This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What would not be included in the current account of the balance of payments? A) Dividends earned from a firm in another country. B) Imports of TVs from another country. C) Purchase of a house in another country. D) Rents paid to owners of land in another country. Show Answer Correct Answer: C) Purchase of a house in another country. 2. In the US, we freely choose how we are to spend our money. Choices consumers determine which products succeed or fail in the marketplace. Is known as what? A) Freedom of Enterprise. B) Freedom of Choice. C) Freedom of Individualism. D) None of above. Show Answer Correct Answer: B) Freedom of Choice. 3. Different countries produce various goods and services inefficiently than others when they have an absolute advantage. A) True. B) False. Show Answer Correct Answer: B) False. 4. The aim of WTO is A) Money transfer from developed to developing countries. B) Globalization of transport. C) Liberalization of international trade. D) Free movements of travelers. Show Answer Correct Answer: C) Liberalization of international trade. 5. What document can be used as a document of title in international trade? A) A Bill of lading. B) B Bill of exchange. C) C Certificate of origin. D) D Documentary credit. Show Answer Correct Answer: A) A Bill of lading. 6. Which of the following cannot be traded internationally? A) Auto Repair. B) Cement. C) Sand. D) None. Show Answer Correct Answer: A) Auto Repair. 7. Ethical strategy are the accepted principles of right or wrong governing the conduct of business people. A) True. B) False. Show Answer Correct Answer: B) False. 8. Limit of the amount (quantity) of a good that can be imported is called a(n): A) Subsidy. B) Quota. C) Exports. D) Appreciation. Show Answer Correct Answer: B) Quota. 9. U. S. has absolute advantage over Guam in all goods. Which trade possibility is true? A) The terms of trade will be based on the United States' absolute advantage. B) Since U.S. has absolute advantage in all goods, it's unwise to trade. C) They will trade if each focuses on a good which they have comparative advantage. D) Guam could benefit from a trade with the U.S. but the US would not benefit. Show Answer Correct Answer: C) They will trade if each focuses on a good which they have comparative advantage. 10. Selling goods to another countries is an A) Import. B) Export. Show Answer Correct Answer: B) Export. 11. The commodities exported from India to other countries include ..... A) Petroleum crude and products. B) Base metals, electronic items, machinery, gems and jewelry, chemicals and related products. C) Agricultural products. D) Gems and jewelry, chemicals and related products, agriculture and allied products,. Show Answer Correct Answer: D) Gems and jewelry, chemicals and related products, agriculture and allied products,. 12. According to the principle of comparative advantage, on what does a country's gains from international trade depend? A) Its level of money wage rates compared to its trading partners. B) It imposing a higher level of tariffs compared to those of its trading partners. C) Its greater productive capacity in some goods compared to its trading partners. D) Its lower opportunity cost in the production of some goods compared to its trading partners. Show Answer Correct Answer: D) Its lower opportunity cost in the production of some goods compared to its trading partners. 13. It is when the country exports more goods and services than the export A) Trade explicit. B) Trade Deficit. C) Trading. D) Trading balance. Show Answer Correct Answer: B) Trade Deficit. 14. Definition of Haggling A) Careful about what you say so that you don't upset or embarrass anyone. B) A thing bought or offered for sale much more cheaply than is usual or expected. C) Pretend something in order to achieve what you want. D) Arguing to agree on the price of something. Show Answer Correct Answer: D) Arguing to agree on the price of something. 15. What is the most likely reason that countries specialize in producing some goods and services and trading for others? A) They can get more goods overall. B) They can produce more of a good than another country can. C) They make some goods more efficiently than other countries do. D) They can protect domestic industries and jobs. Show Answer Correct Answer: A) They can get more goods overall. 16. What is the main purpose of Mexican free trade agreements? A) To promote fair competition. B) To eliminate barriers to trade. C) To increase investment opportunities. D) All of the above. Show Answer Correct Answer: D) All of the above. 17. Which of the following is NOT a responsibility of a Mexican customs broker? A) Facilitating the import and export of goods between Mexico and other countries. B) Ensuring compliance with Mexican customs regulations and requirements. C) Handling customs paperwork and documentation. D) Providing financial services for international trade transactions. Show Answer Correct Answer: D) Providing financial services for international trade transactions. 18. One disadvantage of a fixed exchange rate system is that A) It can lead to current account imbalances. B) The volatility of the rate is likely to be higher. C) Less control over domestic interest rates. D) Less opportunity for currency speculation. Show Answer Correct Answer: C) Less control over domestic interest rates. 19. If the United States dollar appreciates relative to the China Yuen, what is a likely outcome? A) Trade surplus in US. B) Trade deficit in China. C) Trade deficit in both. D) Trade surplus in China. Show Answer Correct Answer: D) Trade surplus in China. 20. Theory of absolute advantage was given by ..... A) Philip Kotler. B) Adam Smith. C) Peter Drucker. D) David Ricardo. Show Answer Correct Answer: B) Adam Smith. ← PreviousNext →Related QuizzesInternational Economics QuizzesEconomics QuizzesInternational Trade Quiz 1International Trade Quiz 2International Trade Quiz 3International Trade Quiz 4International Trade Quiz 5International Trade Quiz 7International Trade Quiz 8International Trade Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books