This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 55 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Exports A) Goods produced in one country, then shipped to another region or country. B) International organization overseeing world trade; ensures world trade occurs in a smooth and free-flowing manner with little disruption. C) Trade between different regions or countries. D) Trade within the same region or country. Show Answer Correct Answer: A) Goods produced in one country, then shipped to another region or country. 2. What theme of international economics is relatively a new part of international economics and, for the most part, fixed by government action rather than determined by the marketplace? A) International Trade. B) Protectionism. C) Exchange Rate Determination. D) International Policy Coordination. Show Answer Correct Answer: C) Exchange Rate Determination. 3. Where there are economies of scale, an increase in the size of the market will A) Increase the number of firms and raise the price per unit. B) Decrease the number of firms and raise the price per unit. C) Increase the number of firms and lower the price per unit. D) Decrease the number of firms and lower the price per unit. Show Answer Correct Answer: C) Increase the number of firms and lower the price per unit. 4. What theme of international economics has an associated special risk like currency fluctuations? A) The Gains from Trade. B) The Pattern of Trade. C) The Balance of Payments. D) The International Capital Market. Show Answer Correct Answer: D) The International Capital Market. 5. In order to promote trade, countries often ..... A) Restrict trade. B) Create trade barriers. C) Form trade agreements. D) All of the above. Show Answer Correct Answer: C) Form trade agreements. 6. The NT principles are regulated in the WTO agreement in..... A) Article 1 GATT-Article 15 GATS-Article 1 TRIPS. B) Article 2 GATT-Article 16 GATS-Article 2 TRIPS. C) Article 3 GATT-Article 17 GATS-Article 3 TRIPS. D) Everything is wrong. Show Answer Correct Answer: C) Article 3 GATT-Article 17 GATS-Article 3 TRIPS. 7. France imposes a limit on Avocado imports from Mexico. A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: B) Quota. 8. What is most likely to discourage international specialisation and trade for an economy? A decreasing labour supply B decreasing transport costs C increasing oil prices D increasing trade barriers A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. 9. When one country can produce a product with a lower opportunity cost than another country it is said to ..... A) Have an absolute advantage. B) Have a comparative advantage. C) Have a more efficient production possibilities curve. D) Be operating outside the production possibilities curve. Show Answer Correct Answer: B) Have a comparative advantage. 10. A joint venture does not give a firm the tight control over subsidiaries that it might need to realize experience learning curve or location economies. A) True. B) False. Show Answer Correct Answer: A) True. 11. India faced serious food shortages in 1950's and 1960's. So food grains were an important item of import. What changed this condition after 1970's? A) High Price of grains in International market. B) The success of Green revolution in India. C) Spread of epidemics. D) Decline in population. Show Answer Correct Answer: B) The success of Green revolution in India. 12. Of or belonging to a corporation, a business firm whose articles of incorporation have been approved in some state. A) Adaptation. B) Proprietary. C) Corporate. D) Free trade. Show Answer Correct Answer: C) Corporate. 13. Balance of Payments uses the ..... system of accounting. A) Single-entry. B) Double-entry. C) Cash basis. D) Accrual basis. Show Answer Correct Answer: B) Double-entry. 14. Why might Japan impose high tariffs on American automobiles imported into Japan? A) To increase U.S. sales of Japanese cars. B) To encourage American auto makers to make better cars. C) To increase imports of American cars. D) To limit competition in Japan from American cars. Show Answer Correct Answer: D) To limit competition in Japan from American cars. 15. The purpose why they create the Bretton wood system is to avoid World War 2 and depressions 2? A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 16. The difference between visible exports and visible imports is known as A) The balance of payments. B) The balance of trade. Show Answer Correct Answer: B) The balance of trade. 17. Ways that must be taken to create economic superiority include..... A) Developing the potential of various regional cultures. B) Produce products in large quantities. C) Encouraging the exploitation of natural resources. D) Producing goods that are not yet available domestically. Show Answer Correct Answer: A) Developing the potential of various regional cultures. 18. It is the exchange of goods and services between two countries. A) Export. B) International Trade. C) Import. D) Investment. Show Answer Correct Answer: B) International Trade. 19. Discuss the role of international trade in promoting peace and cooperation among nations. A) International trade can lead to conflict and competition among nations. B) International trade can only benefit one nation at the expense of others. C) International trade has no impact on fostering peace and cooperation among nations. D) International trade can promote peace and cooperation by creating economic interdependence and mutual benefits among nations. Show Answer Correct Answer: D) International trade can promote peace and cooperation by creating economic interdependence and mutual benefits among nations. 20. Which of the following can tend to favor big businesses and vested interests as they have the resources to lobby most effectively? A) Free Trade. B) Protectionist Rules. C) Competitive Market. D) Free Enterprise. Show Answer Correct Answer: B) Protectionist Rules. ← 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