This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 47 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which theory argues that each country should produce and export products that intensively use relatively abundant factors of production, and import goods that intensively use relatively scarce factors of production? A) Early Trade Theory. B) Free Trade Theory. C) International Product Life Cycle Theory. D) Factor Endowments Theory. Show Answer Correct Answer: D) Factor Endowments Theory. 2. United States is considered the ..... largest export A) First Place. B) Second Place. C) Third Place. D) Fourth Place. Show Answer Correct Answer: B) Second Place. 3. What is a benefit of international trade? A) It allows countries to more efficiently use their resources and leads to a higher standard of living. B) Companies gain access to more markets leading to more profits, which leads to reinvestment back home. C) Consumers gain access to a greater variety goods. D) All of the above. Show Answer Correct Answer: D) All of the above. 4. If the U.S. dollar depreciates relative to another currency, which of the following is most likely to occur? A) U.S. exports will increase to that country. B) U.S. government will increase the tariff on goods from that country. C) U.S. trade deficit will become larger to that country. D) U.S. tourists will visit that country in greater numbers. Show Answer Correct Answer: A) U.S. exports will increase to that country. 5. A country has a favourable balance of trade when A) It sells more than it buys. B) It buys more than it sells. C) Imported goods are cheaper. D) There are no restrictions to trade. Show Answer Correct Answer: A) It sells more than it buys. 6. Increases government funds A) Global Tariff. B) Local Tariff. C) Revenue Tariff. D) State Tariff. Show Answer Correct Answer: C) Revenue Tariff. 7. To capitalize on distinctive resources or capabilities already developed at home what aspect of why firms expand internationally best describes this statement? ..... A) ECONOMIC MOTIVES. B) STRATEGIC MOTIVES. C) MARKET MOTIVES. D) DEFENSIVE MOTIVES. Show Answer Correct Answer: B) STRATEGIC MOTIVES. 8. It is a basic economic concept involving the buying and selling of goods and services. A) Forex. B) Trading. C) Investing. D) None of above. Show Answer Correct Answer: B) Trading. 9. Travel Associations that are concerned with the promotion and development of tourism globally is the rapid expansion in tourism activity globally was responsible for creating a need for world bodies to deal with tourism issues at the government level. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 10. Seen from a broader perspective, political risk could be divided into differentunderlying causes, such as:except A) Political stability. B) Social stability. C) Economic stability. D) Financial stability. Show Answer Correct Answer: D) Financial stability. 11. Which union promotes peace through loans, education and other forms of aid? A) AND. B) WTO. C) NAFTA. D) EU. Show Answer Correct Answer: A) AND. 12. Example of visible trade A) Information technology services provided to foreign counties. B) Textiles export. C) Paid foreigners services like new technology training. D) Received money for trans national services. Show Answer Correct Answer: B) Textiles export. 13. Which of the following is the purpose of a trade bloc? A) To increase the number of trade barriers a country has. B) To become a team and fight wars on trade. C) To reduce/end trade barriers between member countries. D) To stop trade all together. Show Answer Correct Answer: C) To reduce/end trade barriers between member countries. 14. How does a strong pound affect exports? A) They are cheaper. B) They are dearer. C) They stay the same. D) None of above. Show Answer Correct Answer: B) They are dearer. 15. What is an advantage of specialisation at a national level? A an increase in economies of scale B an increase in social cost C an increase in unemployment D an over-exploitation of resources A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 16. After World War II, advance countries, agreed to lower tariffs to promote free flow of goods through Global Agreement on Trade and Tariff (GATT). A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 17. Which of the following is NOT a legitimate argument for protectionism? A) Infant Industry Argument. B) Protect Domestic Jobs. C) National Security. D) America. Show Answer Correct Answer: D) America. 18. Why do many governments in countries with market economies control or outlaw monopolies? A) Monopolies are always run by selfish people who defraud consumers. B) Monopolies often become more powerful than governments. C) Monopolies can make excessive profits by overcharging consumers. D) Monopolies are too competitive and sell their goods and services for extremely low prices. Show Answer Correct Answer: A) Monopolies are always run by selfish people who defraud consumers. 19. These are government policies that restrict international trade to help domestic industries. A) Protectionism. B) Liberalism. C) Loudness. D) Perestroika. Show Answer Correct Answer: A) Protectionism. 20. Which is NOT a step in the exporting process? A) Identify potential customers and make sales contacts. B) Search for suppliers. C) Deliver the goods or services. D) Assess demand. Show Answer Correct Answer: B) Search for suppliers. ← 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