This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 56 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 56 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The W T O works as: A) The referee on trade. B) The bank for countries. C) The voice of corporations. D) The association of transnational companies. Show Answer Correct Answer: A) The referee on trade. 2. The importance of trade for a nation can be measured by ..... A) Examining the amount of wealth acquired by the national government through restrictive trade policies. B) The living standards of people involved in only trade activities. C) The number of acquired territories the nation has that serves as sources of inexpensive raw materials. D) Examining the volume of its trade relative to its total output. Show Answer Correct Answer: D) Examining the volume of its trade relative to its total output. 3. GATT was established in ..... to liberalise the world from high custom tariffs and various other types of restrictions. A) 1748. B) 1848. C) 1948. D) 2008. Show Answer Correct Answer: C) 1948. 4. The proposal to conclude an insurance contract will be issued. A) The insured. B) Insurer. C) Mediator. D) Debtor. Show Answer Correct Answer: A) The insured. 5. Trade agreement which provides fair trade rules, reduction on tariffs and other trade barriers A) General Agreement on Tariffs and Trade. B) EFTA. C) Canada-European Free Trade Association. D) Trade Bloc. Show Answer Correct Answer: A) General Agreement on Tariffs and Trade. 6. In the Ricardian model, the distribution of the gains from trade depends on ..... A) The relative prices of the goods countries produce. B) A country's relative resources for producing goods. C) A country's investment in production. D) The wants and needs of a country's government. Show Answer Correct Answer: A) The relative prices of the goods countries produce. 7. Which of the following is NOT an advantage of world trade? A) Expands market. B) Creates and raises competition. C) Increases availability of natural resources. D) Eliminates local companies due to foreign competition. Show Answer Correct Answer: D) Eliminates local companies due to foreign competition. 8. The main challenges in international trade are A) Currency differences. B) High tariff restrictions. C) Huge global market demand. D) Cheap availability of technology. Show Answer Correct Answer: B) High tariff restrictions. 9. What is the term for when a firm can produce a particular good more efficiently than any other firm? A) Specialization. B) Absolute advantage. C) Comparative advantage. D) Dumping. Show Answer Correct Answer: B) Absolute advantage. 10. A ..... is another name for a "producer" . A) Seller. B) Manufacturer. C) Vendor. D) Supplier. Show Answer Correct Answer: B) Manufacturer. 11. The exchange of goods and services between countries. A) International Trade. B) Imports. C) Trading. D) Domestic Trade. Show Answer Correct Answer: A) International Trade. 12. According to him/them, a country's prosperity should be determined by the living conditions of its residents, not by the amount of gold and other precious metals it possesses. He also coined the Absolute Advantage Theory. A) Adam Smith. B) Heckscher and Ohlin. Show Answer Correct Answer: A) Adam Smith. 13. Determine which country has the comparative advantage:Cuba takes 4 hours to make a TV and 12hrs to make a salsa Mexico takes 1 hour to make a TV and 5 hours to make a salsa A) Mexico. B) Cuba. C) Both options are correct. D) None of above. Show Answer Correct Answer: A) Mexico. 14. It the activity that occurs when a company exports goods or services to consumers in another country A) Globalized. B) Globalization. C) Globalized agreements. D) International trade. Show Answer Correct Answer: B) Globalization. 15. APEC works towards a higher standard of living and higher education levels through ..... A) Agricultural growth. B) Industrial growth. C) Sustainable economic growth. D) Tourism growth. Show Answer Correct Answer: C) Sustainable economic growth. 16. Conditions governing how companies are created, organized, and managed, and the nature of domestic rivalry. A) Relating and Supporting Industries. B) Demand Condition. C) Firm Strategy, Structure, and Rivalry. D) None of the above. Show Answer Correct Answer: C) Firm Strategy, Structure, and Rivalry. 17. What is the document showing consolidated shipments from many suppliers called? A) Invoice. B) Manifest. C) Bill. D) Receipt. Show Answer Correct Answer: B) Manifest. 18. Absolute advantage occurs when states specialize in producing the goods that they produce best and trade for goods that other states are better at producing. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. Customs A) Tariff. B) Tariff. C) Custom. D) Customs. Show Answer Correct Answer: D) Customs. 20. What is the term for when a company from one country invests in a completely new business in a host country? A) Greenfield investment. B) Foreign direct investment. C) Joint venture. D) Merge. Show Answer Correct Answer: A) Greenfield investment. ← 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