This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 98 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is an economic theory that advocates government regulation of international trade to generate wealth and strengthen national power. A) Leontief Paradox. B) Absolute Advantage. C) Comparative Advantage. D) Mercantilism. Show Answer Correct Answer: D) Mercantilism. 2. Which of the following is most likely to benefit from an appreciation of U.S. currency? A) U.S. investors in foreign assets, like bonds, savings accounts, stocks. B) Importers in foreign countries seeking cheaper raw inputs. C) U.S. exporters selling capital equipment to the rest of the world. D) U.S. travelers to foreign countries. Show Answer Correct Answer: D) U.S. travelers to foreign countries. 3. What do we call the difference between the value of exports and the value of imports? A) The balance of trade. B) The terms of trade. C) The pattern of trade. D) None of above. Show Answer Correct Answer: A) The balance of trade. 4. What is the significance of trade for a nation's consumption possibilities? A) Has no impact on consumption possibilities. B) Expands consumption possibilities by providing access to other countries' production through imports. C) Increases consumption possibilities by reducing exports. D) Reduces consumption possibilities by limiting access to other countries' production through imports. Show Answer Correct Answer: B) Expands consumption possibilities by providing access to other countries' production through imports. 5. Refusal of buying goods from another country A) Boycotts. B) Subsidies. C) Standards. D) Quotas. Show Answer Correct Answer: A) Boycotts. 6. Comparison of amounts of foreign currency taken into a country versus amounts of domestic currency paid out A) Accounts payable. B) GDP. C) Balance of payment. D) Profit & loss. Show Answer Correct Answer: C) Balance of payment. 7. A specific region in which trade between nations takes place without protective tariffs is called A) A corporate trade zone. B) A customs trade zone. C) A free trade zone. D) A free trade zone. Show Answer Correct Answer: C) A free trade zone. 8. An Australian mining company sells iron ore to a steel manufacturer in China. This is a ..... and ..... A) Injection, import. B) Leakage, import. C) Injection, export. D) Leakage, export. Show Answer Correct Answer: C) Injection, export. 9. In 2006, the United Nations Security Council unanimously adopted a resolution to restrict the export to and the import from Iran on certain items and technology potentially related to nuclear weapons. This is an example of which trade barrier? A) Tariff. B) Embargo. C) Quota. D) None of above. Show Answer Correct Answer: B) Embargo. 10. In negotiation tactics, the buyer's method of starting negotiations with a fairly low price is called: A) Low Ball. B) The Russian Front. C) Flattery. D) The Flinch. Show Answer Correct Answer: A) Low Ball. 11. If the USA exports $ 100 million of goods and imports $ 150 million, what does the USA have? A) A trade deficit. B) A trade surplus. C) A budget deficit. D) A budget surplus. Show Answer Correct Answer: A) A trade deficit. 12. Suppose Macro can produce 8 loaves of bread or 24 bottles of lemonade in one day. What is the opportunity cost of producing 1 loaf of bread? A) A. 24 bottles of lemonade. B) B. 3 bottles of lemonade. C) C. 1 bottle of lemonade. D) 4. 8 bottles of lemonade. E) 5. 6 bottles of lemonade. Show Answer Correct Answer: B) B. 3 bottles of lemonade. 13. Borrowed money that a country owes to foreign countries and banks is called A) National debt. B) External debt. C) Internal debt. D) Default. Show Answer Correct Answer: B) External debt. 14. What does the word "surplus" mean? A) An amount of something left over when requirements have been met. B) To have a little of something. C) To not have anything. D) Both option 2 and 3 are correct. Show Answer Correct Answer: A) An amount of something left over when requirements have been met. 15. Book A) Space on a ship, train, lorry or plane. B) A number of shipments under one bill oflading. C) Booking reservations. D) That the health and safety standards aremaintained. E) With all the necessary documentation. Show Answer Correct Answer: A) Space on a ship, train, lorry or plane. 16. Maintains tariffs on imports A) Protectionism. B) Free Trade. Show Answer Correct Answer: A) Protectionism. 17. Exchange rate where supply and demand determine the value of currency is called ..... A) Flexible exchange rate. B) Fixed exchange rate. C) Government exchange rate. D) None of above. Show Answer Correct Answer: A) Flexible exchange rate. 18. Bank transfer also called ..... A) Documentary credit. B) Documentary collection. C) Bank remittance. D) Bank collection. Show Answer Correct Answer: C) Bank remittance. 19. Refers to a collaboration between multiple parties who work towards a common goal of creating a profitable project or enterprise. By pooling their resources and expertise, the parties involved share the risks associated with the development of the project. A) Licensing. B) Franchising. C) Joint Venture. D) Multinational Corporation. Show Answer Correct Answer: C) Joint Venture. 20. What would be an economic benefit to a country of imposing a tariff on imported goods? A) A it would increase global productivity. B) B it would make the country's exports more competitve. C) C it would put pressure on foreign suppliers to reduce their prices. D) It would reduce the prices paid by consumers for imported goods. Show Answer Correct Answer: C) C it would put pressure on foreign suppliers to reduce their prices. ← 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