This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 92 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 92 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What does the World Trade Organization (WTO) do? A) All of the above. B) Address unfair trade practices. C) Hammer out the rules and regulations of international trade. D) Eliminate obstacles to international trade. Show Answer Correct Answer: A) All of the above. 2. It is the best way to encourage free trade through the transit of goods between countries without paying taxes. Boosts trade through competitive and comparative advantages of goods. A) Preferential trade. B) Non-tariff regulations reduction. C) Tariff Relief. D) Rules of Origin. Show Answer Correct Answer: C) Tariff Relief. 3. Goods that are bought in trade. The name they recive when these goods are being moved or shipped. A) Merchandise. B) Freight. C) Cargo. D) All of them are correct. Show Answer Correct Answer: D) All of them are correct. 4. What is balance of trade in a country? A) Difference between a country's import and export. B) Value of a country's import and export. C) How much the country earns through trade. D) The amount of goods exported/imported. Show Answer Correct Answer: A) Difference between a country's import and export. 5. In an effort to encourage free trade, a worldwide organization was create call the World Trade Organization. A) True. B) False. Show Answer Correct Answer: A) True. 6. According to economists, international trade among countries ..... A) Increases the chance of conflict because of competition. B) Increases the chance of conflict because of economic rivalry. C) Decreases the chance of conflict because of economic advantages. D) Decreases the chance of conflict because of floating exchange. Show Answer Correct Answer: C) Decreases the chance of conflict because of economic advantages. 7. Which of the following is equally TRUE for both individual trade between people and international trade between market economy nations? A) It is voluntary and mutually beneficial. B) It is mandated by government leaders. C) It is controlled by special United Nations committees. D) It always involves a winner and a loser. Show Answer Correct Answer: A) It is voluntary and mutually beneficial. 8. Advancements in aviation contribute to time-space convergence by (a). A) Decreasing the availability of global travel. B) Significantly reducing travel times. C) Making international travel more expensive. D) Increasing travel times. Show Answer Correct Answer: B) Significantly reducing travel times. 9. A company's use of an existing product or promotion from which changes are made to better suit the characteristics of a country or region. A) Adaptation. B) Globalization. C) Corporate. D) None of above. Show Answer Correct Answer: A) Adaptation. 10. How can businesses compete internationally without setting up stores abroad? A) By avoiding international trade. B) By relying on local businesses for sales. C) By expanding through e-commerce. D) By limiting access to international markets. Show Answer Correct Answer: C) By expanding through e-commerce. 11. Which of the following is NOT a benefit of free international trade? A) Benefits local farmers and small businesses. B) Opens up markets to a greater diversity of products. C) Creates more competition for businesses. D) Decreases laborcosts for big business. Show Answer Correct Answer: A) Benefits local farmers and small businesses. 12. What percentage of the population in India is vegetarian, leading McDonald's to adapt its menu for this market? A) 40%. B) 25%. C) 60%. D) 10%. Show Answer Correct Answer: A) 40%. 13. Two producers will MOST likely have production possibility frontiers with the same slope if A) One producer has a comparative advantage. B) They live in isolated economies. C) They shar e the same preferences. D) They face the same opportunity cost. E) One producer has an absolute advantage. Show Answer Correct Answer: D) They face the same opportunity cost. 14. The account which records a nation's foreign economic transactions is called the: A) Trade Account. B) T account. C) Exchange Market. D) Balance of Payments. Show Answer Correct Answer: D) Balance of Payments. 15. The total value of goods imported minus the total value of goods exported is referred to as A) Balance of trade. B) Total currency flow. C) Balance of payments. D) Current account balance. Show Answer Correct Answer: A) Balance of trade. 16. One of the characteristics of a collaborative relationship is..... A) There are many supplier choices available. B) Build long-term relationships. C) The basis for selecting suppliers is only based on price. D) Sharing a little information. Show Answer Correct Answer: B) Build long-term relationships. 17. What are the reasons for international trade? A) Unequal distribution of resources and specialization. B) Good brought into the country. C) Goods sent to other countries. D) To concentrate their efforts on producing a few goods and services instead of everything they need. Show Answer Correct Answer: A) Unequal distribution of resources and specialization. 18. How does international trade benefit consumers? A) By reducing consumer choices. B) By increasing prices of goods and services. C) By providing access to a wider variety of goods and services. D) By limiting availability of goods and services in the domestic market. Show Answer Correct Answer: C) By providing access to a wider variety of goods and services. 19. Mercantilism is an economic theory that emphasizes self-sufficiency through a trade surplus. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 20. International trade suffers from the limitation of: A) Not easy for new and small business firms. B) Efficient use of resources. C) Employment potentials. D) Increased standard of living. Show Answer Correct Answer: A) Not easy for new and small business firms. ← 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