dispute settlement competence at the WTO applies to the types of disputes as found in..... A) Appendix 1 & Appendix 2. B) Appendix 1, Appendix 2, Appendix 3. C) Appendix 1, Appendix 2, Appendix 3, Appendix 4. D) All wrong. Show Answer Correct Answer: A) Appendix 1 & Appendix 2. 18. Theory of comparative advantage was presented by A) Adam Smith. B) Ricardo. C) Hicks. D) Guide. Show Answer Correct Answer: B) Ricardo. 19. ..... is an investment that a company makes into another company by the way of acquiring shares or providing loans A) FPI. B) Export. C) JV. D) FDI. Show Answer Correct Answer: A) FPI. 20. A saving account in a bank represents the function of money: A) Store of value. B) A medium of exchange. C) A standard for deferred payments. D) A measure of value. Show Answer Correct Answer: A) Store of value. ← 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