This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 59 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 59 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is NOT referred as a characteristic of international trade? A) Governmental Control. B) Foreign Currency. C) Comparative advantage. D) Separation of Buyers and Producers. Show Answer Correct Answer: C) Comparative advantage. 2. Formula of Intra-Industry Trade is ..... A) T = 1 + (|X-M|/X+M). B) T = 1-(|X+M|/X-M). C) T = 1 + (|X+M|/X-M). D) T = 1-(|X-M|/X+M). Show Answer Correct Answer: D) T = 1-(|X-M|/X+M). 3. Government makes payments to local suppliers to reduce the production costs of the supplier. A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: C) Subsidy. 4. The ability of an individual or group to carry out a particular economic activity (such as making a specific product) more efficiently than another activity. A) Equilibrium. B) Comparative Advantage. C) International Trade. D) Tariff. Show Answer Correct Answer: B) Comparative Advantage. 5. Fish caught off the coast of the UK is shipped to France. A) Import. B) Export. Show Answer Correct Answer: B) Export. 6. Exchange of goods and services among the nations of the world A) Exports. B) Imports. C) Absolute advantage. D) International trade. Show Answer Correct Answer: D) International trade. 7. What is the main change brought by the RTAA(1934)? A) It granted the president agenda control over tariff setting. B) It stipulated individual tariff reduction. C) It provided adequate adjustment programs for firms and workers. D) None of above. Show Answer Correct Answer: A) It granted the president agenda control over tariff setting. 8. What is exchange rate? A) The rate at which goods are exchanged between countries. B) The rate at which a country's currency is exchanged for another country's currency. C) The rate at which a country's imports and exports are balanced. D) The rate at which a country's financial assets are exchanged. Show Answer Correct Answer: B) The rate at which a country's currency is exchanged for another country's currency. 9. ..... suggest that FDI will be more likely to occur when transaction costs with a second firm are high. A) Eclectic theory. B) Internalization theory. C) Ownership advantage theory. D) National competitive advantage. Show Answer Correct Answer: B) Internalization theory. 10. Which of the following is NOT an argument for free trade?Increases competition, allows domestic goods to be sold all over the world, allows country to expose comparative advantage through specialization. A) Increase competition. B) Allow domestic goods to be sold worldwide. C) Allow countries to specialize through comparative advantage. D) Imposing subsidies to protect domestic interest. Show Answer Correct Answer: D) Imposing subsidies to protect domestic interest. 11. Specified area where raw materials and finished goods may be landed, stored, displayed, assembled, reconfigured and re-exported into customs territory and foreign points free of customs duties A) Free Trade Zone. B) Tariff. C) Free Trade. D) Trade Failure. Show Answer Correct Answer: A) Free Trade Zone. 12. Mercantilism was based on the idea that a nation's wealth and power were best served by reducing import. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 13. The record of all transactions between individuals, firms and governments of one country with those in all other countries in a given year, expressed in monetary terms. A) Balance of Trade. B) Balance of Payments. C) Trade Surplus. D) Trade Failure. Show Answer Correct Answer: B) Balance of Payments. 14. In ....., the GATT became the World Trade Organization (WTO), which now has more than 140 member countries. A) 1947. B) 1995. C) 1952. D) 1946. Show Answer Correct Answer: B) 1995. 15. Which of these are not trading blocs A) Free trade area. B) Customs union. C) Common market. D) Subsidiaries. Show Answer Correct Answer: D) Subsidiaries. 16. When a country allows for trade and becomes an exporter of the good, which of the following would NOT be true? A) The price paid by the domestic consumer of the good increases. B) The price received by the domestic producers of the good increases. C) The losses of domestic consumers exceed the gains of domestic producers. D) The gains of domestic producers exceed the losses of domestic consumers. Show Answer Correct Answer: C) The losses of domestic consumers exceed the gains of domestic producers. 17. TRIPS regulations oblige WTO members to all of the following EXCEPT: A) Grant and enforce patents lasting for at least 20 years. B) Comply with the rules within 5 year for rich countries. C) Grant and enforce copyrights lasting for 50 years. D) Comply with the rules within 10 year for poorest countries. Show Answer Correct Answer: B) Comply with the rules within 5 year for rich countries. 18. The value of one currency in terms of another. A) Exchange Rate. B) Term Currency. C) Currency Term. D) None of above. Show Answer Correct Answer: A) Exchange Rate. 19. ..... permits the international firms to get the goods produced on a large scale without requiring investment in setting up production facilities. A) Wholly owned subsidiary. B) Joint venture. C) Contract manufacturing. D) Franchising. Show Answer Correct Answer: C) Contract manufacturing. 20. Which countries are members of NAFTA? A) America, Mexico, and Europe. B) America, Soviet Union, and Mexico. C) Aztecs, Mayans, and Incans. D) America, Mexico, and Canada. Show Answer Correct Answer: D) America, Mexico, and Canada. ← 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