This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 46 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. According to Strategic Trade Policy, many developing countries have a potential comparative advantage in manufacturing, but new manufacturing industries cannot initially compete with established industries in developed countries. A) True. B) False. Show Answer Correct Answer: B) False. 2. Which theory listed below is also called the Heckscher-Ohlin theory? A) Relative advantage. B) Comparative advantage. C) Relative factor endowments. D) Specialization of countries. Show Answer Correct Answer: C) Relative factor endowments. 3. One of Indonesia's export commodities produced from industrial businesses is..... A) Plywood. B) Coal. C) Rubber latex. D) Rattan. Show Answer Correct Answer: A) Plywood. 4. Intra-industry trade refers to while re-export refers to A) Import and then export of the same good, (2) Import and export of the same category of goods. B) Firms in the same industry trading with one another, (2) Import and export of the same category of goods. C) Firms in the same industry trading with one another, (2) Import and then export of the same good. D) Import and export of the same category of goods, (2) Import and then export of the same good. Show Answer Correct Answer: D) Import and export of the same category of goods, (2) Import and then export of the same good. 5. In absolute advantage theory, with specialization, total world output will ..... A) Increase. B) Decrease. C) Remain unchanged. D) Fluctuate. Show Answer Correct Answer: A) Increase. 6. International trade is also a branch of ..... A) Economics. B) Economical. C) Economic. D) None of above. Show Answer Correct Answer: A) Economics. 7. From a macroeconomic perspective, if GDP economic indicators show a decline of 10% or more in a single year, then which of the following outcomes is most likely to result? A) Deep economic recession. B) Influx of foreign capital. C) Lessening of foreign aid. D) Merchandise trade surplus. Show Answer Correct Answer: A) Deep economic recession. 8. What is the term for a multinational corporation that makes, markets, and services products in different countries? A) Domestic corporation. B) Transnational corporation. C) International corporation. D) Global corporation. Show Answer Correct Answer: B) Transnational corporation. 9. The following are shipping documents required for import-export custom clearance activities, except..... A) B/L. B) EIR. C) COO. D) P/L. Show Answer Correct Answer: B) EIR. 10. International trade tends to encourage companies to be more competitive, thus forcing prices down and increasing quality A) True. B) False. Show Answer Correct Answer: A) True. 11. A nation's position in factors of production can lead to competitive advantage A) True. B) False. Show Answer Correct Answer: A) True. 12. What is the primary purpose of a Protective Tariff A) To generate government revenue. B) To promote international cooperation. C) To shield domestic industries. D) To encourage Free Trade. Show Answer Correct Answer: C) To shield domestic industries. 13. TCO is the purchase price minus hidden costs (all cost elements of the product) A) Correct. B) Salah. Show Answer Correct Answer: B) Salah. 14. Resources available = 200 units for each country Production in GhanaCocoa = 10 tonsRice = 5 tons Production in South KoreaCocoa = 2.5 tonsRice = 10 tons Question:South Korea has the absolute advantage in producing which product? A) Cocoa. B) Rice. Show Answer Correct Answer: B) Rice. 15. A tax of 20 cents per unit of imported garlic is an example of a(n) A) Specific tariff+. B) To the value of the tariff. C) Nominal tariff. D) Effective protection tariff. Show Answer Correct Answer: A) Specific tariff+. 16. (a) kilometers of undersea cables carry the world's emails, searches, and tweets, facilitating global connectivity. A) 1, 000. B) 10, 000. C) 100, 000. D) A 1 million. Show Answer Correct Answer: D) A 1 million. 17. If a Canadian were visiting family in the United States, he/she would need ..... A) A translator. B) A map. C) To cross the Canadian Shield. D) To exchange currencies. Show Answer Correct Answer: D) To exchange currencies. 18. World Trade Organisation (WTO) was established in A) 1996. B) 1995. Show Answer Correct Answer: B) 1995. 19. General Agreement on Tariffs and Trade is a precursor of A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) European Union. Show Answer Correct Answer: B) World Trade Organization. 20. According to the documentary collection, what are the role of banks? A) (A) Money transfer. B) (B) Document handling. C) (C) Payment guarantee. D) Only (A) & (B). E) Only (A), (B) & (C). Show Answer Correct Answer: D) Only (A) & (B). ← 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