This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 60 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 60 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What can be imposed to reduce imports and protect domestic industries? A) Subsidies and tax breaks. B) Tariffs and quotas. C) Deregulation and free trade agreements. D) Currency devaluation. Show Answer Correct Answer: B) Tariffs and quotas. 2. What is the term for buying goods or services from abroad? A) Import. B) Export. C) Domestic. D) Manufacture. Show Answer Correct Answer: A) Import. 3. Why the Silk Road described as a "network" ? 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: C) Because it is made of many routes. 4. What is the term for when two companies join together for mutual gain in a collaborative business venture they own jointly? A) Acquisition. B) Merger. C) Joint venture. D) Merge. Show Answer Correct Answer: C) Joint venture. 5. Goods produced in one country, then shipped to another region or country A) Imports. B) Exports. C) Tariff. D) Embargo. Show Answer Correct Answer: B) Exports. 6. What is the World Bank Group's main goal? A) To promote business. B) To help countries import and export goods. C) To keep countries from arguing over goods and services. D) To eradicate poverty. Show Answer Correct Answer: D) To eradicate poverty. 7. Taxes on the import or export of goods from a country A) Embargo. B) Tariff. Show Answer Correct Answer: B) Tariff. 8. When two countries engaged in free trade benefit, this means that everyone in both countries benefits. A) True. B) False. Show Answer Correct Answer: B) False. 9. A tax on imported goods designed to protect domestic producers from foreign competition; a type of trade barrier. A) Protective Tariff. B) Import Quota. C) Trade Embargo. D) VER. Show Answer Correct Answer: A) Protective Tariff. 10. Which countries are most directly affected by NAFTA? A) The United States, Canada, and Mexico. B) Members of the World Trade Organization. C) The United Kingdom, France, and Germany. D) All of the most favored nations (MFNs). Show Answer Correct Answer: A) The United States, Canada, and Mexico. 11. The total market value of all final goods or services produced in a year. A) GDP. B) GDP Per Capita. C) Specialization. D) Export. Show Answer Correct Answer: A) GDP. 12. What is the term for a transaction in which one company buys another company? A) Joint venture. B) Acquisition. C) Merger. D) Merge. Show Answer Correct Answer: B) Acquisition. 13. Nation 1 is K-abundance and Nation 2 is L-abundance A) True. B) False. Show Answer Correct Answer: B) False. 14. The table below shows the production alternatives of Country A and Country B for producing computers and cars with equal amounts of resources that are fully and efficiently employed.Country ..... Computers ..... CarsA ..... $\rightarrow$24 ..... $\rightarrow$12B ..... $\rightarrow$ 45 ..... $\rightarrow$ 15 A) Country A has an absolute and comparativeadvantage in the production of computers. B) Country B has an absolute and comparativeadvantage in the production of computers. C) Country B should import computers andexport cars. D) Since Country B has an absolute advantagein the production of both goods, it will nottrade with Country A. E) Neither country can benefit from trade. Show Answer Correct Answer: B) Country B has an absolute and comparativeadvantage in the production of computers. 15. If nations limit trade of clothing who will benefit? A) Domestic Consumers of clothing. B) Domestic producers of clothing. C) Foreign Producers of clothing. D) Department stores who sell clothing. Show Answer Correct Answer: B) Domestic producers of clothing. 16. When did Vietnam join WTO? A) 1 January 2007. B) 11 January 2007. C) 1 January 2008. D) 11 January 2008. Show Answer Correct Answer: B) 11 January 2007. 17. A person or organization that brings goods or services into a country from abroad for sale. A) Exporter. B) Partner. C) Customer. D) Importer. Show Answer Correct Answer: D) Importer. 18. Exports cause money to ..... A) Leave Ireland. B) Enter Ireland. Show Answer Correct Answer: B) Enter Ireland. 19. The price of one nation's currency relative to another's A) Exchange rate. B) Comparative advantage. C) Absolute advantage. D) Currency theory. Show Answer Correct Answer: A) Exchange rate. 20. Gross National Product (GNP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. A) True. B) False. Show Answer Correct Answer: B) False. ← 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