This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 86 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 86 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How many categories are there for duration and purpose of insurance? A) 2. B) 3. C) 4. D) 5. Show Answer Correct Answer: A) 2. 2. When a country has the ability to produce a product at a lower opportunity cost than another country. A) Comparative Advantage. B) Favorable Advantage. C) Absolute Advantage. D) Positive Net Export. Show Answer Correct Answer: A) Comparative Advantage. 3. A subsidy differs from a tariff and quota in that when a subsidy is granted, A) Consumers are not affected. B) Producers are not affected. C) The quantity of imports remains the same. D) There is no welfare loss. Show Answer Correct Answer: A) Consumers are not affected. 4. South Africa can produce 1 barrel of oil using 3 units of land and can produce 1 karat of diamonds using 1 unit of land. On the other hand, Saudi Arabia can produce 1 barrel of oil using 1/2 unit of land and can produce 1 karat of Diamond using 6 units of land. Which country has comparative advantage in oil production? A) Saudi Arabia. B) South Africa. C) Both Countries. D) None. Show Answer Correct Answer: A) Saudi Arabia. 5. Who benefits when a firm buys a foreign product because it is cheaper? A) None of the above. B) The foreign producer only. C) The domestic seller only. D) Both the buyer and the foreign producer. Show Answer Correct Answer: D) Both the buyer and the foreign producer. 6. Insurance compensation is..... A) The fee paid by the policyholder to the insurer for insuring the insured item, and the premium is calculated based on the value of the insurance. B) Funds to be paid by the insurer to the insured in the event of an insured event under the contract. C) The damage caused to the insured item and the fulfillment of the conditions specified in the contract. D) It is a document issued by the insurance company to the insured confirming the insurance and is an integral part of the insurance contract. Show Answer Correct Answer: B) Funds to be paid by the insurer to the insured in the event of an insured event under the contract. 7. Which of the following refers to the ability of a nation to produce a good more efficiently than any other nation? A) Mercantilism. B) Comparative advantage. C) Absolute advantage. D) Neomercantilism. Show Answer Correct Answer: C) Absolute advantage. 8. The following is the 3rd step in strategic sourcing is..... A) Assess Opportunities. B) Profile Internally & Externally. C) Develop the sourcing strategy. D) Conduct supplier selection. Show Answer Correct Answer: C) Develop the sourcing strategy. 9. Weight A) Work. B) Weight. C) Weight. D) Weigh. Show Answer Correct Answer: B) Weight. 10. What is the most common form of international trade financing? A) Personal check. B) Cash payment. C) Bank transfer. D) Traveler's cheque. Show Answer Correct Answer: C) Bank transfer. 11. Exporting countries agree to VERs to avoid more damaging punitive tariffs. A) True. B) False. Show Answer Correct Answer: A) True. 12. Japan increased its tariff on U.S. made cars by 50%. The U.S. raised the tariffs on Japan's products such as cameras. Which of the following would result from the change in tariffs on cars and cameras? A) The standard of living would remain the same. B) The standard of living would decrease. C) The standard of living would be unpredictable. D) The standard of living would increase. Show Answer Correct Answer: B) The standard of living would decrease. 13. What is the term for the flow of money from one country to another in search of short-term returns? A) Foreign exchange. B) Capital flight. C) The trade fails. D) Hot money. Show Answer Correct Answer: D) Hot money. 14. International trade allows countries to specialise in the goods and services they're best at producing. 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. 15. NAFTA is an agreement among the U.S., Canada, and Mexico primarily intended to promote A) Environmental protection. B) Military defense. C) Human rights. D) Free trade. Show Answer Correct Answer: D) Free trade. 16. What is an example of a Documentation requirement related to customs clearance? A) GST Number. B) Unit of Measurement. C) Port Name. D) Corporate Contact. Show Answer Correct Answer: A) GST Number. 17. How many subscribers did Netflix have when it expanded to 190 countries? A) 140 million. B) 209 million. C) 50 million. D) 10 million. Show Answer Correct Answer: B) 209 million. 18. What does a negative balance of payment say about a country A) In debt. B) The value of their currency. C) Balance of trade. D) None of the above. Show Answer Correct Answer: A) In debt. 19. Who has the comparative advantage in Planes? A) Y. B) X. C) Neither. D) Unknown. Show Answer Correct Answer: B) X. 20. Processing is a mode of producing goods in which an outsourcer supplies raw materials and semi-finished products to the processor. Processors shall produce and deliver final products upon request to the outsourcers and receive ..... A) Wages. B) Production expenses. C) Processing fee. D) Transportation cost. Show Answer Correct Answer: C) Processing fee. ← 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