This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 82 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 82 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In which of the following categories are there transactions of balance of trade recorded? A) Visible items. B) Invisible items. C) Capital transfers. D) All of these. Show Answer Correct Answer: A) Visible items. 2. What would be one consequence of a prolonged decline in the value of the euro relative to the U.S. dollar? A) European exports to the United States would become less expensive. B) U.S. exports to Europe would become cheaper. C) European imports from the United States would increase. D) U.S. imports from Europe would become more expensive.U.S. imports from Europe would become more expensive. Show Answer Correct Answer: A) European exports to the United States would become less expensive. 3. Nations trade to have an efficient production of goods and services which requires combination of the right resources and technologies. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. The NT principle is..... A) The principle of non-discrimination which provides equal treatment between countries. B) The principle of non-discrimination which provides equal treatment to fellow imported products. C) The principle of non-discrimination which provides equal treatment between imported products and local/domestic products. D) The principle of non-discrimination which provides equal treatment to fellow export products. Show Answer Correct Answer: C) The principle of non-discrimination which provides equal treatment between imported products and local/domestic products. 5. Government makes payments to local suppliers to reduce the production costs of the supplier and help them compete in trade ..... A) Embargo. B) Standard. C) Subsidy. D) None of above. Show Answer Correct Answer: C) Subsidy. 6. A disadvantage of international trade:International trade increases globalisation, which has its own disadvantages 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. 7. The theory of comparative advantage ..... A) Reduces the wealth of the nation in the short run. B) Provides direct policy advice. C) Explains patterns of trade based on factor endowments. D) Was the first theory to incorporate dynamic changes in patterns of trade. Show Answer Correct Answer: C) Explains patterns of trade based on factor endowments. 8. What Is Free Trade A) International trade left to its natural course with tariffs, quotas, embargoes, subsidies, and other restrictions. B) Trade that protects:national security, domestic employment, and the environment in developing countries. C) International trade left to its natural course without tariffs, quotas, or other restrictions. D) Economic sanctions applied by one or more countries against a targeted country, group, or individual. Show Answer Correct Answer: C) International trade left to its natural course without tariffs, quotas, or other restrictions. 9. An unfavorable balance of trade that occurs when a country's import are greater than its exports A) The trade fails. B) Trade surplus. Show Answer Correct Answer: A) The trade fails. 10. Balance of Trade A) Country's total amount of exports minus the total amount of imports. B) Foreign goods shipped into a country or region. C) Goods produced in one country, then shipped to another region or country. D) International organization overseeing world trade; ensures world trade occurs in a smooth and free-flowing manner with little disruption. Show Answer Correct Answer: A) Country's total amount of exports minus the total amount of imports. 11. Goods that are bought and sold in trade. If being shipped or moved, it may be called FREIGHT or CARGO. A) Merchandise. B) Shipment. C) Export. D) None of above. Show Answer Correct Answer: A) Merchandise. 12. What organization negotiates and administers trade agreements among member nations? A) WTO. B) NAFTA. C) EU. D) APEC. Show Answer Correct Answer: A) WTO. 13. A country wishes to increase a current account surplus on the balance of payments.Which action would it take? A) Abolish an import quota. B) Increase import tariffs. C) Remove export subsidies. D) Tax export producers. Show Answer Correct Answer: B) Increase import tariffs. 14. If the importer would like to take delivery to Kangar Perlis, it is advisable for him to accept a price using an Incoterm stating "Incoterm CIF Penang" rather than "Incoterm CIF Malaysia" . Explain TWO (2) reasons for the advised action. A) Additional cash and payment in arranging the movement of goods back to Penang. and additional cash to pay the transportation to Penang.delay in receiving the cash.Other effects of the above could see an eventual erosion of his profit margin, possibility of production delay, not fulfilling his obligation timely, etc. B) Additional work in arranging the movement of goods back to Penang. and additional cost to pay the transportation to Penang.delay in receiving the goods.Other effects of the above could see an eventual erosion of his profit margin, possibility of production delay, not fulfilling his obligation timely, etc. C) Additional time in arranging the movement of goods back to Penang. and additional time to pay the transportation to Penang.delay in receiving the money.Other effects of the above could see an eventual erosion of his profit margin, possibility of documents delay, not fulfilling his obligation timely, etc. D) All the above. Show Answer Correct Answer: B) Additional work in arranging the movement of goods back to Penang. and additional cost to pay the transportation to Penang.delay in receiving the goods.Other effects of the above could see an eventual erosion of his profit margin, possibility of production delay, not fulfilling his obligation timely, etc. 15. What is a deficit? A) Break even amount t the end. B) Less money left at the end (a loss). C) More money left at the end (profit). D) None of above. Show Answer Correct Answer: B) Less money left at the end (a loss). 16. What does a country have when it can produce a unit of good with fewer resources than another country? A) Absolute Advantage. B) Comparative Advantage. C) Trade Advantage. D) Strategic Advantage. Show Answer Correct Answer: A) Absolute Advantage. 17. Swedish economist developed the country similarity theory in 1961. A) Paul Krugman. B) Steffan Linder. C) Raymond Vernon. D) Michael Porter. Show Answer Correct Answer: B) Steffan Linder. 18. Argues that each country should produce and export goods that intensively use factors of production that it holds in abundance, and import goods that intensively use relatively scarce factors of production ..... A) ECONOMIC MOTIVES. B) DEFENSIVE MOTIVES. C) FACTORS PROPORTION THEORY. D) OFFENSIVE MOTIVES. Show Answer Correct Answer: C) FACTORS PROPORTION THEORY. 19. John Maynard kynes influenced the bretton woods system? A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 20. Countries specialise because:i) they have the resources to produce the good or service efficiently; and ii) they're better than other countries at producing the good or service. 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. ← 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