This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 63 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What did the Marshall Plan help form? A) Trade sanctions. B) Executive agreements. C) Foreign aid. D) Embargoes. Show Answer Correct Answer: C) Foreign aid. 2. Before the cars transported from Canada reach Mexico, they were stored in a bond warehouse in the US. This is an example of ..... A) Re-exports. B) Imports. C) Border gate transfers of goods. D) On-the-spot imports. Show Answer Correct Answer: C) Border gate transfers of goods. 3. What is the purpose of WIPO Madrid? A) WIPO Madrid is a system for international registration of patents. B) WIPO Madrid is a system for international registration of copyrights. C) WIPO Madrid is a system for international registration of domain names. D) WIPO Madrid is a system for international registration of trademarks. Show Answer Correct Answer: D) WIPO Madrid is a system for international registration of trademarks. 4. Which term describes the free movement of goods, services, capital, and labor across national borders? A) Protectionism. B) Outsourcing. C) Globalization. D) Localization. Show Answer Correct Answer: C) Globalization. 5. How do trade deficits and surpluses impact a country's economy? A) Trade deficits have no impact on a country's economy. B) Trade deficits can lead to increased foreign debt and decreased domestic production, while trade surpluses can lead to increased domestic production and potential currency appreciation. C) Trade surpluses lead to increased foreign debt. D) Trade deficits lead to increased domestic production. Show Answer Correct Answer: B) Trade deficits can lead to increased foreign debt and decreased domestic production, while trade surpluses can lead to increased domestic production and potential currency appreciation. 6. Who would say the following? "A country should never import more than it exports." A) Protectionist. B) Free Trader. Show Answer Correct Answer: A) Protectionist. 7. Portfolio investment means investing funds in plant and machinery for marketing and production, also known as a foreign direct investment (FDI). A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 8. Labor is free to go where it wants. People are no longer pinned down to their home country A) Pro. B) Con. Show Answer Correct Answer: A) Pro. 9. The correct supplier evaluation and selection steps are..... A) Planning-Collecting Data-Selection-Using Vendors-Performance Evaluation-Vendor Improvement. B) Planning-Selection-Collecting Data-Using Vendors-Performance Evaluation-Vendor Improvement. C) Collecting Data-Selection-Using Vendors-Performance Evaluation-Vendor Improvement-Planning. D) Planning-Collecting Data-Selection-Using Vendors-Vendor Improvement-Performance Evaluation. Show Answer Correct Answer: A) Planning-Collecting Data-Selection-Using Vendors-Performance Evaluation-Vendor Improvement. 10. Which is NOT part of Porter's diamond of competitive advantage theory? A) Supply Conditions. B) Strategy, Structure and Rivalry. C) Supporting Industries. D) Factor Endowments. Show Answer Correct Answer: A) Supply Conditions. 11. What is the concept of comparative advantage? A) The idea that countries should produce as much as possible on their own. B) The idea that countries should trade with one another to be more successful. C) The idea that countries should focus on making things they are comparatively good at. D) The idea that a country's power should be judged by how much gold it can amass. Show Answer Correct Answer: C) The idea that countries should focus on making things they are comparatively good at. 12. Why does Canada export lumber, while the United States exports wheat, and China exports labor-intensive manufactured goods? A) Each is producing what it most efficiently produces and all benefit from their doing so. B) Each has imposed tariffs on what others produce so that it can subsidize its industries. C) Each is required by the World Trade Organization (WTO) to concentrate on producing what others need, not just what they need. D) Their command economies depend on specialization. Show Answer Correct Answer: A) Each is producing what it most efficiently produces and all benefit from their doing so. 13. How many assumptions are there in Comparative Advantage Theory? A) 4. B) 5. C) 6. D) 7. Show Answer Correct Answer: B) 5. 14. When the U.S. dollar ..... in value, this is a good time for Americans to travel abroad. A) Appreciates. B) Depreciates. Show Answer Correct Answer: A) Appreciates. 15. What will be the effect to the world output if we allow each country to specialize in producing goods in which it has a comparative advantage? A) Decrease. B) Maintained. C) Increase. D) Constant. Show Answer Correct Answer: C) Increase. 16. An increase in the value of a currency; one currency can buy more of another A) Currency Depreciation. B) Foreign Direct Investment. C) Currency Appreciation. D) Tariffs. Show Answer Correct Answer: C) Currency Appreciation. 17. Which organization replaced the GATT and expanded its traditional focus on manufactured goods, creating monitoring and enforcement mechanisms? A) World Trade Organization (WTO). B) General Agreement on Tariffs and Trade (GATT). C) North American Free Trade Agreement (NAFTA). D) Organization of Petroleum Exporting Countries (OPEC). Show Answer Correct Answer: A) World Trade Organization (WTO). 18. What is the term for a non-financial benefit of FDI, such as a transfer of knowledge, technology, or management technique? A) Physical investment. B) Controlling interest. C) Deregulation. D) Spillover effect. Show Answer Correct Answer: D) Spillover effect. 19. What one risk of being involved in exporting and importing? A) Local demand and supply can not be met. B) More revenue. C) Growth of international consumption. D) Improve the living standard. Show Answer Correct Answer: A) Local demand and supply can not be met. 20. Equilibrium in the economy is when A) Ip + T + M = Y + S. B) O= C + G + S. C) Ip + G + X = Sp + T + M. D) Sp = G + T + M. Show Answer Correct Answer: C) Ip + G + X = Sp + T + M. ← 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