This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 95 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 95 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The headquarters of World Trade Organisation (WTO) is situated at: A) New York, USA. B) Brussels, Belgium. C) Geneva, Switzerland. D) London, UK. Show Answer Correct Answer: C) Geneva, Switzerland. 2. The greatest ..... of being a parent is to see your child make a wise decision A) Reward. B) Extract. C) Haggle. D) Brave. Show Answer Correct Answer: A) Reward. 3. A system of imposing extra costs on imports; isolating and not engaging in trade with other countries: A) Protectionism. B) Totalitarianism. C) Globalization. D) None of these. Show Answer Correct Answer: A) Protectionism. 4. Purpose:To make imported goods more expensive A) Quota. B) Tariff. C) Embargo. D) None of above. Show Answer Correct Answer: B) Tariff. 5. The policy of erecting trade barriers to shield domestic markets from foreign competition. A) Free Trade. B) Protectionism. C) Trade Barriers. D) None of above. Show Answer Correct Answer: B) Protectionism. 6. The restrictive practices may include A) Withdrawals and savings. B) Trade wars. C) Sanctions and embargoes. D) Terms and conditions. Show Answer Correct Answer: C) Sanctions and embargoes. 7. Nations conduct international trade because A) Some nations prefer to produce one thing while others produce other things. B) Resources are not equally distributed among all nations. C) Trade enhances opportunities to accumulate profits. D) Interest rates are not identical in all trading nations. Show Answer Correct Answer: B) Resources are not equally distributed among all nations. 8. A traditional economy: A) Answers the What, How and For Whom questions the way they have always been answered. B) Answers the What, How and For Whom questions by central authority. C) Answers the What, How and For Whom questions using prices determined by the interaction of supply and demand. D) None of above. Show Answer Correct Answer: A) Answers the What, How and For Whom questions the way they have always been answered. 9. What does comparative advantage refer to in international trade? A) Ability of a country to produce all goods. B) Country's capability to produce at a higher cost. C) Capacity to produce goods at the lowest opportunity cost. D) A country's ability to restrict imports. Show Answer Correct Answer: C) Capacity to produce goods at the lowest opportunity cost. 10. Those goods, raw materials, and services a country decides to buy from another country A) Imports. B) Exports. C) Trade. D) Globalization. Show Answer Correct Answer: A) Imports. 11. The ..... of a good is the value of what is given up to get the good. A) Relative cost. B) Opportunity cost. C) Absolute cost. D) Discount cost. Show Answer Correct Answer: B) Opportunity cost. 12. It is a way to move from one place to another in order to live and work. A) Immigrate. B) Emigrate. C) Migration. D) None of the above. Show Answer Correct Answer: C) Migration. 13. Which stage in product cycle model an innovating country start to import 100% of goods and services from imitating country? A) 1. B) 2. C) 3. D) 4. E) 5. Show Answer Correct Answer: E) 5. 14. Restrictions on imports and exports among countries A) Trade barrier. B) Trade embargo. C) Trade tariffs. D) Comparative advantage. Show Answer Correct Answer: A) Trade barrier. 15. Which of the following is a major benefit of engaging in free trade? A) It helps the countries protect the jobs that are available to their citizens. B) It gives countries access to products that they cannot produce. C) It allows the governments to exert more control on businesses. D) It helps to reduce the financial volatility in global markets. Show Answer Correct Answer: B) It gives countries access to products that they cannot produce. 16. An ..... is a limit on the amount of a good that can be imported A) Infrastructure. B) Export. C) Tariff. D) Import quota. Show Answer Correct Answer: D) Import quota. 17. Which law regulates electronic messages to combat spam and other electronic threats in Canada? A) Consumer Protection Act. B) Canadian Anti-Spam Legislation (CASL). C) Competition Act. D) Personal Information Protection and Electronic Documents Act (PIPEDA). Show Answer Correct Answer: B) Canadian Anti-Spam Legislation (CASL). 18. China sells erasers to Brazil. This is an ..... A) Import. B) Export. C) Donation. D) None of above. Show Answer Correct Answer: B) Export. 19. What is a result of free trade? A) There will be no trading between countries. B) There will be more restrictions on trading between countries. C) There will be no restrictions on the number of goods coming in. D) None of above. Show Answer Correct Answer: C) There will be no restrictions on the number of goods coming in. 20. When exports exceed imports, a nation is said to have a ..... A) Balance of Trade. B) Balance of Payments. C) Trade Surplus. D) Trade Failure. Show Answer Correct Answer: C) Trade Surplus. ← 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