This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 43 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the foreign exchange rate? A) The price of goods and services in different countries. B) The price of stocks and bonds in different currencies. C) The price of gold in different currencies. D) The price of a currency in the currencies of other nations. Show Answer Correct Answer: D) The price of a currency in the currencies of other nations. 2. Four attributes consisting Porter's Diamond, except: A) Demand conditions. B) Supply conditions. C) Factor endowments. D) None of above. Show Answer Correct Answer: B) Supply conditions. 3. What is meaning about absolute advantage? A) The desire of the state to produce certain goods that are desperately needed by citizens. B) The ability of a country to produce certain types of goods at a lower cost than other countries because of differences in efficiency. C) The ability of a country to produce other types of goods at a lower cost than other countries because of differences in efficiency. D) The willingness of the state to produce other goods whose costs are lower than the costs incurred by other countries . Show Answer Correct Answer: B) The ability of a country to produce certain types of goods at a lower cost than other countries because of differences in efficiency. 4. ..... is the development of industries in a country or region on a wide scale. A) Exchange rate. B) Industrialization. C) Stabilization. D) Protectionist policy. Show Answer Correct Answer: B) Industrialization. 5. The seller must deliver the goods and pay the costs at their own factory. Until the goods are placed on the side of the ship at the port of origin as specified with the buyer, which form is INCOTERM? A) FAS. B) FOB. C) CPT. D) DDP. Show Answer Correct Answer: A) FAS. 6. Preferential Trade Agreement is just the need for goods to trade only compared to the tariff setting for member countries, do you agree? A) Yes. B) No. Show Answer Correct Answer: B) No. 7. Comparative advantage is used to explain the relationship between specialization and international trade. A) True. B) False. Show Answer Correct Answer: A) True. 8. Here are the effects on import quota except A) Domestic consumers are worse off. B) Domestic producers are better off. C) The government either gains or loses. D) Increased inefficiency in production. E) Domestic income distribution worsens. Show Answer Correct Answer: C) The government either gains or loses. 9. The theory of ..... maintains that a country's wealth is measured by its holdings of gold and silver. A) Mercantilism. B) Neomercantilism. C) Competitive advantage. D) Comparative advantage. Show Answer Correct Answer: A) Mercantilism. 10. Assume the United States has an absolute advantage over Singapore in the production of all goods. Which statement about trade possibilities between the two countries is correct? A) The terms of trade will be based on the United States absolute advantage. B) They can still arrange a beneficial trade if each one focuses production on a good in which they have a comparative advantage. C) Since the United States has an absolute advantage in all goods, it is impossible to reach a trade agreement. D) Singapore could benefit from a trade with the United States, but the United States would not benefit. Show Answer Correct Answer: B) They can still arrange a beneficial trade if each one focuses production on a good in which they have a comparative advantage. 11. Which cannot measure economic globalization A) Technology development. B) Movement of goods and service. C) Increased employment. D) National trade. E) Movement of capital as direct investment. Show Answer Correct Answer: D) National trade. 12. When Chile decided to ban the import of all apples coming into their country from the United States, this is an example of which trade barrier? A) Embargo. B) Quota. C) Health and Safety Standard. D) Subsidy. Show Answer Correct Answer: A) Embargo. 13. Trade Policy is formed to protect and promote locally produced goods. A) Yes. B) No. Show Answer Correct Answer: A) Yes. 14. What action would the Federal Reserve take to control inflation? A) Buy government securities. B) Decrease the required reserve ratio. C) Increase taxes. D) Increase the discount rate. Show Answer Correct Answer: D) Increase the discount rate. 15. Which is not related to international trade? A) Tran Sea Transport Company transports goods of Samui Hotel Company from Khanom Pier to their hotel. B) Mrs. B claims an exemption from liability under the Carriage of Goods by Sea Act against Company A in order to limit her liability from her causing damage to the goods during the delay in transporting the goods. C) Mr. Xi agreed to purchase goods from China with DAP delivery conditions. D) Mr. A agrees to sell pork and basil fried rice to Mr. C in the Chor Pradu food center. Show Answer Correct Answer: D) Mr. A agrees to sell pork and basil fried rice to Mr. C in the Chor Pradu food center. 16. Which factor is the basis for the theory of comparative advantage? A) Capital. B) Investment. C) Specialization. D) Rationing. Show Answer Correct Answer: C) Specialization. 17. The French government gives french wheat farmers money for every acre of wheat that they grow. Which type of trade barrier is this? A) Tariff. B) Subsidy. C) Embargo. D) Tax. Show Answer Correct Answer: B) Subsidy. 18. Which one of the following is an embargo? A) A way of raising revenue for the government. B) When a prohibition of trade is enacted. C) When a tax is placed on an imported good to offset an illegal practice. D) When a number limit is placed on an imported good. Show Answer Correct Answer: B) When a prohibition of trade is enacted. 19. What is the primary purpose of the European Union (EU) in the context of international integration? A) To serve as a military alliance. B) To facilitate political and economic integration in Europe. C) To promote environmental conservation. D) To establish a global currency. Show Answer Correct Answer: B) To facilitate political and economic integration in Europe. 20. Which policy would best enable a government to encourage greater specialisation in the use of its country's resources? A encouraging diversification in industry B protecting small businesses C reducing tariffs on imports into its country D subsidising job creation in rural areas A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. ← 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