This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The BSP defines Open Account as a mode of payment wherein payment is made at least how many calendar days after transport document date? A) 21. B) 25. C) 29. D) 30. Show Answer Correct Answer: D) 30. 2. The product life cycle theory suggests that over time, demand for the new product would grow in other advanced countries making it worthwhile for foreign producers to begin producing for their home markets. A) True. B) False. Show Answer Correct Answer: A) True. 3. Bilateral Payment Agreement (BPA) is an agreement between all the central banks of the developing countries. Which statement is FALSE? A) BPA is to promote trade between Malaysia and the country concerned. B) The payment in BPA is protected and safe, guaranteed by respective Central Banks. C) The risk of BPA is that the seller might not obtain the payment from the buyer. D) BPA is to encourage banking institutions to finance such trade. Show Answer Correct Answer: C) The risk of BPA is that the seller might not obtain the payment from the buyer. 4. Which of the following is not true about 'Balance of Trade'? A) Developing countries have negative balance of trade. B) Developed countries have negative balance of trade. C) It refers to the difference between the value of imports and the value of exports. D) Balance of trade has no relation with developing and developed countries. Show Answer Correct Answer: B) Developed countries have negative balance of trade. 5. ANti-dumping rule is one of the way of government to intervene in trade. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 6. GATT is A) General Agreement for Tariffs and Trade. B) General Association for Tariffs and Trade. C) German Agreement for Trade and Tariffs. D) General Americans for Trade and Tariffs. Show Answer Correct Answer: A) General Agreement for Tariffs and Trade. 7. In 2019 Nigeria exported $ 34 billion worth of goods, but imported $ 46 billion worth of goods. This is called a ..... A) Trade fails. B) Trade surplus. C) Trade balance. D) None of above. Show Answer Correct Answer: A) Trade fails. 8. The type of intermediary is..... A) Distribution channels and physical distribution. B) Digital and non-digital media. C) Wholesalers and retailers. D) Direct sales and trade intermediaries. Show Answer Correct Answer: C) Wholesalers and retailers. 9. Rates apply to activities: A) Export only. B) Import only. C) Export and import. D) All wrong. Show Answer Correct Answer: C) Export and import. 10. It is one of the reasons why firms expand internationally that used aggressive tactics like seizing market opportunities ..... A) DEFENSIVE MOTIVES. B) OFFENSIVE MOTIVES. C) MARKET MOTIVES. D) ECONOMIC MOTIVES. Show Answer Correct Answer: B) OFFENSIVE MOTIVES. 11. The lower the intensity of competitive pressure, the higher the price charged relative to the cost of product. A) True. B) False. Show Answer Correct Answer: B) False. 12. A tariff is a tax on what? A) Imported goods. B) Imports and exports. C) Agricultural products only. D) None of above. Show Answer Correct Answer: A) Imported goods. 13. It is largely theoretical policy under which governments impose absolutely no tariffs, taxes, or duties on imports or quotas on exports. A) Protectionism. B) Mercantilism. C) Voluntary Export. D) Free Trade. Show Answer Correct Answer: D) Free Trade. 14. A disadvantage of a nation having a merchandise deficit is that this deficit may require A) Buying more assets. B) Borrowing money from the rest of the world. C) Increasing the price of imports. D) Decreasing the price of domestic goods. Show Answer Correct Answer: B) Borrowing money from the rest of the world. 15. What gave the silk Road its name? A) Because China sent large amounts of silk along this road. B) Through people connecting with each other. C) Because it is made of many routes. D) Because they carried precious goods and the roads weren't safe. E) Because the roads were dangerous and nature was hard. Show Answer Correct Answer: A) Because China sent large amounts of silk along this road. 16. Barrier to trade that places a tax on imports A) Quotas. B) Standards/regulations. C) Tariff. D) Embargo. Show Answer Correct Answer: C) Tariff. 17. Which of the following is an example of an imported product? A) Apples grown in your own backyard. B) A toy made in a factory in another country. C) A handmade necklace bought from a local artisan. D) None of above. Show Answer Correct Answer: B) A toy made in a factory in another country. 18. Why do governments establish international trade policies and agreements? A) To restrict domestic industries. B) To protect domestic industries and promote exports. C) To discourage exports. D) To promote unfair competition. Show Answer Correct Answer: B) To protect domestic industries and promote exports. 19. Regional Integration is the agreement among nations who belongs in the same region or area to reduce or eliminate trade barriers, increase market size aggregate demand for goods and services, and economic activity. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. Why do governments use tariffs? A) To protect domestic industries and jobs. B) To raise revenue. C) Both 1 & 2. D) To increase exports. Show Answer Correct Answer: C) Both 1 & 2. ← 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