This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Deals with the rules of trade between nations, reduce trade barriers such as tariffs and quotas A) World Bank. B) World Trade Organization. C) International Monetary Fund. D) None of above. Show Answer Correct Answer: B) World Trade Organization. 2. The first fur products are made from cat's fur. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 3. Trade barrier which imposes extra cost on imports to protect local businesses A) Protectionism. B) Flexible Exchange Rate. C) Fixed Exchange Rate. D) Exchange Control. Show Answer Correct Answer: A) Protectionism. 4. What is the most likely effect of a United States import quota on foreign cars? A) The price of domestic cars would decrease because of improved production methods. B) Foreign automobile manufacturers would be allowed to sell more cars in the United States. C) Domestic automobile manufacturers would sell more cars in markets in the United States. D) The price of cars would increase in foreign countries because of the trade restrictions. Show Answer Correct Answer: C) Domestic automobile manufacturers would sell more cars in markets in the United States. 5. Payments or other support like tax breaks from governments to businesses A) Subsidy. B) Tariff. C) Embargo. D) Standard. E) Quota. Show Answer Correct Answer: A) Subsidy. 6. What is the basis of trade? A) Interdependence. B) Specialization. C) Comparative advantage. D) Absolute advantage. Show Answer Correct Answer: B) Specialization. 7. The activity of trying to persuade someone in authority, usually an elected memberof a government or an organization, to support laws or rules that give your institution or industry an advantage: A) Lobbying. B) Merchandising. C) Partnership. D) Profits. Show Answer Correct Answer: A) Lobbying. 8. How many Starbucks stores were opened across Australia by the year 2000? A) 69. B) 55. C) 87. D) 13. Show Answer Correct Answer: C) 87. 9. The purpose of dumping is A) To gain a high market share. B) To lower the wages of the employees. C) To improve the quality of the good. D) To get rid of unwanted products for a cheap price. Show Answer Correct Answer: A) To gain a high market share. 10. Imports increase and are cheaper for consumers to buy. A) Appreciation. B) Depreciation. Show Answer Correct Answer: A) Appreciation. 11. Tools, equipment, or other manufactured goods used to produce other goods and services are known as: A) Consumer Goods. B) Capital Goods. C) Services. D) Specialized Goods. Show Answer Correct Answer: B) Capital Goods. 12. Firms that establish a first-mover advantage may dominate global trade in that product. A) True. B) False. Show Answer Correct Answer: A) True. 13. International trade takes place because of: A) Governments' desire to protect their industries. B) Inequalities in factor endowments between nations. C) Differences in price levels in various countries. D) Inequalities in the terms of trade. Show Answer Correct Answer: B) Inequalities in factor endowments between nations. 14. An advantage of international trade:Countries can't produce all the things they want or need because resources are unevenly distributed A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 15. Check in A) (phrasal verb) to collect someone or something, to get something. B) (phrasal verb) to arrive and register at a hotel or airport. C) (phrasal verb) to stay somewhere for a short time during a long journey. D) (phrasal verb) to depend on. Show Answer Correct Answer: B) (phrasal verb) to arrive and register at a hotel or airport. 16. Which is NOT a challenge of multinational companies A) Sociocultural. B) Economy. C) Politics. D) Management control. Show Answer Correct Answer: C) Politics. 17. Foreign exchange market is necessary in international trade because A) Each country has its own monetary system. B) The United States went off the gold standard. C) International trade is conducted in foreign markets. D) It prevents a devaluation of the currency. Show Answer Correct Answer: A) Each country has its own monetary system. 18. Elijah's family exports tea, Hannah's family sells candles, and Benjamin's family trades crafts. Which is an example of international trade? A) Elijah's family exporting tea to other countries. B) Hannah's family selling homemade candles within their country. C) Benjamin's family trading homemade crafts with their neighbors. D) The exchange of goods and services within a company. Show Answer Correct Answer: A) Elijah's family exporting tea to other countries. 19. What is a synonym for "goods" ? A) Welfare. B) Possessions. C) Merchandise. D) None of above. Show Answer Correct Answer: C) Merchandise. 20. Counter purchase denotes a whole range of barter like agreements; its principle is to trade goods and services for other goods and services when they cannot be traded for money. A) True. B) False. Show Answer Correct Answer: B) False. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 6International Trade Quiz 7International Trade Quiz 8International Trade Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books