This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 35 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 35 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The second assumption of Comparative Advantage Theory:In each nation, ..... is the only input. A) Skills. B) Labor. C) Money. D) Technology. Show Answer Correct Answer: B) Labor. 2. Which organization placed an embargo on the sale of oil to the US in 1973 as a way to punish the US for its support of Israel in the Yom Kippur War? A) WTO. B) NAFTA. C) EU. D) OPEC. Show Answer Correct Answer: D) OPEC. 3. Special tax placed on foreign goods sold in the United States A) Tariff. B) Embargo. C) Quota. D) Imports. Show Answer Correct Answer: A) Tariff. 4. ANLA, in Colombia, has authorised the piloting of fracking, sustaining that it is acting in ..... with the ..... law. A) Compliance-environmental. B) Accompishment-Nature. C) Accomplishment-environmental. D) Equity-community. Show Answer Correct Answer: A) Compliance-environmental. 5. International Trade Policy (export sector), except A) Price discrimination. B) Premium award. C) Dumping. D) Free trade politics. E) Export encouragement. Show Answer Correct Answer: E) Export encouragement. 6. The ability to produce a good by using fewer inputs or by creating more outputs than another producer A) Absolute Advantage. B) Comparative Advantage. C) Inputs. D) Outputs. Show Answer Correct Answer: A) Absolute Advantage. 7. In 2015, China was the world's largest exporter of manufactured goods and a major importer of oil and minerals. China devalued the yuan (renminbi) by 2%. According to economic theory, what would have been a consequence of this devaluation? A China paid less in foreign currencies for imports. B China reduced its demand for oil and minerals. C China's exports became less competitive. D China's trading partners improved their balance of trade with China. A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 8. Which of the following international trade and commerce activities is related to logistics and transportation? A) Floral design. B) Textile manufacturing. C) International shipping. D) Fitness instruction. Show Answer Correct Answer: C) International shipping. 9. Countries usually impose restrictions on free foreign trade to ..... A) Protect foreign producers. B) Protect foreign consumers. C) Protect domestic producers. D) Protect domestic consumers. Show Answer Correct Answer: C) Protect domestic producers. 10. ..... is the earliest theories on international trade. A) Comparative advantage. B) Absolute Advantage. C) Mercantilism. D) Competitive advantage. Show Answer Correct Answer: B) Absolute Advantage. 11. What is the name for the difference between a country's exports and imports of goods and services? A) Foreign direct investment. B) Current account balance. C) Trade balance. D) Fiscal deficit. Show Answer Correct Answer: C) Trade balance. 12. How has globalization created opportunities for e-commerce businesses? A) By increasing trade barriers. B) By limiting access to international markets. C) By allowing small businesses to compete internationally. D) By reducing the need for international trade agreements. Show Answer Correct Answer: C) By allowing small businesses to compete internationally. 13. International trade amounts to a sixth of the total economic activity in the world. About $ ..... of goods and services cross international borders each year. A) 19 billion. B) 19 trillion. C) 19 million. D) None of above. Show Answer Correct Answer: B) 19 trillion. 14. The country of Israel prohibits the importation of meat and meat-products that are not certified kosher by the Chief Rabbinate of Israel. This is a type of which of the following? A) A quota. B) An embargo. C) A tariff. D) A tax. Show Answer Correct Answer: B) An embargo. 15. Which one of the following is a negative consequence of globalisation for less-developed countries A) Enhanced cultural uniqueness. B) Skills transferred to domestic workers. C) Improved terms of trade. D) Wider income inequalities. Show Answer Correct Answer: D) Wider income inequalities. 16. Benefits of tariffs: A) Create problems between governments. B) Initiating a trade war. C) Hurting domestic consumers. D) Protecting jobs in the country. Show Answer Correct Answer: D) Protecting jobs in the country. 17. A developing country's two major sources of income from international trade are fishing and tourism. If the country's exchange rate depreciated, what is likely to happen? A) Imported goods would become cheaper for local people. B) The country would definitely become poorer. C) The price of fish sold as exports would become cheaper. D) Tourists to the country would be discouraged by higher prices. Show Answer Correct Answer: C) The price of fish sold as exports would become cheaper. 18. What is a 'Fixed Exchange Rate' A) The government/central bank entirely or predominantly determines the exchange rate. B) The forex market entirely or predominantly determines the exchange rate. C) The trading partners entirely or predominantly determines the exchange rate. D) The importing countries entirely or predominantly determines the rate. Show Answer Correct Answer: A) The government/central bank entirely or predominantly determines the exchange rate. 19. Countries in a monetary union A) Can exchange their various currencies at no cost between member states. B) Often face convergence requirements. C) Have greater flexibility when conducting monetary policy. D) Can revalue or devalue their currency. Show Answer Correct Answer: B) Often face convergence requirements. 20. 'Fail to account for international transportation costs, ' is one of the limitations of early trade theories. A) True. B) False. Show Answer Correct Answer: A) True. ← 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