This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 28 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to the method of payment, all are the role of banks, except A) Money transfer. B) Document handling. C) Payment guarantee. D) Setting seller's and buyer's obligations. Show Answer Correct Answer: D) Setting seller's and buyer's obligations. 2. Tax set on imported goods A) Tariff. B) Free Trade. C) Trade Failure. D) Trade Dependency. Show Answer Correct Answer: A) Tariff. 3. In 2020, the Trump government increased the tax rate for Chinese cotton products. What type of trade barrier is it? A) Tariff. B) Standard. C) Quota. D) Embargo. Show Answer Correct Answer: A) Tariff. 4. With an exchange rate of 0.73 euros for 1 dollar, a US company is able to purchase 100 trucks from Germany. If the exchange rate shifted to 1 euro for 1 dollar, what would happen to the price the US company would pay for trucks? A) The price would go down, because the US dollar has appreciated. B) The price would go up, because the US dollar has depreciated. C) The price would go up, because the US dollar has appreciated. D) The price would go down, because the US dollar has depreciated. Show Answer Correct Answer: A) The price would go down, because the US dollar has appreciated. 5. What is an example of imports? A) Cars produced in the UK and sold abroad. B) Sugar purchased from Brazil. C) Cocoa needed for chocolate production. D) Goods and services made in one country and sold to another country. Show Answer Correct Answer: B) Sugar purchased from Brazil. 6. GATT was transformed into WTO (World Trade Organisation) on 1st January ..... A) 1985. B) 1995. C) 2005. D) 2015. Show Answer Correct Answer: B) 1995. 7. A decrease in the value of a currency; it takes more of your currency to buy another A) Currency Appreciation. B) Trade Surplus. C) NAFTA. D) Currency Depreciation. Show Answer Correct Answer: D) Currency Depreciation. 8. Provides financial support for global public goods that support the well being of poor people A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: A) World Bank. 9. A quota can BEST be described as A) A ban on the sale of goods. B) A license given to import goods. C) A external tariff amoung countries. D) A restricted on the quantity imported. Show Answer Correct Answer: D) A restricted on the quantity imported. 10. The following are reasons for engaging in international trade EXCEPT A) Encourage opportunity in local direct investment. B) Increase productivity. C) Make the market more competitive. D) Increased efficiency. Show Answer Correct Answer: A) Encourage opportunity in local direct investment. 11. Which is NOT an advantage of international trade A) Export of surplus production. B) Import of defence material. C) Dependence on foreign countries. D) Availability of cheap raw materials. Show Answer Correct Answer: C) Dependence on foreign countries. 12. Which of the following are part of international trade? A) Politics. B) Economicsfactors. C) Social factors. D) All of these. Show Answer Correct Answer: D) All of these. 13. Assume that the government wants to borrow more money than before. How would this affect the loanable funds market? A) Increase interest rates. B) Decrease interest rates. C) The change to interest rates cannot be determined. D) None of above. Show Answer Correct Answer: A) Increase interest rates. 14. The food aid was distributed ..... per family, with larger families receiving more A) Shuttle. B) Intrepid. C) Proportionately. D) Reward. Show Answer Correct Answer: C) Proportionately. 15. If the equilibrium exchange rate changes so that it takes more dollars to buy a British pound, then- A) The dollar has appreciated in value. B) Americans will import more British goods. C) The British will buy fewer U.S. goods. D) The dollar has depreciated in value. Show Answer Correct Answer: D) The dollar has depreciated in value. 16. What are the two components of international trade? A) Import and trade. B) Import and export. C) Export and consumer. D) Country and consumer. Show Answer Correct Answer: B) Import and export. 17. In which year did COVID-19 break out? A) 2017. B) 2018. C) 2019. D) 2020. Show Answer Correct Answer: D) 2020. 18. The WTO argues that removing tariff barriers and subsidies in theagricultural sector could: A) Protect agriculture farmers in developed nations. B) Llower the overall level of agricultural trade. C) Lower prices to consumers. D) Restrict global economic growth. Show Answer Correct Answer: C) Lower prices to consumers. 19. Trade between different regions or countries A) Domestic trade. B) World trade. C) Foreign trade. D) Import. Show Answer Correct Answer: B) World trade. 20. What is the WTO? (World Trade Organization) A) World Tourism Organization. B) World Technical Organization. C) World Trade Office. D) World Trade Organization. Show Answer Correct Answer: D) World Trade Organization. ← 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