This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 41 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The large trade of Belgium and the Netherlands suggests what factor that plays an important role in determining the volume of trade? A) Transport Costs and Geography. B) Product Costs and Distance. C) Tariff Costs and Logistics. D) Trade Costs and National Borders. Show Answer Correct Answer: A) Transport Costs and Geography. 2. Adam Smith emphasised that specialisation on the basis of absolute cost advantage would lead to ..... of world production. A) Stabilization. B) Minimisation. C) Variability. D) Maximisation. Show Answer Correct Answer: D) Maximisation. 3. Courier: A) Company which specializes in the speedy and secure delivery of small goods and packages. B) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. C) Company which specializes in the speedy and secure delivery of small goods and packages. D) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. E) Person or name in a freight contract to whom goods have been shipped or turned over for care. Show Answer Correct Answer: A) Company which specializes in the speedy and secure delivery of small goods and packages. 4. To impose certain conditions before granting consent. A) Embargo. B) Tariff. C) Standards. D) Quotas. Show Answer Correct Answer: A) Embargo. 5. If 1 US dollar is worth 0.80 Euros, what is the exchange rate for converting Euros to US dollars? A) $ 1.25. B) $ 1.50. C) $ .80. D) $ 1.10. Show Answer Correct Answer: C) $ .80. 6. Which of the following is a major flaw associated with mercantilism? A) Mercantilists do not support government intervention in trade. B) Mercantilists recommend countries to maintain a negative trade balance. C) Mercantilists view trade as a zero-sum game. D) Mercantilists recommend policies to maximize imports. Show Answer Correct Answer: C) Mercantilists view trade as a zero-sum game. 7. The following are implications for international business except: A) First-mover implications. B) Policy implications. C) None of the above. D) None of above. Show Answer Correct Answer: C) None of the above. 8. Freight forwarding only participates in the transportation of goods to one destination to another. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. The quality of today's computers is due to technological advances caused by competition. A) Pro. B) Con. Show Answer Correct Answer: A) Pro. 10. What are intellectual property rights? A) Patent, trademark, copyright, trademark, trade secret. B) Patent, trademark, copyright, industrial design, geographical indication. C) Patent, trademark, corporate, trade secret. D) Patent, trades, copyright, trade secret. Show Answer Correct Answer: B) Patent, trademark, copyright, industrial design, geographical indication. 11. Human Sales is a trade..... A) Goods. B) Service. C) Which is prohibited. D) None of above. Show Answer Correct Answer: C) Which is prohibited. 12. Who issues the Inspection Certificate? A) A seller. B) A buyer. C) An import broker. D) An authority. Show Answer Correct Answer: D) An authority. 13. Commodity X i L-intensive and commodity Y is K-intensive A) True. B) False. Show Answer Correct Answer: A) True. 14. 7/ Which of the following is an example of a company benefiting from dynamic increasing profits through innovation? A) A company that relies on outdated technology and practices. B) A tech startup that constantly develops new software features. C) A company that cuts costs by reducing product quality. D) A retail store with consistently declining sales. Show Answer Correct Answer: B) A tech startup that constantly develops new software features. 15. International trade is mutually beneficial to nations if it results in:a) specialisation of skillsb) Higher level of productionc) Worldwide availability of goods and servicesd) differentiation of prices and wagese) diffusion of knowledge and culture A) All the statements are correct. B) Only a, b, c and d are correct. C) Only a, b, c and e are correct. D) All the statements are incorrect. Show Answer Correct Answer: C) Only a, b, c and e are correct. 16. Scenario:Better Mousetrap Inc.Better Mousetrap Inc. is a manufacturing company that sells pest control products. Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S. market. Senior Vice President Marc Wallace, even recommended expanding sales overseas in order to increase company revenues. 9) In reviewing his fulfillment process, Jack realizes that different customers opt for different types of shipping based on their preferences. Which of the following would most likely help Jack provide better shipping service to his customers? A) Introduce overnight delivery but at a very high cost. B) Reduce costs by implementing a cheaper but slower delivery method. C) Implement a universal delivery method to capitalize on efficiency gains. D) Offer customers a choice of delivery methods with different speeds and costs. Show Answer Correct Answer: D) Offer customers a choice of delivery methods with different speeds and costs. 17. What is a fixed rate of exchange? A) A system where the exchange rate for currency changes based on supply and demand. B) A system where the currency of one nation is fixed in relation to other currencies. C) A system where the value of a currency is determined by the price of gold. D) A system where the value of a currency is determined by the balance of trade. Show Answer Correct Answer: B) A system where the currency of one nation is fixed in relation to other currencies. 18. If Australia has more land per worker, and Belgium has more capital per worker, then if trade were to open up between these two countries A) Australia would export the land-intensive product. B) Belgium would import the capital-intensive product. C) Both countries would export some of each product. D) Trade would not continue since Belgium is a smaller country. Show Answer Correct Answer: A) Australia would export the land-intensive product. 19. An expenditure switching policy designed to correct a deficit on the current account of the balance of payments will aim to A) Increase the price of exports and reduce the price of imports. B) Cause changes in spending away from export production and towards import consumption. C) Cause changes in spending away from import consumption towards export production. D) Reduce productivity in the domestic economy. Show Answer Correct Answer: C) Cause changes in spending away from import consumption towards export production. 20. One of the main benefits of international trade is A) Increasing local competition. B) Minimizing the global market. C) Diversify business risks. D) Increase production costs. Show Answer Correct Answer: C) Diversify business risks. ← 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