This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 32 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the term for a country's total value of exports minus its total value of imports? A) Trade surplus. B) Trade fails. C) Balance of payments. D) Exchange rate. Show Answer Correct Answer: C) Balance of payments. 2. Mexico, USA, and Canada are part of A) NAFTA. B) ASEAN. C) EU. D) None of above. Show Answer Correct Answer: A) NAFTA. 3. The seller sends the goods to the buyer's warehouse and all costs for shipping the goods are the responsibility of the seller, called delivery..... A) Intertown trade. B) Local trade. C) Loco. D) Franco. Show Answer Correct Answer: D) Franco. 4. According to the 1986 Uruguay Round, the ..... implement the GATT agreement. A) World Trade Organization. B) United Nations. C) International Monetary Fund. D) World Bank. Show Answer Correct Answer: A) World Trade Organization. 5. Setting export goods (prices of goods abroad) cheaper than domestic prices A) Price discrimination policy. B) Premium policy. C) Dumping policy. D) Export ban policy. Show Answer Correct Answer: C) Dumping policy. 6. ..... are government-imposed restraint on the flow of international goods or services. A) Tariff. B) Free trade. C) Trade barriers. D) Import quotas. Show Answer Correct Answer: C) Trade barriers. 7. When determining comparative advantage, one must determine ..... by looking at what I can produce after specialization. A) Opportunity cost. B) Specialization. C) Absolute Advantage. D) Embargoes. Show Answer Correct Answer: A) Opportunity cost. 8. Identify the formula of intra-industry trade index A) $T=1-\frac{\left|X-M\right|}{\text{X+M}}$. B) $T=1-\frac{\left|X+M\right|}{\text{X-M}}$. C) $T=\frac{\left|X-M\right|}{\text{X+M}}$. D) $T=1-\frac{X+M}{\left|X-M\right|}$. Show Answer Correct Answer: A) $T=1-\frac{\left|X-M\right|}{\text{X+M}}$. 9. ..... is this is associated with persons who only work to achieve a particular goal; and then leave the work scene. A) Residual unemployment. B) Frictional unemployment. C) Structured unemployment. D) Seasonal unemployment. Show Answer Correct Answer: A) Residual unemployment. 10. A tariff is an ..... on the dollar value, or quantity of an imported good. A) Excise tax. B) Income tax. Show Answer Correct Answer: A) Excise tax. 11. Industrialised countries X and Y trade with each other. Country X imposes a general tariff of 20% on imports from country Y. In which circumstances would the imposition of the tariff be unfavourable to country X? A if country X is seeking to protect its infant industries B if country X lacks the capacity to produce import substitutes C if imports from country Y have been dumped in country X D if imports of manufactured goods from country Y are price elastic A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 12. If a major economy with a trade deficit were to take action to increase exports, this could mean A) Destabilisation of its currency as it depreciates rapidly. B) Increased protectionism from its trade partners. C) Corresponding harmful trade surpluses for its trade partners. D) Corresponding harmful inflationary increases in aggregate demand for its trade partners. Show Answer Correct Answer: B) Increased protectionism from its trade partners. 13. A legal document between the shipper and carrier detailing the type, quantity and destination of the goods being carried. A) Airway Bill. B) Bill of Exchange. C) Bill of Lading. D) Documentary Bill. Show Answer Correct Answer: C) Bill of Lading. 14. Top management should also be viewed as part of the firm's infrastructure. A) True. B) False. Show Answer Correct Answer: A) True. 15. Who formulated Conventional International Trade Theory that is used to recognized countries as trading partners? A) Adam Smith. B) Eli Heckscher. C) Bertil Ohlin. D) Amado Smith. Show Answer Correct Answer: A) Adam Smith. 16. Having a trade surplus means the country exports more than it imports, while having a trade deficit means the country exports less than it imports. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 17. Lampung can produce coffee efficiently and cheaply and West Java can produce rice efficiently. Then the two regions trade between regions. The factors driving trade between regions in the description above are ..... A) Comparative advantage. B) Absolute advantage. C) Economic advantage. D) Agricultural excellence. Show Answer Correct Answer: A) Comparative advantage. 18. What is the specialization of Japan? A) STEEL. B) OIL. C) ELECTRONICS. D) FLAT DISPLAY. Show Answer Correct Answer: C) ELECTRONICS. 19. To generate internal funds, an economy must A) Spend more than it makes. B) Print more money. C) Generate more than it produces. D) Produce more than it consumes. Show Answer Correct Answer: D) Produce more than it consumes. 20. A market economy: A) Answers the What, How and For Whom questions the way they have always been answered. B) Answers the What, How and For Whom questions by central authority. C) Answers the What, How and For Whom questions using prices determined by the interaction of supply and demand. D) None of above. Show Answer Correct Answer: C) Answers the What, How and For Whom questions using prices determined by the interaction of supply and demand. ← 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