This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 26 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one of the following statements is true regarding the way in which a lack of property rights can act as a barrier to growth and development A) A scarce resource is depleted to extinction because the owner has sold it too cheaply. B) Geographical immobility of labour means that workers cannot afford to move to where the job vacancies are. C) A scarce resource is depleted to extinction because it had zero cost to the users. D) The rents are too high on accommodation for existing workers to be able to afford to live in the city. Show Answer Correct Answer: C) A scarce resource is depleted to extinction because it had zero cost to the users. 2. National competitive advantage is created through opportunities and pressures created by: A) Resource endowment in terms of natural and human resources. B) Sophistication and scale of domestic demand. C) Strategies, structure, and rivalry of domestic competitors. D) Availability-related and supporting industries. E) All the above is correct. Show Answer Correct Answer: E) All the above is correct. 3. Which trade terms pose the highest risk for Importer? A) Open account trade. B) Unconfirmed letter of credit. C) Cash in advance. D) None of above. Show Answer Correct Answer: C) Cash in advance. 4. Which of the following is a reason for importing A) INCREASE SALES / PROFITS. B) INTENSE COMPETITION. C) CHOICE AND VARIETY. D) SURVIVAL. Show Answer Correct Answer: C) CHOICE AND VARIETY. 5. What is product life cycle theory for international trade? A) Trade between countries takes place because each country has different levels of resource intensity. B) International trade takes place because countries are at different stages of production levels. C) Trade between countries is determined by the availability of related and supported industries. D) Trade between countries is determined by similar comparative advantage to exchange similar products. Show Answer Correct Answer: B) International trade takes place because countries are at different stages of production levels. 6. What argument for protection believes that new or emerging industries should be protected. A) National Defense. B) Protecting domestic jobs. C) Infant Industry. D) Keeping money at Home. Show Answer Correct Answer: C) Infant Industry. 7. What percentage of total U.S. imports is accounted for by intrafirm imports? A) 30%. B) 10%. C) 20%. D) 40%. Show Answer Correct Answer: D) 40%. 8. Which economic actor would most likely not support free trade? A) Nike. B) McDonalds. C) Coastal Lumber Company. D) Coca Cola. Show Answer Correct Answer: C) Coastal Lumber Company. 9. Methods of protectionismComplete or partial prohibition of commerce and trade with a particular country in order to isolate it A) Tariffs. B) Quotas. C) VER. D) Non-competitive purchasing by governments. E) Embargoes. Show Answer Correct Answer: E) Embargoes. 10. What are items transported into a country from a foreign country? A) Exports. B) Subsidies. C) Embargoes. D) Imports. Show Answer Correct Answer: D) Imports. 11. Irish people going on holiday to Spain is an example of a ..... A) Visible import. B) Invisible import. C) Visible export. D) Invisible export. Show Answer Correct Answer: B) Invisible import. 12. ..... is the oldest International Trade theory. A) Country Similarity Theory. B) Theory of Absolute Cost advantage. C) Product Life Cycle Theory. D) Mercantilism Theory. Show Answer Correct Answer: D) Mercantilism Theory. 13. The WTO (World Trade Organization) is the ..... organization devoted to promoting international trade. A) Largest. B) Smallest. Show Answer Correct Answer: A) Largest. 14. Legal limit on the amount of a good that can be imported into a country. A) Quota. B) Embargo. Show Answer Correct Answer: A) Quota. 15. The goods and services a country decides to export is determined by what types of advantages? A) Quality and Quantity. B) Authentic and Comparative. C) Absolute and Collective. D) Absolute and Comparative. Show Answer Correct Answer: D) Absolute and Comparative. 16. A person who puts money into a project to earn a profit. A) Investor. B) Invest. C) Invesstor. D) Infestor. Show Answer Correct Answer: A) Investor. 17. Which of the following trade agreements has been primarily associated with the European Union (EU)? A) ASEAN. B) NAFTA (now USMCA). C) Schengen agreement. D) MERCOSUR. Show Answer Correct Answer: C) Schengen agreement. 18. What is CITES? A) A multilateral treaty to protect endangered plants and animals. B) An international convention to protect endangered species from the threats of trade. C) A global agreement among governments to regulate or ban international trade in species under threat. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. Producer sells a product below the sale price of their home market A) Gouging. B) Dumping. C) Deficit. D) Surplus. Show Answer Correct Answer: B) Dumping. 20. The process by which people and goods move easily across borders. A) Import. B) Export. C) International Trade. D) Globalization. Show Answer Correct Answer: D) Globalization. ← 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