This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. We import most of our goods from China. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. How do import quotas impact the availability of goods in a country? A) Import quotas have no impact on the availability of goods in a country. B) Import quotas only impact the availability of services in a country. C) Import quotas increase the availability of goods in a country. D) Import quotas limit the availability of goods in a country. Show Answer Correct Answer: D) Import quotas limit the availability of goods in a country. 3. Absolute advantage is the ability to produce goods or services with fewer resources than other country. A) True. B) False. Show Answer Correct Answer: A) True. 4. How does a tariff protect infant industries? A) Reduces sales tax for new products. B) Raises trade barriers for imports of child-care products. C) Reduces foreign competition by making foreign products more expensive. D) None of above. Show Answer Correct Answer: C) Reduces foreign competition by making foreign products more expensive. 5. By having the policy settings to benefit from trade, investment and skilled migration, Australia's economy is stronger and our standard of living higher. A) True. B) False. Show Answer Correct Answer: A) True. 6. It is to increase the return through higher revenues and or lower cost what aspect of why do firms expand internationally? A) DEFENSIVE MOTIVES. B) ECONOMIC MOTIVES. C) STRATEGIC MOTIVES. D) OFFENSIVE MOTIVES. Show Answer Correct Answer: B) ECONOMIC MOTIVES. 7. A good or service brought in from another country for sale. A) Import. B) Export. C) Tariff. D) None of above. Show Answer Correct Answer: A) Import. 8. A disadvantage of international trade:There are other costs to firms that trade internationally, such as complying with other countries' legal and technical requirements, translating legal documents and advertising material, and performing market research for overseas markets. A) Yes, I understand this from the notes. B) No, I don't understand this from the notes. C) No, I don't understand this, as I have not read the notes. D) None of above. Show Answer Correct Answer: A) Yes, I understand this from the notes. 9. Commodity A) Merchadise. B) Merchandising. C) Order. D) Goods. Show Answer Correct Answer: D) Goods. 10. FCA means A) Carriage Paid To. B) Delivered at Place Unloaded. C) Carriage and Insurance Paid To. D) Free Carrier. Show Answer Correct Answer: D) Free Carrier. 11. ..... is protected by tariffs and quotas in the short run. A) Consumer choice. B) Price wars. C) Foreign employment. D) Domestic jobs. Show Answer Correct Answer: D) Domestic jobs. 12. Something that blocks you so that movement, going forward, or action is prevented or made more difficult A) Obstacle. B) Retrictions. C) Handicap. D) Block. Show Answer Correct Answer: A) Obstacle. 13. What was the purpose of the founding of the European Union (E.U.) in 1993? A) To fight the growing global network of terrorist organizations. B) To become an economic power to compete with the United States. C) To prevent the poor from causing a revolution in underdeveloped nations. D) To guarantee the free movement of people, goods, & services between nations. Show Answer Correct Answer: D) To guarantee the free movement of people, goods, & services between nations. 14. Forms of financial contribution are: A) Direct fund transfer. B) Procurement of goods. C) Appointment of private agencies/institutions in implementing certain projects. D) All true. Show Answer Correct Answer: D) All true. 15. Complete:Before he bought his new BMW, Jim ..... A) The last thing I need is. B) Took it for a test drive. C) You've got a deal. D) Haggled. Show Answer Correct Answer: B) Took it for a test drive. 16. What is an advantage of international specialisation? A Choice is limited. B Countries become over-dependent on each other. C Resources are used more efficiently. D Transport costs are decreased. A) A. B) B. C) C. D) D. Show Answer Correct Answer: C) C. 17. How does the specialisation lead to great efficiency? A) It saves time for the production. B) Reduce the skill of labour. C) Labour productivity went down. D) Managerial skill will not be developed. Show Answer Correct Answer: A) It saves time for the production. 18. Exchange Instability is the main reason that discourages businesses in going online. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 19. A country imports goods and services that are comparatively more desired than abroad A) True. B) False. Show Answer Correct Answer: A) True. 20. What determines what a country can produce efficiently and successfully? A) The country's human, physical, technological, and financial resources. B) The country's ability to maximize exports and minimize imports. C) The country's supply of gold. D) The country's ability to innovate and create new products. Show Answer Correct Answer: A) The country's human, physical, technological, and financial resources. ← 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 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books