This quiz works best with JavaScript enabled. Home > Economics > International Economics > International Trade > International Trade – Quiz 99 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books International Trade Quiz 99 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Are those goods, raw materials, and services a country decides to buy from another country. A) Surplus goods. B) Exports. C) Services. D) Imports. Show Answer Correct Answer: D) Imports. 2. An example of a top export of the Philippines would be telecommunication devices. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 3. Megayoung Corp imported jewelries to Dubai. The company paid 10% of the value of jewelries. Megayoung corporations paid what kind of tariff? A) Specific tariff. B) To the tariff value. Show Answer Correct Answer: B) To the tariff value. 4. Mutual trade agreement among two or more partners within a regional trade bloc A) Regional Trade Agreement. B) Multilateral Trade Agreement. C) Bilateral Trade Agreement. D) International Trade Agreements. Show Answer Correct Answer: A) Regional Trade Agreement. 5. When nations exchange, it is called ..... A) Absolute advantage. B) Comparative advantage. C) Specialization. D) International Trade. Show Answer Correct Answer: D) International Trade. 6. Which document is used to specify the terms of international trade, including the price, quantity, and quality of goods? A) Bill of lading. B) Certificate of origin. C) Commercial invoice. D) Packing list. Show Answer Correct Answer: C) Commercial invoice. 7. Slave trade was abolished in Britain in year A) 1808. B) 1807. C) 1508. D) 1407. Show Answer Correct Answer: B) 1807. 8. Which of the following is true of the absolute advantage theory of international trade? A) It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. B) It divides the countries of the world into three categories based on innovation. C) It advocates extensive government intervention in international trade. D) It was the first theory that advocated free trade. Show Answer Correct Answer: D) It was the first theory that advocated free trade. 9. Supplier: A) Company which carries goods by road. B) Company which supplies parts or services to another company, also called vendor. C) Company which specializes in the speedy and secure delivery of small goods and packages. D) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. E) Company that transport or conveys goods. Show Answer Correct Answer: B) Company which supplies parts or services to another company, also called vendor. 10. If a business is multinational company, what does this mean? A) Importing and exporting goods. B) Selling and manufacturing in multiple countries. C) Only trading in one country. D) Trading in multiple countries. Show Answer Correct Answer: B) Selling and manufacturing in multiple countries. 11. If one nation becomes more efficient than another nation at producing a specific product, the more efficient nation is said to have A) Better resouces. B) More capital. C) Determination. D) A comparative advantage. Show Answer Correct Answer: A) Better resouces. 12. We offer a ..... to customers who buy in bulk. A) Subsidy. B) Discount. C) Bonus. D) Voucher. Show Answer Correct Answer: B) Discount. 13. Which of the following is most true? A) Each nation should try to become self-sufficient. B) Wealthy nations should only trade with other wealthy nations. C) Nations should specialize in producing goods where they have the comparative advantage. D) None of above. Show Answer Correct Answer: C) Nations should specialize in producing goods where they have the comparative advantage. 14. Which term is defined as a tax on imported goods? A) Embargo. B) Quota. C) Subsidy. D) Tariff. Show Answer Correct Answer: D) Tariff. 15. In the Himalayan countries of Nepal and Bhutan, (a) contributes to their isolation from globalization? A) A mountain barriers. B) Diffusion. C) Cultural seclusion. D) Mt Everest. Show Answer Correct Answer: A) A mountain barriers. 16. Given that:In the production of 1 ton rice, the Philippines uses 40 units of resources, and Sri Lanka uses 65 units of resources.In the production of 1 ton of corn, the Philippines uses 15 units of resources, and Sri Lanka uses 40 units of resources.In what products each country has comparative advantage on? A) Philippines-rice ; Sri Lanka-corn. B) Philippines-corn ; Sri Lanka-rice. C) Both countries on rice. D) Both countries on corn. Show Answer Correct Answer: D) Both countries on corn. 17. The Ricardian Model neglects the possible role of what concept as a cause of trade? A) Specialization. B) Distribution of Income. C) Resources. D) Economies of Scale. Show Answer Correct Answer: D) Economies of Scale. 18. What did the North American Free Trade Agreement (NAFTA) aim to do? A) Address the unique circumstances of developing countries. B) Create rules governing intellectual property. C) Lower trade barriers like tariffs. D) Facilitate more trade among the United States, Mexico, and Canada. Show Answer Correct Answer: D) Facilitate more trade among the United States, Mexico, and Canada. 19. Haulier: A) Company which carries goods by road. B) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. C) Company which specializes in the speedy and secure delivery of small goods and packages. D) Person or business that arranges documentation and travel facilities for companies dispatching goods to customers. E) Company that transport or conveys goods. Show Answer Correct Answer: A) Company which carries goods by road. 20. Porter's theory stated that a nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. ← 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