This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 94 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 94 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which includes international trade in services A) Gojek. B) Grab. C) Cow. D) Mobil. Show Answer Correct Answer: B) Grab. 2. International trade is subject to ..... A) Economic. B) Law or legislation. C) Politics. D) Good and services. Show Answer Correct Answer: B) Law or legislation. 3. Import quotas are another common barrier countries use. A) All are true. B) It is a limit on the amount of a particular good that could imported in a given amount of time. C) By limiting the supply, you drive the price up, thereby making the imported good more expensive than its domestic competitor. D) None of above. Show Answer Correct Answer: A) All are true. 4. Watches made in China are worn by people in Nassau A) Import. B) Export. Show Answer Correct Answer: A) Import. 5. Development of ..... and communication sectors combined with the need to improve living conditions. A) Telecommunication. B) Health. C) Service. D) Transportation. Show Answer Correct Answer: D) Transportation. 6. Which theory suggests that nations will develop comparative advantages based on their locally abundant factors? A) Heckscher-Ohlin theory. B) Absolute advantage theory. C) Comparative advantage theory. D) Strategic trade theory. Show Answer Correct Answer: A) Heckscher-Ohlin theory. 7. The value of one country's currency expressed in terms of another country's currency is referred to as the: A) Standards. B) Trade Rate. C) Exchange Rate. D) Common Currency. Show Answer Correct Answer: C) Exchange Rate. 8. This document is used when sending goods by air: A) Airway Bill. B) Bill of Lading. C) Certificate of Origin. D) Consular Invoice. Show Answer Correct Answer: A) Airway Bill. 9. As a challenge to Global trade, Intense competition refers to ..... A) Higher transport costs as Ireland is an Island nation. B) A country may not have the natural resources needed to make products. C) Larger incoming companies may lead to closure of smaller Irish companies. D) Companies will have to change their packaging to suit certain cultures. Show Answer Correct Answer: C) Larger incoming companies may lead to closure of smaller Irish companies. 10. Foreign investment can be in the form of ..... A) Direct investment. B) Portfolio investment. C) Both 'a' and 'b'. D) None of these. Show Answer Correct Answer: C) Both 'a' and 'b'. 11. The difference between the value of a country's visible and invisible exports and the value of its visible and invisible imports is referred to as the A) Balance of trade. B) Per capita income. C) Balance of payments. D) Gross national product. Show Answer Correct Answer: A) Balance of trade. 12. Which of the following is not true about joint venture? A) Financially less burdensome than a wholly owned subsidiary. B) Foreign business is benefited from a local partner's knowledge. C) No need to share technology. D) May lead to conflicts. Show Answer Correct Answer: C) No need to share technology. 13. What is the income earned by specialists used for? A) To invest in foreign markets. B) To donate to charity. C) To purchase the goods and services they require which they do not produce themselves. D) To hoard wealth without spending. Show Answer Correct Answer: C) To purchase the goods and services they require which they do not produce themselves. 14. Comparative advantage is the reason for why countries trade. A) True. B) False. Show Answer Correct Answer: A) True. 15. What protects the intellectual property created by artists? A) Geographical indications. B) Copyright. C) Patents. D) Trademarks. E) Registered designs. Show Answer Correct Answer: B) Copyright. 16. The policy of exporters selling goods abroad at cheaper prices than at home is one of the obstacles in international trade, namely..... A) Protection. B) Dumping. C) Quota. D) Rates. Show Answer Correct Answer: B) Dumping. 17. The government tells people what to buy and how much to buy: A) Traditional Economy. B) Market Economy. C) Command Economy. D) None of above. Show Answer Correct Answer: C) Command Economy. 18. Markets in which there are many buyers and sellers, none of whom represents a large part of the market-firms are price takers. A) Economies of scale. B) Internal economies of scale. C) External economies of scale. D) Perfectly competitive market. Show Answer Correct Answer: D) Perfectly competitive market. 19. Network A) (n) a web of social connections. B) (n) to buy and sell goods and services. C) (n) a place where customers buy things. D) (n) items bought to satisfy needs and wants. Show Answer Correct Answer: A) (n) a web of social connections. 20. 3/ What does External Economies of Scale Trade Based On? A) The breakdown of perfect competition, unless they take the form of external economies, which occur at the level of the industry instead of the firm. B) The increase or decrease national welfare, and countries may benefit from temporary protectionism if their industries exhibit external economies of scale either at a point in time or over time. C) Depending on the size of the company or the size of the industry. D) None of above. Show Answer Correct Answer: B) The increase or decrease national welfare, and countries may benefit from temporary protectionism if their industries exhibit external economies of scale either at a point in time or over time. ← 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