This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 36 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 36 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is a place where goods are stored after shipping, but before the payment of duties of those goods. A) Bonded warehouse. B) Facility. Show Answer Correct Answer: A) Bonded warehouse. 2. Which of the following is true of Logistic Laws? A) Economically-driven regulations. B) Service-oriented regulations. C) Prosperity-driven regulations. D) Agreement-based regulations. Show Answer Correct Answer: B) Service-oriented regulations. 3. These tariffs, quotas, and trade barriers are used to protect local firms. These barriers are imposed to countries depending on the countries political and diplomatic relationships. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. Rules of Origin are the main pillars in determining tariffs for member countries of the Trade Regime A) YES. B) NO. Show Answer Correct Answer: A) YES. 5. What is the role of customs brokers in a country? A) They are responsible for providing customs services, and imposing taxes for the products and services of a country. B) They handle the sale of taxes. C) They are responsible for providing customs services, collecting taxes and collecting documents for imports or exports. D) None of above. Show Answer Correct Answer: C) They are responsible for providing customs services, collecting taxes and collecting documents for imports or exports. 6. What is MOST LIKELY to happen to US imports and exports if the US dollar appreciates relative to other currencies? A) Imports will decrease, exports will increase. B) Both imports and exports will increase. C) Imports will increase, exports will decrease. D) Both imports and exports will decrease. Show Answer Correct Answer: C) Imports will increase, exports will decrease. 7. This is the cost of one good in terms of the reduced production of another good. It is the value of the next best thing given up when you make a choice. A) Interdependence. B) Opportunity cost. C) Comparative advantage. D) Productivity. Show Answer Correct Answer: B) Opportunity cost. 8. Which trade terms pose the highest risk for Exporter? A) Open account trade. B) Unconfirmed letter of credit. C) Cash in advance. D) None of above. Show Answer Correct Answer: A) Open account trade. 9. What is a true statement about how specialization increases productivity in a nation? A) If a nation has an absolute advantage for producing a specific product, it should produce that product. B) It allows a nation to allocate its resources more efficiently. C) It enables a nation to be completely self-sufficient. D) It enables a nation to diversify its agricultural producation. Show Answer Correct Answer: B) It allows a nation to allocate its resources more efficiently. 10. Under documentary collection, the buyer's bank guarantees payment to the seller. A) True. B) False. Show Answer Correct Answer: B) False. 11. It refers to a policy that promotes unrestricted exchange of goods and services between countries. It typically involves the removal or reduction of trade barriers, such as tariffs and quotas. A) Free trade. B) Tariff. Show Answer Correct Answer: A) Free trade. 12. How are exchange rates determined? A) Exchange rates are determined by the stock market. B) Exchange rates are determined by the government. C) Exchange rates are determined by the weather conditions. D) Exchange rates are determined by the foreign exchange market. Show Answer Correct Answer: D) Exchange rates are determined by the foreign exchange market. 13. This term means the seller is responsible for the goods until they are loaded. A) FOB. B) CFR. Show Answer Correct Answer: A) FOB. 14. International business is an activity of buying and selling of commodities and manufacturing of goods (services) across national borders and at global and/or international scale. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. What is a quota in international trade? A a government grant to encourage production B an administrative and technical barrier C a limit on the quantity of imports D a tax on imports A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 16. A tax of 20 cents per unit of imported cheese would be an example of a (an): A) Compound tariff. B) Effective tariff. C) To the value of the tariff. D) Specific tariff. Show Answer Correct Answer: D) Specific tariff. 17. Government sets regulations to ensure safety of goods. A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: B) Standard. 18. International Trade allows countries to specialise A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 19. ..... refers sale of good abroad at a price below their cost and below the price charged in the domestic market. A) Export Subsidies. B) Dumping. C) Transit Tariff. D) Quota. Show Answer Correct Answer: B) Dumping. 20. Brave A) Intrepid. B) Distill. C) Extract. D) Take out. Show Answer Correct Answer: A) Intrepid. ← 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