This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 30 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A company may prolong a product's life cycle through international marketing by exporting a product that is in the standardize stage in its home market to a foreign market with high growth prospects ..... A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 2. Those goods, raw materials, and services that are produced in one country and then sold in another A) Exports. B) Imports. C) Trade. D) Market. Show Answer Correct Answer: A) Exports. 3. A transaction that takes money out of a country A) Surplus. B) Debit. C) Defecit. D) Credit. Show Answer Correct Answer: B) Debit. 4. Which two of the following are the most likely effects of the imposition of a tariff on an imported good?a) The domestic price of the imported good will fall b) Overseas production of the good may be stimulated c) Overseas employment will rise d) The domestic price of the imported good will rise e) Gain of tax revenue by the government A) And e). B) And e). C) And d). D) And c). Show Answer Correct Answer: A) And e). 5. What PRIMARILY determines the point a producer chooses on their production possibility frontier? A) Intersection with axes. B) Producer's expected surplus. C) Interaction of supply and demand. D) Producer's preference. E) Producer's market share. Show Answer Correct Answer: D) Producer's preference. 6. Copying the original technology, producing imitative products, discourages foreign firms in expanding their business. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 7. A focus on developing only certain skills or producing only certain goods/services A) Imports. B) Exports. C) Specialization. D) Globalization. Show Answer Correct Answer: C) Specialization. 8. Interest rates in Japan have increased and are now higher than US interest rates. What would happen the value of the dollar? A) It would increase. B) It would decrease. C) It would remain the same. D) None of above. Show Answer Correct Answer: B) It would decrease. 9. What is the main purpose of tariffs in international trade? A) To promote free trade. B) To raise government revenue. C) To encourage foreign investment. D) To reduce import quotas. Show Answer Correct Answer: B) To raise government revenue. 10. What happens to an importer's and an exporter's businesses when the exchange rate depreciates? A) Imports become cheaper and exports become more expensive. B) Imports become more expensive and exports become cheaper. C) Both imports and exports become cheaper. D) Both imports and exports become more expensive. Show Answer Correct Answer: B) Imports become more expensive and exports become cheaper. 11. An industry is characterized by scale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice A) Each country's marginal cost must equal that of the other country. B) Each country's marginal cost must equal that of the other country. C) The monopoly must lower prices in order to sell more. D) The two countries must engage in international trade one with the other. Show Answer Correct Answer: D) The two countries must engage in international trade one with the other. 12. The fifth assumption of Comparative Advantage Theory: ..... don't vary within the level of production and are proportional to the amount of ..... used. A) Costs-labor. B) Labors-cash. C) Costs-cash. D) Technologies-labor. Show Answer Correct Answer: A) Costs-labor. 13. Tariff A) Payment. B) Bill. C) Invoice. D) Tariff. Show Answer Correct Answer: D) Tariff. 14. Another term for craft is..... A) Craft. B) Advertising. C) Design. D) Fashion. Show Answer Correct Answer: A) Craft. 15. When something gives a location an initial advantage in a given industry, ..... "lock in" this advantage even after the circumstances that created the initial advantage are no longer relevant. A) Comparative advantage. B) Historical contingency. C) External economies of scale. D) None of above. Show Answer Correct Answer: C) External economies of scale. 16. What are administrative trade policies? A) Bureaucratic rules that make it difficult for imports to enter a country. B) Taxes levied on imports. C) Restrictions on the quantity of goods that may be imported. D) Payments made by the government to domestic producers. Show Answer Correct Answer: A) Bureaucratic rules that make it difficult for imports to enter a country. 17. The world price of feta cheese is above the domestic price in Greece in the absence of trade. With free trade, Greece would become an ..... of feta cheese. A) Importer. B) Exporter. Show Answer Correct Answer: B) Exporter. 18. Delivery of goods using containers where the delivery of goods in 1 container is owned by more than one sender (seller) and addressed to several consignees (buyers), is called..... A) Stripping. B) Less Container Load. C) Multiple Container. D) Full Container Load. Show Answer Correct Answer: B) Less Container Load. 19. What is one advantage of establishing trade barriers rather than allowing free trade? A) An increase in local regulations. B) The improvement of foreign relations. C) The protection of domestic industries. D) A reduction in foreign product prices. Show Answer Correct Answer: C) The protection of domestic industries. 20. Buying and selling goods across borders A) International Trade. B) Protectionism. C) Absolute Advantage. D) Free Trade. Show Answer Correct Answer: A) International Trade. ← 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