This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 62 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 62 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A limit on either the quantity or the monetary value of a product that may be imported. A) Imports. B) Joint venture. C) Free trade. D) Quota. Show Answer Correct Answer: D) Quota. 2. Three most common forms of Protectionism? A) Tariffs, Quotas, Non-tariff barriers. B) Tariff, Subsidies, Non-tariff barriers. C) Quotas, Subsidies, Non-tariff barriers. D) Tariff, Subsidies, Quotas. Show Answer Correct Answer: D) Tariff, Subsidies, Quotas. 3. In which of the following, the firms do not have much contact with the foreign markets? A) Joint venture. B) Wholly owned subsidiary. C) Export / import. D) None of these. Show Answer Correct Answer: C) Export / import. 4. Definition of Make compromises A) Careful about what you say so that you don't upset or embarrass anyone. B) Let the other person have something in order to achieve an agreement. C) Pretend something in order to achieve what you want. D) Accept less than what you originally wanted in order to reach an agreement. Show Answer Correct Answer: D) Accept less than what you originally wanted in order to reach an agreement. 5. How do international trade fairs and exhibitions contribute to the global economy? A) International trade fairs and exhibitions contribute to the global economy by facilitating international business transactions, promoting economic growth, and fostering innovation and collaboration among global businesses. B) International trade fairs and exhibitions only benefit local businesses. C) International trade fairs and exhibitions have no impact on the global economy. D) International trade fairs and exhibitions lead to economic decline. Show Answer Correct Answer: A) International trade fairs and exhibitions contribute to the global economy by facilitating international business transactions, promoting economic growth, and fostering innovation and collaboration among global businesses. 6. To sell readymade garments for children, men, women, etc is the example of A) Single product shop. B) Single line shop. C) General store. D) Departmental store. Show Answer Correct Answer: B) Single line shop. 7. Heckscher-Ohlin Theory advocated government intervention by recommending policies to maximize exports and minimize imports. A) True. B) False. Show Answer Correct Answer: B) False. 8. Which factor would cause a country's exchange rate to fall? A demand for imports increase B domestic interest rates rise C domestic savings increase D more tourists visit the country A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 9. Methods used by a business to for finance International Trade include ..... A) Cash. B) Personal cheques. C) Letter of credit. D) Credit card. Show Answer Correct Answer: C) Letter of credit. 10. Which of the following is TRUE about the Risk of fake transfers and commercial fraud due to investment diversion? A) The slowdown in the global economy. B) Limit economic growth. C) Affecting the psychology of consumers. D) All of above. E) None of above. Show Answer Correct Answer: A) The slowdown in the global economy. 11. T or F:International trade did not improve the economy A) True. B) False. Show Answer Correct Answer: B) False. 12. If the government imposes a tariff on imports of cheese, the price and quantity of imported cheese will most likely change in which of the following ways? A) Price:Decrease, Quantity:Decrease. B) Price:Decrease, Quantity:Increase. C) Price:Increase, Quantity:Not change. D) Price:Increase, Quantity:Decrease. E) Price:Increase, Quantity:Increase. Show Answer Correct Answer: D) Price:Increase, Quantity:Decrease. 13. Hiring a foreign manufacturer to make your products according to your specifications. A) Joint venture. B) Contract manufacturing. C) Infrastructure. D) Mini-national. Show Answer Correct Answer: B) Contract manufacturing. 14. Mercantilism, generally shares with ..... the belief that each state must protect its own interests at the expense of others A) Realism. B) Idealism. C) Liberalism. D) None of above. Show Answer Correct Answer: A) Realism. 15. Is when a person, country, or region works on making one part of an item or a specific good. A) Import. B) Export. C) Specialization. D) Trade. Show Answer Correct Answer: C) Specialization. 16. "Retaliatory action" taken by a WTO member country due to experiencing losses due to the rules or policies of another WTO member country is called..... A) Infiltration. B) Compensation. C) Retribution. D) Retaliation. Show Answer Correct Answer: D) Retaliation. 17. World Trade Organization A) International organization overseeing world trade; ensures world trade occurs in a smooth and free-flowing manner with little disruption. B) Trade between different regions or countries. C) Trade within the same region or country. D) Method used to stop the shipment of certain products to and from a particular country for economic or political reasons. Show Answer Correct Answer: A) International organization overseeing world trade; ensures world trade occurs in a smooth and free-flowing manner with little disruption. 18. Which of the following is an example of a non-tariff trade barrier? A) Import duty. B) Quota. C) Currency exchange rate. D) Intellectual property rights. Show Answer Correct Answer: B) Quota. 19. What is an example of a price amendment for international business? A) Setting a fixed price for all countries. B) Adjusting the price based on local income levels. C) Not considering the purchasing power of consumers. D) Ignoring currency differences. Show Answer Correct Answer: B) Adjusting the price based on local income levels. 20. Expansionary Fiscal policy would most likely cause A) A budget deficit, a decrease in real interest rates, an increase in investments, decrease in net exports. B) A budget deficit, an increase in real interest rates, decrease in investments, and a decrease in net exports. C) A budget surplus, a decrease in real interest rates, an increase in investments and a decrease in net exports. D) A budget surplus, a decrease in real interest rates, an increase in investments and a increase in net exports. E) A budget deficit, a decrease in real interest rates, an increase in investments, and a decrease in net exports. Show Answer Correct Answer: B) A budget deficit, an increase in real interest rates, decrease in investments, and a decrease in net exports. ← 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