This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 90 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 90 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main source of additional foreign exchange comes from..... A) Export. B) Foreign loans. C) Impor. D) Foreign grants. Show Answer Correct Answer: A) Export. 2. International trade is of the reasons that will allow a country's economy to grow. Without it, a nation might not have access to a key resource or a way to exchange its own key resources for other items needed. A) True. B) False. Show Answer Correct Answer: A) True. 3. What formula do you use to change US dollars into foreign currency? A) M.O.M. B) D.A.D. Show Answer Correct Answer: A) M.O.M. 4. If other things are held constant, an increase in the United States imports will tend to cause the dollar to ..... A) Appreciate because the world supply of dollars will rise. B) Appreciate because the world demand for dollars will rise. C) Depreciate because the world supply of dollars will rise. D) Depreciate because the world demand for dollars will rise. Show Answer Correct Answer: A) Appreciate because the world supply of dollars will rise. 5. Indonesia's export commodities are A) Mobil. B) HP. C) Padi. D) Rubber. Show Answer Correct Answer: D) Rubber. 6. During the 19th Century, economic growth of the major trading countries was biased toward manufactures away from food. The less developed countries of that time were net exporters of food. From this information, we would expect to have observed A) Falling terms of trade for the less developed countries. B) Improving (rising) terms of trade for the less developed countries. C) No change at all in the terms of trade of the less developed countries. D) A decrease in the relative price of food. Show Answer Correct Answer: B) Improving (rising) terms of trade for the less developed countries. 7. A trade barrier that places a tax on imported goods A) Standard. B) Embargo. C) Quota. D) Tariff. Show Answer Correct Answer: D) Tariff. 8. What determines supply decisions in a competitive economy? A) The attempt of individuals to maximize their profit. B) The attempt of individuals to minimize their profit. C) The attempt of individuals to maintain their profit. D) The attempt of individuals to gain profit. Show Answer Correct Answer: A) The attempt of individuals to maximize their profit. 9. A group of countries that allow free movement of labour and capital within the group have a A) Customs union. B) Free trade area. C) Common market. D) Preferential trade agreement. Show Answer Correct Answer: C) Common market. 10. One of the trade policies carried out by the government is to reduce domestic production costs so that domestic production can compete with foreign production. This policy is called A) Quota. B) Subsidies. C) Dumping. D) Tariffs or import duties. Show Answer Correct Answer: B) Subsidies. 11. Which of the following organizations does the description refer to?"It has 164 members, accounting for 95% of world trade and with the function promoting free trade between member states" A) APEC. B) WTO. C) EU. D) ASEAN. Show Answer Correct Answer: B) WTO. 12. What is the primary objective of containerization in global trade? A) To promote labor rights. B) To reduce the efficiency of cargo handling. C) To increase transportation costs. D) To standardize the packaging and transport of goods. Show Answer Correct Answer: D) To standardize the packaging and transport of goods. 13. The U.S. can produce 10 ipads or 20 phones. China can produce 20 ipads or 30 phones. Who should produce what? A) U.S.-ipads China-phones. B) U.S. phones China-ipads. C) Both should produce ipads. D) They should not specialize. Show Answer Correct Answer: B) U.S. phones China-ipads. 14. The formula to calculate Balance of Payments is ..... A) Visible Exports-Visible Imports. B) Invisible Exports-Invisible Imports. C) Total Exports-Total Imports. D) Total Imports-Total Exports. Show Answer Correct Answer: C) Total Exports-Total Imports. 15. Who initiated liberalization? A) P.W. Narasimha Rao. B) H.D Deve Gowda. C) Atal Bihari Vajpayee. D) Chandrasekhar. Show Answer Correct Answer: A) P.W. Narasimha Rao. 16. One of the exclusion conditions in international trade is: A) Done together. B) Recognition from developed countries. C) Provide compensation to other WTO member countries. D) Not used as a disguised trade barrier. Show Answer Correct Answer: D) Not used as a disguised trade barrier. 17. Absolute advantage theory was introduced by A) Michael Porter. B) David Ricardo. C) Adam Smith. D) Raymond Vernon. Show Answer Correct Answer: C) Adam Smith. 18. According to Mansfield and Mutz the American negative attitude toward offshoring is less influenced by: A) Their political party of choice. B) The individual's economic self-interest. C) Ethnocentrism and antiforeign sentiment. D) None of above. Show Answer Correct Answer: B) The individual's economic self-interest. 19. Manufacturing or trade beyond the boundaries of one's own country is known as ..... A) Internal business. B) Domestic business. C) International business. D) Home trade. Show Answer Correct Answer: C) International business. 20. Which union does not deal with trade among countries? A) AND. B) EU. C) NAFTA. D) WTO. Show Answer Correct Answer: A) AND. ← 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