This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 42 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following has a negative impact to exporters in Malaysia? A) A Country W exports goods to Malaysia. B) B Country X grants preferential tariff to Malaysia. C) C Country V imposes import duties on products from Country Y. D) D Country Z sets import quota on products from Malaysia. Show Answer Correct Answer: D) D Country Z sets import quota on products from Malaysia. 2. The production of just a few items is A) Absolute advantage. B) Comparative advantage. C) Specialization. D) Free trade. Show Answer Correct Answer: C) Specialization. 3. Fearless A) Daredevil. B) Bargaining. C) Gift. D) Basic form. Show Answer Correct Answer: A) Daredevil. 4. The positive impact of international trade is..... A) Increase the country's foreign exchange. B) The emergence of dependency in a country. C) The emergence of a cultural shift. D) Implementation of dumping politics. Show Answer Correct Answer: A) Increase the country's foreign exchange. 5. Activities of purchasing goods from abroad A) Impor. B) Export. C) Importer. D) Exporter. Show Answer Correct Answer: A) Impor. 6. Before World War I, the world's major currencies where fixed in terms of what? A) Gold. B) Dollar. C) Currency. D) Economy. Show Answer Correct Answer: A) Gold. 7. Airway bill A) Sea waybill. B) Air waybill. C) Terrestrial sport card. D) None of above. Show Answer Correct Answer: B) Air waybill. 8. The activities of a country to bring in goods from abroad are called A) Impor. B) Export. C) Importer. D) Exporter. Show Answer Correct Answer: A) Impor. 9. You purchased a potato from overseas in your own name. Is this an international trade? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 10. A. I don't think we have been introduced before. My name is Linda Smith. A) Pleased to meet you Ms Smith. B) I'm not pleased to meet you I'm sorry. C) I'm afraid I don't want to meet you. D) What do you do Ms Smith?. Show Answer Correct Answer: A) Pleased to meet you Ms Smith. 11. "shipper" is the same as "consignor" A) True. B) False. Show Answer Correct Answer: A) True. 12. The ability of a country to produce a good at a lower opportunity cost than another country can. A) Absolute advantage. B) Comparative advantage. C) Law of comparative advantage. D) No advantages. Show Answer Correct Answer: B) Comparative advantage. 13. What mode of transport allows companies to transport large quantities at a low cost? A) Rail transport. B) Air transport. C) Road transport. D) None of above. Show Answer Correct Answer: A) Rail transport. 14. Select the potential effects of embargoes, tariffs, and import quotas. C A) Increase trade and exports. B) Decreases the population. C) Decrease sales and imports. D) Increases the population. Show Answer Correct Answer: C) Decrease sales and imports. 15. The basis for international trade stems from A) Absolute advantage. B) The difference in production cost from one country to another. C) Bartering. D) The similarity in production costs from one country to another. Show Answer Correct Answer: C) Bartering. 16. What does FDI stand for in international economics? A) Foreign Direct Investment. B) Financial Data Integration. C) Fiscal Development Index. D) Foreign Debt Investment. Show Answer Correct Answer: A) Foreign Direct Investment. 17. What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tariffs A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 18. A nation will gain if: A) Exports decrease and imports increase. B) Both exports and imports increase. C) Exports increase and imports decrease. D) Both exports and imports decrease. Show Answer Correct Answer: C) Exports increase and imports decrease. 19. Who has established official abbreviations for all currencies, which are now commonly used? A) International Organization for Standardization (ISO). B) Incoterms (International Commercial Terms). C) International Chamber of Commerce (ICC). D) International Monetary Fund (IMF). Show Answer Correct Answer: A) International Organization for Standardization (ISO). 20. Which of the following transactions would increase the current account surplus in Japan's balance of payments accounts? A) A Japan-based company sells automobiles to Canada. B) Marta, a Japanese investor, buys stocks in a Japanese company. C) Dana, a Canadian, buys stocks in a Japanese company. D) A Japan-based company buys a piece of equipment from Germany. E) Leah, a French citizen, works at a Japanese company in Paris. Show Answer Correct Answer: A) A Japan-based company sells automobiles to Canada. ← 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